Section 10 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 10 sets the money consequence of breaking the designated partner rules in sections 7 and 9. Since the 2021 Act, it speaks of a "penalty" with a daily addition and a ceiling, not "punishable with fine", and the marginal heading no longer mentions section 8. If a penalty notice has already reached you, our legal consultation service can help you read it against the section.
Section 10 now has three sub-sections. Breach of 7(1) (the number, individual and resident requirement) draws a penalty of ten thousand rupees plus one hundred rupees for each day after the first, capped at one lakh rupees for the LLP and fifty thousand for every partner (10(1)). Breach of 7(4) (filing within thirty days) draws five thousand rupees plus one hundred a day, capped at fifty thousand for the LLP and twenty-five thousand for every designated partner (10(2)). Breach of 7(5) or section 9 draws ten thousand rupees plus one hundred a day, capped at one lakh for the LLP and fifty thousand for every partner (10(3)).
Section 10 at a glance
| Sub-section | Contravention of | Who is liable | Base penalty | Further penalty | Maximum |
|---|---|---|---|---|---|
| 10(1) | Section 7(1) | LLP and its every partner | Rs 10,000 | Rs 100 for each day after the first, in case of continuing contravention | Rs 1 lakh for the LLP; Rs 50,000 for every partner |
| 10(2) | Section 7(4) | LLP and its every designated partner | Rs 5,000 | Rs 100 for each day after the first, in case of continuing contravention | Rs 50,000 for the LLP; Rs 25,000 for every designated partner |
| 10(3) | Section 7(5) or section 9 | LLP and its every partner | Rs 10,000 | Rs 100 for each day after the first, in case of continuing contravention | Rs 1 lakh for the LLP; Rs 50,000 for every partner |
What each sub-section catches
10(1): section 7(1). This is the structural rule: at least two designated partners who are individuals and at least one resident in India. If the LLP does not meet it, the LLP and its every partner are liable. Note that the liability falls on every partner, not only on the designated partners (see section 7).
10(2): section 7(4). This is the filing rule: particulars of every individual who has consented to act as designated partner must be filed with the Registrar within thirty days of appointment. Here the liability falls on the LLP and every designated partner, with lower amounts.
10(3): section 7(5) or section 9. Section 7(5) is the prescribed eligibility conditions for designated partners; section 9 is the thirty-day rule for filling a vacancy. The LLP and every partner are liable.
What is not in the list: section 7(3) (prior consent) and 7(6) (DPIN) are not named in section 10. The text does not say they carry no consequence, only that section 10 does not name them. Other provisions of the Act, for example the general penalty provision, are outside this article.
How the numbers work
The phrase is "a penalty of ten thousand rupees and in case of continuing contravention, with a further penalty of one hundred rupees for each day after the first during which such contravention continues, subject to a maximum of ...".
So the first day carries the base amount alone. From the second day onward, Rs 100 is added for each day. The total stops at the stated maximum.
Example (10(1)). Lakeview LLP has only one individual designated partner after a resignation and does nothing for 30 days. Counting the first day at Rs 10,000 and each of the next 29 days at Rs 100, the LLP's penalty is Rs 10,000 plus Rs 2,900, i.e. Rs 12,900, and the same measure applies to each partner under 10(1), up to their lower ceiling. Left unremedied, it grows until the ceiling of Rs 1 lakh for the LLP is reached, and Rs 50,000 for each partner.
Example (10(2)). Nisha is appointed designated partner on 1 March, but the LLP files her particulars 40 days late. The base is Rs 5,000 plus Rs 100 for each day after the first. The sums are done per day, up to Rs 50,000 for the LLP and Rs 25,000 for each designated partner.
Two reading notes. First, the sub-sections say "penalty", and the text does not describe the process for imposing it; how penalties are imposed is dealt with in other parts of the Act. Second, the clean text does not state whether a contravention that has been put right still attracts the amount accrued up to that day, so treat accrued days as payable and check the official text if the point matters.
What changed in 2021
| Point | Before the 2021 Act | Now |
|---|---|---|
| Heading | "Punishment for contravention of sections 7, 8 and 9" | Figure "8" omitted (footnote 18 to the clean text) |
| 10(1) | "Punishable with fine which shall not be less than ten thousand rupees, but which may extend to five lakh rupees" | Penalty as above, with a daily addition and caps |
| 10(2) | One sub-section: contravention of sub-sections (4) and (5) of section 7, section 8 or section 9: fine of not less than ten thousand rupees but up to one lakh rupees, on the LLP and every partner | Replaced by 10(2) and 10(3) as above |
Section 8 now lies outside section 10's list, but section 8(b) still makes a designated partner liable to penalties imposed on the LLP. See the article on sections 8 and 9.
Practical points
- Fill any designated partner vacancy within thirty days (section 9), so that 10(3) does not start.
- File the designated partner's particulars within thirty days of appointment (7(4)), to avoid 10(2).
- Note that under 10(1) and 10(3) the penalty reaches every partner, so partners who are not designated partners are exposed too.
- For a wider list of penalty provisions, our overview Penalty Provisions Under LLP Act: Complete List can help; always confirm the amount against the section.
Need help with a penalty or default?
If your LLP has missed a designated partner requirement, the amounts grow each day, so early action matters. Our legal consultation team can review the position, help bring the filings up to date and discuss next steps with you.
Key takeaways
- 10(1): breach of 7(1), Rs 10,000 plus Rs 100 a day after the first, up to Rs 1 lakh (LLP) and Rs 50,000 (each partner).
- 10(2): breach of 7(4), Rs 5,000 plus Rs 100 a day, up to Rs 50,000 (LLP) and Rs 25,000 (each designated partner).
- 10(3): breach of 7(5) or section 9, Rs 10,000 plus Rs 100 a day, up to Rs 1 lakh (LLP) and Rs 50,000 (each partner).
- The 2021 Act turned "fine" into "penalty" and removed section 8 from the heading.
- Early correction limits the daily addition.
Read next
- Section 7: designated partners
- Sections 8 and 9: liabilities of and changes in designated partners
- Penalty Provisions Under LLP Act: Complete List
- ROC Penalties for LLP: Complete List with Amounts
Disclaimer: Based on the Limited Liability Partnership Act, 2008 as amended by the Limited Liability Partnership (Amendment) Act, 2021, as consulted on 1 October 2026. Forms, fees and procedure are set by the LLP Rules, 2009 as amended from time to time. This article is general information, not legal advice; check the official text before acting.