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Section 10 of the Limited Liability Partnership Act, 2008: Penalty for Contravening Sections 7 to 9

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...

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October 1, 2026
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Last updated: October 2026Verified against: Government sources

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 at a glance

Sub-sectionContravention ofWho is liableBase penaltyFurther penaltyMaximum
10(1)Section 7(1)LLP and its every partnerRs 10,000Rs 100 for each day after the first, in case of continuing contraventionRs 1 lakh for the LLP; Rs 50,000 for every partner
10(2)Section 7(4)LLP and its every designated partnerRs 5,000Rs 100 for each day after the first, in case of continuing contraventionRs 50,000 for the LLP; Rs 25,000 for every designated partner
10(3)Section 7(5) or section 9LLP and its every partnerRs 10,000Rs 100 for each day after the first, in case of continuing contraventionRs 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

PointBefore the 2021 ActNow
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 partnerReplaced 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

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.

Quick recapKey facts & short answers

Key Facts About Section 10

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

What is the penalty for not having a resident designated partner?

That is a breach of 7(1). Under 10(1), the LLP and every partner are liable to a penalty of Rs 10,000 plus Rs 100 for each day after the first, up to Rs 1 lakh for the LLP and Rs 50,000 for every partner.

What if the designated partner's particulars are filed late?

Section 10(2) applies: Rs 5,000 plus Rs 100 for each day after the first, up to Rs 50,000 for the LLP and Rs 25,000 for each designated partner.

Section 10: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

That is a breach of 7(1). Under 10(1), the LLP and every partner are liable to a penalty of Rs 10,000 plus Rs 100 for each day after the first, up to Rs 1 lakh for the LLP and Rs 50,000 for every partner.

Section 10(2) applies: Rs 5,000 plus Rs 100 for each day after the first, up to Rs 50,000 for the LLP and Rs 25,000 for each designated partner.

Breach of section 9 falls under 10(3): Rs 10,000 plus Rs 100 per day after the first, with the same caps as 10(1).

No. The 2021 Act removed the figure "8" from the heading, and the new sub-sections name only sections 7 and 9.

The LLP and its every designated partner.

Yes. The earlier text said "punishable with fine".