Small Limited Liability Partnership [Section 2(ta)]
## Small Limited Liability Partnership (Small LLP)
A newer concept inserted in the LLP Act to give compliance relief to genuinely small LLPs. Defined in Section 2(ta).
### Definition – Section 2(ta)
A 'Small LLP' is an LLP that satisfies either of the following thresholds (and any other prescribed conditions):
Criterion
Threshold
May be raised by notification up to
Contribution
does not exceed ₹25,00,000
₹5 crore
Turnover (as per the Statement of Accounts & Solvency for the immediately preceding F.Y.)
does not exceed ₹40,00,000
₹50 crore
OR
meets such other requirements as prescribed
—
### Why the concept matters
The 'Small LLP' category enjoys reduced filing fees, lighter penalties for procedural defaults and simpler compliance — analogous to the 'small company' concept under the Companies Act, 2013. This recognises that micro and small businesses should not be burdened with full-scale corporate compliance.
### Memory hook
Contribution ₹25 lakh | Turnover ₹40 lakh — both are upper limits of the base test.
The Government can increase the bar — never decrease it below the statutory floor.
Worked example
### Example 1
Q. ABC LLP has a contribution of ₹20 lakh and turnover (last F.Y.) of ₹45 lakh. Is it a Small LLP?
A. No. Both limits must be satisfied. The turnover (₹45 lakh) exceeds the statutory threshold of ₹40 lakh, so it does not qualify — even though the contribution is within limits.
### Example 2
Q. The Central Government, by notification, raises the contribution limit to ₹2 crore. PQR LLP has contribution ₹1.5 crore and turnover ₹30 lakh. Is it a Small LLP?
A. Yes. Both limits — as amended/notified — are satisfied (contribution ≤ ₹2 cr; turnover ≤ ₹40 lakh).
⚠️ Common exam mistakes
Reading the section as 'either threshold suffices' — both the contribution and the turnover tests must be met.
Quoting the higher prescribed ceilings (₹5 cr / ₹50 cr) as the current thresholds — these are only the maximum to which the Government may raise the limits.
Bare-Act text Section 2(1)(ta) · Limited Liability Partnership Act, 2008 · click to expand
'Small limited liability partnership' means a limited liability partnership — (i) the contribution of which, does not exceed twenty-five lakh rupees or such higher amount, not exceeding five crore rupees, as may be prescribed; and (ii) the turnover of which, as per the Statement of Accounts and Solvency for the immediately preceding financial year, does not exceed forty lakh rupees or such higher amount, not exceeding fifty crore rupees, as may be prescribed; or (iii) which meets such other requirements as may be prescribed, and fulfils such terms and conditions as may be prescribed.