The legal requirement
1. A Limited Liability Partnership (LLP) shall lodge with the Registrar a declaration by one of its managers, that in that manager’s opinion, the LLP either
a) appears, at that date, to be able to pay its debts as they become due in the normal course of business; or
b) does not appear, at that date, to be able to pay its debts as they become due in the normal course of business.
2. The declaration must be lodged by the Manager not later than 15 months after the registration of the LLP and subsequently once in every calendar year, at intervals of not more than 15 months.
3. This is part of the legislative principle of corporate disclosure accountability and transparency that is imposed on a LLP which enjoys limited liability. Members of the public, including creditors and other interested parties will have regular access to the financial position and status of the LLP.
4. Section 24(3) of the LLP Act states that “…the Registrar may, on application by a LLP and if he thinks fit, grant an extension of time for the lodging of the declaration”.
5. The law requires that a LLP must lodge its Annual Declaration on time. Therefore, we will generally not grant not more than 3 months extension of time.
Guidelines on application
1. A LLP can apply online for an Extension of Time of up to 3 months via BizFile.
Step 1: At the BizFile homepage menu, select the transaction “Annual Filing" under the transaction group "Limited Liability Partnership”
Step 2: Select the transaction “Extension for Time under S24 (3)”
2. The application fees range from $50 to $150 ($50 for 1 month, $100 for 2 months and $150 for 3 months). Please note that the application fees are non-refundable.
3. An application must be made before the due date for filing the Annual Declaration. Late applications shall not be considered.
4. This is a one-time application for extension. If the application is approved, you cannot apply for extension of time, under section 24 in the same calendar year again. Before making the application, please consider carefully how much time is needed for you to comply with the requirements of the LLP Act. You may wish to consult your professional advisers, if in doubt.
5. The reasons for requesting more time must be stated in your application for the extension of time.
Who can apply?
- Manager/Partner of the LLP
- Professional firm on behalf of the LLP
- Service Bureau on behalf of the LLP
The estimated processing time for all online applications is one working day. You can check the status of your application online via BizFile under the heading “Transaction Status Enquiry”, followed by “Enquiry on Application for Extension of Time under S24(3)”.