Annual Compliance for LLP
Annual Compliance for LLP :
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A Limited Liability Partnership enjoys a separate status. Thus, an organization needs to maintain its active status by regularly filing with the Ministry of Corporate Affairs (MCA). Annual compliance filing is mandatory for any LLP, whether having a business or not.
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Annual compliance for LLP requires filing two separate forms.
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1. Annual Return ( Form 11)
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2. Statement of Accounts and Solvency ( Form 8)
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These forms are filed for reporting the activities and financial data for each financial year in the upcoming year. The failure to fulfill LLP Annual Compliance requirements levies an additional fee of ₹ 100 each day of a delay till the actual date of filing. Hence, apart from the mandate, the heavy penalty compels the Designated Partners to fulfill the requirements.
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Mandatory Compliances For An LLP:
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Mandatory Compliances For An LLP
All the LLP registered with the MCA needs to file Annual Returns and Statement of Account for every financial year. The related details must be filed with the respective RoC.
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1. Filing LLP Annual Return
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It is mandatory for all Limited Liability Partnership to file an Annual Return with the Registrar within a period of 60 days of closure of the financial year in Form-11 and accompanied by such fee as may be prescribed under the LLP Act. That is, the Annual Return has to be filed on or before 30th May every year.
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2. Filing of Statement of Account & Solvency
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Every Limited Liability Partnership needs to prepare a Statement of Solvency (Accounts) every year ending on 31st March. For this purpose, LLP FORM-8 is filed with the Registrar of Companies on or before 30th October every year.
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3. Books of Account to be maintained by LLP
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LLP to maintain prescribed books of account. Bookkeeping can be on a cash or accrual basis. It should be prepared on a double-entry system of accounting. Books of Accounts to be preserved for 8 years.
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4. Income Tax Return filing by LLP
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Income Tax Return of LLP shall be filed by the LLPs every year on or before the due date. The form under which the income tax return is to be filed is ITR form 5. ITR form 5 can be used by the AOP, LLPs BOI, and firms as referred to in section 2(31)(vii) of the Income Tax Act. It is to be noted that the return of income shall be filed electronically through digital signature.
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5. LLP AUDIT REQUIREMENT LLP
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a. An LLP, in any financial year whose turnover exceeds 40 lakh rupees or whose contribution exceeds 25 lakh rupees, is required to get its accounts audited.
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b. The audit of LLP shall be done by a Chartered Accountant in Practice only.
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c. An auditor or auditors of a limited liability partnership shall be appointed for each financial year of the LLP for auditing its accounts.
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As you have already read the above process, which requires a lot of compliance for LLP, No worries, when TAX BARR is with you, our expert team will handle all those compliances for you to give you a peaceful experience.
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Documents required:
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PAN Card & COI
PAN Card and Certificate of
Incorporation of LLP
LLP Agreement
The LLP Agreement, along with any supplementary agreement, if any
Financial Statements
Financial Statement of LLP duly signed by the Designated Partners
Digital Signature
DSC of all Designated Partners
is required
