Annual Compliance Filed By An LLP | Ebizfiling


 

Introduction

All Limited Liability Partnerships (LLP) that are registered in India must comply with certain annual compliances that are specified by the Ministry of Corporate Affairs (MCA). An LLP should also comply with the requirement of Income Tax Filings and the Registrar of Companies (ROC). In this blog, we will discuss all the required annual compliance filed by LLP.

 

What Limited Liability Partnership?

 

An LLP is a hybrid form of business entity. The partners of an LLP enjoy the benefits of limited liability like companies and the flexibility of a partnership. It is governed by the Limited Liability Partnership Act, 2008. The existence of an LLP cannot be affected from the death or removal of any partner. Every year an LLP needs to comply with LLP Annual filing.

 

Annual compliance filed by an LLP

 

Once you incorporate an LLP, there are certain annual compliance to be filed annually. The required annual compliance by a Limited Liability Partnership is listed below in a tabular form.

 

Sr. No.

Form name

Description

To be filed with

Due date

1

Statement of Accounts and Solvency in LLP Form 8

An LLP should prepare and close its account by 31st March of every year. As per the LLP (2nd Amendment) rules 2022, the interim resolution professionals can sign Statement of Accounts and Solvency on the behalf of an LLP.

ROC

It is to be filed by at least two Designated Partners within 30 days after completion of six months of the financial year.

2

Annual return in LLP Form 11

Form 11 is a summary of all the designated partners to know if there is any change in the management or not.

ROC

Within 60 days from the closure of the financial year.

3

Income tax return

Every LLP has to file Income Tax Returns every year.

Income tax Department.

The last date to file ITR is 31st July (or 30th September, if tax audit is mandatory)  

 

4

DIR 3 KYC

This form is filed by each designated partner of the LLP.

ROC

It should be filed on or before 30th September.

 

Important note- It should be noted that an LLPs whose annual turnover is at least Rs. 40 lakhs or contributions is at least Rs. 25 lakhs are obliged to get their financial records audited.

 

Penalties for non-compliance

 

If an LLP fails to comply with annual compliances, then they will be liable to pay penalties. If there is a delay in filing Form 8 and 11, they will have to pay the penalty of Rs. 100 per day for the default. No LLP (Limited Liability Partnership) can close wind up until they file annual accounts.

 

Wrap-up
 

It is the duty of the Designated Partners of an LLP to maintain a proper book of accounts and file an annual return with the MCA every financial year. Hence it is advisable that you should file Form 8, Form 11, and other forms before the due dates to avoid paying penalties.

 

 

Comments

Post a Comment

Popular posts from this blog

All About ITR 6 Company Annual Filing | Ebizfiling

Image
    Introduction     If a company does not eligible for an exemption under Section 11 of the Income Tax Act of 1961, it must file an ITR 6 Form electronically to file its income tax returns. It is an annual compliance for a Private Limited Company . The companies that receive income from real estate held for charitable or religious purposes are eligible to seek an exemption under Section 11 ((Income from property held for charitable or religious purposes) of the Income-tax Rules. Therefore, companies that do not claim tax exemption under section 11 have to file an ITR 6.       What is ITR 6 form?     The ITR 6 form is an electric form filed by companies that do not claim an exemption under section 11 of the Income Tax Rules. It is a form that represents the company's income and expenses for the specific year. It is a mandatory compliance that a Private Limited Company has to file annually.     Who is qualified for filing ITR 6 form?     The following are eligible for filing ITR 6 f
Read more

How Professional Employer Organizations (PEO) are helpful for new emerging start-ups?

Image
  Introduction      Professional Employer Organizations (PEO) with experience in the local markets can assist the business to improve and grow. A person who wants to expand a freshly formed business in a foreign country needs some time to do market research, understand local consumer trends, and get to know the demands of the public. A PEO functions under the co-employment idea, which enables you to delegate tasks to multiple companies. In this blog, we will talk about- How PEO benefits your start-up?   What is a PEO (Professional Employer Organization)?      A full-service co-employment human resource outsourcing structure is referred to as a PEO ( Professional Employer Organization ). They usually act as professional employers for the employees of their clients.  When the client company reports its salary using the PEO's federal employer identification number (FEIN), employee obligation is transferred to the PEO.  In this arrangement, the PEO oversees payroll and other administra
Read more