Annual Compliance of LLP under Companies Act
A Limited Liability Partnership or LLP is a legal entity that incorporates the goodness of a partnership firm and a corporation. In this type of partnership, the partners have limited liabilities which mean that the partners are not required to pay off the debts of the company using their personal assets and at the same time, the individual partners are not responsible for another partner’s misconduct or negligence.
LLP Annual Compliance
A. Filing of the Statement of Account and Solvency:
1- Fill up in the prescribed format as per LLP Form 8
2- It is compulsory for all LLPs to maintain the Book of Accounts as per Double Entry method. Form 8 contains a declaration on the solvency state of the LLP by its designated partners as well as gives details of the statement of assets and liabilities and statement of income and expenditure of the LLP.
3- The form 8 needs to be signed by the partners and requires to be certified by a practicing chartered accountant, company secretary or cost accountant.
4- This is required to be filed within 30 days from the end of six months of the close of the financial year that is by 30th October of each financial year.
5- LLPs with a turnover of more than Rs. 40 lakh or the ones with the contribution of more than Rs. 25 lakh need to get their books of accounts audited by an active chartered accountant.
B. Annual Return Filing
1- The return needs to be filed with the Registrar of Companies.
2- Fill up using the prescribed format - LLP Form 11
3- This is required to be filed within 60 days from the close of the financial year, in other words by 30th May of each year.
C. Filing of Income Tax Return
1- LLPs are required to file their income tax return using Form ITR 5 – it can be downloaded or filed online using the digital signature of the designated partners.
2- As per the Income Tax Act, all LLPs are required to close their financial year by the 31st of March and accordingly file the returns with the IT Department.
3- LLPs with an annual turnover of more than Rs. 60 lakh need to get their books audited and file their return latest by 30th September every year.
4- LLPs whose accounts are not required to be audited need to file their returns latest by 31st July each year.
5- LLPs that have got engaged in international transactions or have undertaken specific domestic transactions have to file Form 3CEB.The form needs to be certified by a qualified chartered accountant and is to be submitted by 30th November of each year.
Failure to file the Agreement within the stipulated period is liable to be fined at the rate of Rs. 100 per day of default with no upper limit to it.
1- Other than the above, the LLP is required to apply for the LLP PAN and TAN
2- Open LLP Bank Account
3- Purchase the LLP seal and have LLP stationery prepared post incorporation.
Important: Please note that the information on this page / site is provided as general information for better understanding for the user and does not constitute tax, legal, or other professional advice and must not be used as such. Please consult your professional adviser(s) if you have any questions / doubts regarding the above.