Introduction
Every Limited Liability Partnership (LLP) registered under the LLP Act 2008 is required to file an Annual Return and Statement of Accounts for every Financial Year. Annual Compliances of LLP, being filed once in a year is compulsory to be filed with the department of company registration. Irrespective of the ongoing business of LLP, the annual compliances of LLP must be complied with.
What do you mean by Limited Liability Partnership?
Limited Liability Partnership (LLP) is a corporate business entity that allows professional expertise and entrepreneurial initiative to combine and operate in a flexible, innovative and efficient manner. Under LLP, the benefits of the company i.e. limited liability and flexibility for organizing internal structure as a partnership can be enjoyed both at the same time. Let us now dive more into the article to know “annual compliances of llp”.
ROC Annual Compliance for LLP
Annual Compliances of LLP is divided into two parts, namely:-
1. Filing of LLP Annual Return
Annual Return of LLP is to be filed in Form 11 as this form contains the summary of the management affairs of the LLP including the names of partners and their names. Form 11 must be filed within 60 days of the closure of every financial year. Thus, every LLP is expected to file its annual return on or before 30th may of the financial year.
Where the annual turnover of LLP crosses Rs. 5 crores or the capital contribution from partners exceeds more than Rs. 50 Lakhs, the Annual Return must be accompanied by a Certificate from Practising Company Secretary.
2. Filing of Statement of the Accounts or Financial Statements
Secondly, all the LLPs are required to maintain their Books of Accounts in Double Entry System. Along with it, a Statement of solvency (Accounts) must be prepared before the year ending on 31st March. Therefore, filing of statements of the accounts or financials is done in Form 8 on or before 30th October every year.
Where the annual turnover of LLP exceeds Rs. 40 Lakhs or whose contribution exceeds Rs. 25 lakhs, then accounts of that LLP shall be necessarily be audited by a qualified Chartered Accountant (CA).
If in case you missed the annual compliances of LLP then be ready to pay the penalty for non-filing of these forms with ROC which is Rs. 100 per day per form.
Filing of Income Tax Returns
Not to forget, filing of income tax return. Every LLP being a taxpayer under the Income Tax regime is also expected to pay ITR. So, every llp is required to close its financial year on 31st March every year and file their ITR with Income Tax Department.
Thus, If your LLP has annual turnover exceeding Rs. 40 lakhs or capital contribution exceeding Rs. 25 lakhs then accounts of LLP shall be audited under the provisions of the Income Tax Act. Also, it must be noted that maintenance of books of accounts is mandatory for every LLP irrespective of annual turnover of LLP.
So, LLP shall file its Income Tax Return through online mode by attaching the digital signature certificate (DSC) where the accounts need to be audited under section 44AB of the IT Act.
| PARTICULARS | DUE DATES |
| LLP whose accounts need to be audited under the Income tax Act or under any other law | September 30 of the assessment year |
| LLP which is required to furnish a report in Form No. 3CEB under Section 92E of Income Tax Act | November 30 of the assessment year |
| In any other case | July 31 of the assessment year |
Event Based Compliances for LLP
Along with some of the annual compliances of LLP, there are some of the event-based compliances for LLP which are as follows:-
- Consent & Particulars of Partner/Designated Partner
Filing of consent of partner/designated partner to act as such with the Registrar of Companies (ROC) in eForm-4 within 30 days of the appointment as the designated partner.
The LLP and all its partners shall be punishable with fine which shall not be less than Rs. 10,000 and may extend to Rs.5,00,000.
- Vacancy of Designated Partner
Filing of vacancy in Designated Partner within 30 days of vacancy and intimation of same to Registrar in eForm-4 and in case if no designated partner being appointed or if any time there is only one designated partner then each partner shall be deemed to be the designated partner.
The LLP and all its partner shall be punishable with fine which shall not be less than Rs. 10,000 and may extend to Rs. 5,00,000.
- Change of Registered Office
File the notice of any change in registered office with the Registrar of Companies in eForm 15 within 30 days of shifting any such change shall take effect only such filing.
The LLP and all its partners shall be punishable with fine which shall not be less than Rs. 2,000 and may extend to Rs. 25,000.
- Change of Name
LLP may change its name registered with the Registrar by filing with the Registrar notice of such change in eForm 5 within 30 days of such change.
Person guilty of offence shall be punishable with fine which may extend to Rs.5,00,000 but which shall not be less than Rs.50,000 and with a further fine that may extend to Rs. 50 for everyday after the first day after which the default continues.
- LLP Agreement & Changes therein
LLP Agreement and any changes made therein shall be filed with the Registrar in eForm 3 within 30 days of incorporation of LLP or such alteration of LLP agreement.
The LLP and every designated partner of the LLP shall be punishable with fine which shall not be less than Rs.2,000 and may extend to Rs.25,000.
- Change in Designated Partners
Where a person becomes or ceases to be a partner or where there is any change in the name or address of a partner, notice of the same signed by the designated partner to be filed within 30 days to the Registrar in eForm 4.
The LLP and every designated partner of LLP shall be punishable with fine which shall not be less than Rs.2,000 and may extend to Rs.25,000.
The Bottom Line
This was about the annual compliances of LLP and event-based compliances which every llp is obliged to adhere to. To know more about llp and its compliances, stay tuned with EAdvisors and keep learning with us.
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