For a Limited Liability Partnership (LLP), regular filing of returns is essential to uphold LLP compliance standards and steer clear of substantial penalties for non-compliance. LLPs benefit from a relatively lighter annual compliance burden compared to private limited companies. Nevertheless, the potential fines for non-compliance can be significant. While a Private Limited company might face penalties of INR 1 lakh for non-compliance, LLPs could incur penalties of up to INR 5 lakh. At SRN Filings, we understand the critical importance of adhering to these annual compliances of LLP requirements, and our services are tailored to assist LLPs in meeting their obligations efficiently and effectively.
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Limited Liability Partnerships (LLPs) are recognized as separate legal entities, and therefore, they are bound by specific compliance obligations. The responsibility for ensuring compliance rests with the Designated Partners of the LLP. The key LLP compliance requirements for LLPs include the following:
Ensuring annual compliance of the LLP with these obligations not only maintains the legal status of the LLP but also helps in building transparency, credibility, and financial accountability.
In LLP annual filing, one must diligently maintain accurate and up-to-date financial records. These records should encompass details of the LLP’s financial transactions, profits, expenses, assets, and liabilities. Proper bookkeeping is crucial to assess the financial health and performance of the LLP.
LLPs are required to file an annual return with the Ministry of Corporate Affairs for each financial year. This annual return is submitted using Form 11, and it provides essential information. This form gathers essential details about the LLP, including the total number of designated partners, comprehensive partner information, contributions received by partners, and a summary of all partners involved.
All LLPs are required to submit Form 11 within 60 days after the conclusion of the financial year. This means that Form 11 should be filed by May 30th each year.
It’s crucial for LLPs to adhere to this deadline, as failure to do so can have consequences. One significant implication is that an LLP will not be permitted to close or wind up its operations until it has filed all its annual returns, including Form 11.
In the event that an LLP neglects to submit its LLP annual filing forms within the stipulated timeframe, it will incur a penalty of Rs.100 for each day of delay performed.
The penalty will be applicable from the due date of filing the return and will continue until the actual return is filed.
LLPs must submit a Statement of Accounts & Solvency annually, which details the financial position of the LLP, including its assets and liabilities. This statement is filed using Form 8.
LLPs are required to file Form 8 within 30 days from the conclusion of six months after the financial year ends. This means that Form 8 should be filed within this timeframe to maintain LLP compliance.
Form 8 can be digitally signed by two designated partners of the LLP. Additionally, it must be certified by a company secretary, chartered accountant, or cost accountant.
It’s essential for LLPs to adhere to the filing timeline for Form 8. Failure to file this form on time can result in penalties, specifically a daily fine of Rs.100.
Ensuring LLP’s annual Compliance with the filing requirements outlined in Form 8 is vital to maintaining good standing and avoiding financial penalties.
Limited Liability Partnerships (LLPs) are subject to specific audit and tax filing obligations as per the provisions of the Limited Liability Partnership Act 2008, and the Income Tax Act, 1961. Here are the key requirements:
Audit Requirement: LLPs with an annual turnover exceeding Rs. 40 lakhs or a contribution surpassing Rs. 25 lakhs are obligated to have their books of account audited by practicing Chartered Accountants. The deadline for filing the tax return for such LLPs is September 30th.
Note: From Assessment Year 2021-22 (Financial Year 2020-21) onwards, the threshold limit for a tax audit has been raised to Rs. 5 crore under certain conditions. This applies if the taxpayer’s cash receipts constitute less than 5% of the gross receipts or turnover and if cash payments are limited to 5% of the aggregate payments as per the Income Tax Act 1961.
For LLPs not required to undergo a tax audit, the due date for tax filing is July 31st.
LLPs that have engaged in international transactions with associated enterprises or have undertaken Specified Domestic Transactions must file Form 3CEB. This form should be certified by a practicing Chartered Accountant. The deadline for LLPs obliged to file Form 3CEB is November 30th.
Compliance with these audit and tax filing requirements is essential for LLPs to fulfill their legal obligations and avoid penalties.
LLPs are also required to file their income tax return using Form ITR-5. The due date for ITR filing is July 31st unless the LLP is subject to a tax audit, in which case the deadline is extended to September 30th. The income tax return provides details of the LLP’s income, expenses, and tax liability.
LLP Annual Filing Compliance Calendar is given here for your quick reference:
| Form Type | Description | Due Date | To be filed with |
|---|---|---|---|
| Form-8 | Filing of Statement of Accounts | 30th October | Registrar of Companies |
| Form-11 | Filing of Annual Returns | 30th May | Registrar of Companies |
| ITR – 5 | Income Tax Return | 31st July (or 30th September, if tax audit is mandatory) | Income Tax Department |
| ITR – 5 | Income Tax Return | 31st July (or 30th September, if tax audit is mandatory) | Income Tax Department |
| Audit | Tax Audit (only if applicable) | 30th September | Income Tax Department |
The benefits of LLP annual compliance are listed as follows:
SRN Filings simplifies the LLP annual filing process by providing expert guidance and handling essential tasks. Our experts assist in preparing accurate documents, obtaining necessary digital signatures, and ensuring certification by qualified professionals. We emphasize timely filings to avoid penalties and maintain LLP annual compliance with regulations. Our streamlined approach allows you to focus on your business while we handle the paperwork, reducing the risk of non-compliance penalties. In a nutshell, SRN Filings makes the LLP annual filing straightforward and ensures your adherence to legal requirements with ease.
Get started now to streamline your LLP annual filings.
