by CS Arpit Garg
Limited Liability Partnership (LLP) have a separate legal entity and are registered by MCA. In order to remain active in the Registrar of Companies (ROC), every LLP have to complete the annual compliance to avoid default status and penal provisions.
Every LLP is required to file FORM-11 Annual Return within 60 days of closing of Financial Year i.e. 30 May and FORM-8 Statement of Accounts and Solvency within 30 days of end of 6 months from closing of FY i.e. 30 October and Income Tax Return.
Annual Return for LLP
Annual Return for LLP is filed in Form-11, It contains details of Partners, Designated Partners, Turnover of the LLP, Compounding of Offences etc. It is a mandatory form which has to be filed by every LLP on or before 30 May every year.
Statement of Accounts
Statement of Accounts is filed in Form-8, In preparation of Statement of Accounts each year as on 31st March, LLP Form 8 is required to be deposited with the ROC on or before 30th October annually. Moreover, LLP’s whose yearly turnover exceeds Rs. 40 lakh or contribution exceeds Rs. 25 Lakhs are required to get their financial accounts Audited by a Practicing Chartered Accountant.
Income Tax Return
Every LLP has to file Income Tax Returns every year. The last date of filing of return for LLP is 31st July every year. However, any LLP under tax audit is required to file its Income tax return by 30th September.
Audit under Income-tax Act: Every LLP whose turnover exceeds INR 2 Cr. in case of a business or INR 50 Lakh in case of a profession, is required to get its books of accounts tax audited under section 44AB of the Income-tax Act. Such audit will have to be completed and filed by 30th September.
Advantages of Completing Annual Filings for LLP
- Reputation– By complying with the requirements of the Registrar of Companies and the Ministry of Corporate Affairs, the LLP and partners will increase their reputation in the eyes of the public. Through this process an LLP can increase its compliance requirements. More investors would be willing to invest in an LLP that complies with the requirements of the law.
- Compliance- By filing all compliances within a particular period of time, the LLP would be free from any form of compliance requirements. By considering this, an LLP can fulfil its objectives.
- Less Burdens- By complying with the requirements of the authorities, the LLPs would face lesser burden when it comes to compliance requirements. If compliances are not followed up or filed by the LLP, it can be detrimental to the development of the LLP. Hence it is crucial that all the requirements related to compliance are followed by the partners of the LLP.
For any queries contact
CS Arpit Garg
Practicing Company Secretary & Founder Compliance Arena
8447773833