LLP Annual Return Filings
Every LLP is mandated to file an annual return duly authenticated with the Registrar within sixty days of closure of its financial year. Filecrat helps you to get filing of Form 11 & Form 8 with ROC
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LLP Annual Filing
Every Limited Liability Partnership is mandated to file an annual return duly authenticated with the Registrar within sixty days of closure of its financial year. Filing of annual return is mandatory even if the LLP has faced losses in that financial year.
Every LLP also has to file a Statement of Accounts & Solvency every year. Non-compliance of filing these documents can lead to strict penalties.
Auditing of Financial Statements of LLP
When the annual turnover of LLP exceeds Rs. 40 lakhs or when the contribution exceeds Rs. 25 lakhs, then the LLP shall be required to get its accounts audited by a qualified Chartered Accountant which shall include the following:
- Balance Sheet
- Statement of Profit and Loss
- Cash Flow Statement
- Notes to Accounts
Required Annual Filings of LLP
Form 11 (Annual Return): LLPs require to file this form with the Registrar within 60 days of closure of its financial year. A financial year ends on March 31 which means Form 11 needs to be filed on or before May 30 every year.
Form 8 (Statement of Account and Solvency): Form 8 is required to file with the Registrar within 30 days from the end of 6 months of the financial year to which the Statement of Account and Solvency relates, which means it needs to be filed on or before October 30 every year with digital signatures of two partners and certification by any practicing CA/ CS.
ITR-5: LLPs must file their income tax return in Form ITR 5 with the help of digital signature of the designated partner.
When the LLP is not liable for audit under the Income tax Act, the Income tax Return should be filed on or before July 31 of every year; whereas, when LLP is to be audited under Income tax Act, the return should be filed on or before September 30 of every year. These deadlines may be changed by the authorities depending on the circumstances.
Consequences of non-compliance with annual filing
Additional Fee: Any document or return may be filed up to 300 days after its due date of filing on payment of additional fee of Rs 100 for every day of such delay.
Fine for non-filing of Form 8 and Form 11: Apart from the additional fees of Rs. 100 for every day of such delay, an LLP shall be punished with fine not less than Rs. 25,000/- but may extend to Rs. 5 lakhs for failing to file the Statement of Account and Solvency. Every designated partner of such LLP shall be punishable with fine not less than Rs 10,000/- but may extend to Rs. 1 lakh.
Winding up of LLP by the Tribunal: An LLP may be wound up by the Tribunal if the LLP has made a default in filing of Form 8 or Form 11 for any five consecutive financial years.
- For LLPs with annual turnover up to 50 lakhs
- Drafting of documents
- Filing of Form 11 with ROC
- Filing of Form 8 with ROC
- ROC Fees not included
- Audited Financial statements (which includes Balance sheet, Statement of Profit and Loss & Cash Flow Statement)
- Details of Partners and designated partners
- Disclosures under MSME Development Act, 2006
- Digital Signature Certificate of designated or authorized partner(s)
- Disclosure of Interest of partners in other entities
Every LLP is required to file ‘Statement of Accounts & Solvency’ annually which is the information related to assets & liabilities of LLP along with its income & expenditure. It is prescribed in LLP Form 8 which contains a declaration on the state of solvency of the LLP by the designated partners and also information related to statement of assets and liabilities and statement of income and expenditure of the LLP.
According to Limited Liability Partnership Act, 2008 there is no such provision of holding of annual general meeting.
According to section 7 of the Limited Liability Partnership Act, 2008 every LLP shall have at least 2 designated partners who are individuals and has given his consent to act as such and at least one of them shall be a resident in India. Every designated partner of an LLP shall obtain a Designated Partner Identification Number (DPIN).
Accounts of LLP shall be audited as per Rule 24(8) of LLP Rules, 2009 if:
- Its turnover exceeds Rs 40 lakhs
- Its contribution exceeds Rs 25 lakhs.
Foreign LLP shall within 30 days of establishing a place of business in India file with the Registrar Form 27 giving the particulars of incorporation of foreign LLP; full address of the registered office of the LLP in the country of its incorporation; full address of the office of the LLP in India; details of DPs/ partners of that foreign LLP; and details of at least two authorized representatives resident in India for complying with the provisions of LLP Act.
When a LLP is not carrying on any business or operation (a) for a period of 2 years or more and the Registrar has reasonable cause to believe the same, a suo motu action for striking off the name of LLP can be taken by the Registrar; or (b) for a period of 1 year or more and the LLP has made an application in Form 24 with the consent of all the partners to the Registrar and shall file overdue Returns in Form 8 and Form 11 enclosing therein a Statement of Account disclosing nil assets and nil liabilities and an affidavit signed by the designated partners.