Annual Compliance of LLP

Running a business with all necessary compliances is equally important as registering a business, whether in the form of Company or LLP. To bring more transparency, every LLPs registered with the Ministry of Corporate Affairs are required to follow all the necessary compliances. The LLP compliances depend on business activity. However, it is the responsibility of the partners of an LLP to make sure that all the necessary compliances are duly complied with.

Limited liability partnerships (LLPs) are required to meet fewer criteria for compliance on filing annual returns, in comparison to private limited companies. LLPs are required to provide information related to the statement of accounts, and returns, on an annual basis. Penalties, however, are huge for failure to comply. Entities that don't provide the requisite information are fined heavily, with penalties that can go up to Rs. 5 lakhs.

Rietway Consultants Private LLP Compliance Package

The Services which are included in our package are as Follows:
✅ Preparation of Financial Statements
✅ Annual Report
✅Partner’s KYC
✅ Income Tax Return of LLP
✅ Filing of Form LLP 8
✅ Filing of Form LLP 11

Documents Required for LLP Compliances

1. Certificate of LLP
2. LLP Agreement
3. Digital Signatures of Partners
4. Bank Statement of Company

LLP Compliances Procedure

Step -1 Arrange all Required Documents: The first step is to arrange all the documents and send the same over the email / WhatsApp to us. Once all the Documents are Received, we will Start the Further Process.
Step-2: Preparation of Documents: The Next Step is Preparation of Documents to be Submitted at Department.
Step-3: Finalization of Balance Sheet and ITR: The Next Step is Finalization of Balance Sheet and ITR to be submitted.
Step-4: Preparation of Notices and Board Minutes: The Next Step is Preparation of Notices and Board Minutes.
Step-5: Submission of Forms: The Next Step is Filing of Forms i.e ADT-1. AOC-4. MGT-7 to ROC.

What Are the Benefits of Filing Annual Compliances for LLPs?

1. Higher Credibility: Annual compliance provides for higher credibility to the organization for loan approvals or any other similar requirements.

2. Record of Financial Worth: Annual compliance filings by LLP’s provide records to other companies regarding their financial worth, which may result in new and interested investors.

3. Stays Active and No Penalties: With regular filings, LLPs are not declared as defunct, and stays active. Also, annual compliance filings are mandatory and hence involve penalties (additional fees) to LLPs, when they default on filings.

4. Conversion or Closure: Regular annual compliance filings facilitate easier conversion of Limited Liability Partnerships into other types of companies, as well as quicker resolutions in case of dissolution of partnerships.

What are the Checklist items for Filing of Annual Compliance?

Annual returns need to be filed with the Registrar of Companies.

Annual returns to be filed as per the prescribed format of LLP Form 11.

This is required to be filed within 60 days from the close of the financial year, or the 30th of May of each year.

The LLP annual compliance has to be met by each and every registered LLP even if there is no business activity. In fact, it has to be met even if the LLP has been closed down and whether or not a business bank account exists.

What are the Documents Required Filing of Annual Compliance?

Form 8
You must file the Form 8 inside 30 days from the completion of 6 months after a financial year ends. Two designated partners can sign this form digitally. Also, a company secretary/chartered accountant/cost accountant must certify the same. There are 2 parts in a Form 8 -
Part A - The solvency statement.
Part B - Statement of expenditure & income, statement of accounts.
For not filing the Form 8 on time, a penalty of Rs 100 per day will be imposed.

Form 11
This form contains details such as the total number of designated partners, details of partners along with details of body corporates as partners, contributions received by the partners and summary of all partners. All LLPs must file the Form 11 within 60 days after the end of the financial year, along with the fee prescribed. Therefore, the LLPs should file their Form 11 by 30th May every year.
An LLP will not be allowed to close or wind up till it files all its annual returns. Therefore, all LLPs must file their annual returns on time, to avoid penalties.

GST Amendment – Changes to PAN

Q1. What is Annual Return?
Annual return is a mandatory filing to be made by all LLPs in India. The Annual return along with the required documents must be filed with the Ministry of Corporate Affairs.

Q2. What is the Statement of Accounts and Solvency?
The Statement of Accounts and Solvency is a mandatory filing that is required for all LLPs in India. The Statement of Accounts and Solvency contains a declaration on the state of solvency of the LLP by the designated partners and also information related to the statement of assets and liabilities and statement of income and expenditure of the LLP.

Q3. What is the Due Date of Filing of LLP Return?
The Annual return of an LLP is due within 60 days of close of financial year. Annual return of an LLP is due on or before May 30th of each financial year.

Q4. What is the Penalty for Not Filing LLP Annual Return?
Late filing or non-filing of LLP Annual Return or Statement of Accounts and Solvency before the due date will attract a penalty of Rs.100 for each day of default.