ROC Return Filling for LLP

ANNUAL FILLING OF LIMITED LIABILITY PARTNERSHIP

For a Limited Liability Partnership (LLP), the returns should be filed periodically for maintaining compliance and escape heavy penalty under the law for non-compliance. A Limited Liability Partnership has only few compliances to be followed every year which is amazingly low as compared to the compliance requirements placed on the private limited companies.

INTRODUCTION-COMPLIANCES BY LLP

Limited Liability Partnerships are separate legal entities; hence, it is the duty of the partners for maintaining a proper book of accounts and filing an annual return with the Ministry of Corporate Affairs (MCA) annually.

For a Limited Liability Partnership (LLP), regular filing of returns is essential to maintain compliance standards and avoid substantial penalties which can occur due to non-compliance. Limited Liability Partnerships (LLPs) have to deal with less annual compliances and paperwork as compared to private limited companies.

Limited Liability Partnerships are not required to audit their books of account except where their annual turnover is more than Rs.40 lakhs or if the contribution is more than Rs.25 lakh. Hence, an Hence, an LLP is not required to get their books of account audited if its satisfies above condition which makes annual filling process simpler.

LIMITED LIABILITY PARTNERSHIPS (LLPS) COMPLIANCE REQUIREMENTS

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 compliance requirements for LLPs include the following:

• Maintenance of Proper Book of Accounts
• Filing of Annual Return
• Filing of Statement of Accounts
• Filing of Income Tax Return (ITR - 5)
• Filing of Tax Audit (If Applicable)

Ensuring compliance with these obligations not only maintains the legal status of the LLP but also helps in building transparency, credibility, and financial accountability.

Benefits of LLP annual filing

The benefits of LLP annual Filing are listed as follows:

• Higher Credibility: Annual compliance enhances the organization's credibility, aiding in loan approvals and meeting various requirements.
• Record of Financial Worth: These filings create a financial track record for LLPs, attracting potential investors and partners.
• Stays Active and Penalty-Free: Consistent compliance keeps LLPs from being declared defunct, preventing penalties and additional fees.
• Conversion and Closure: Regular filings simplify the process of converting LLPs into other business structures and expedite partnership dissolution.

FILING OF ANNUAL RETURN - LLP FORM 1

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, Total contributions received by partners, summary of all partners involved and details of notices received towards Penalties imposed / compounding offenses committed during the financial year

FORM 11 DUE DATE

All LLPs are required to submit Form 11 within 60 days of closure of its financial year. This means that Form 11 should be filed on or before 30th May each year.

PENALTY FOR LATE FILING

If Form 11 is not filed by the LLP by the 30th of May, then Rs 100 will be levied as a penalty per day for delay. The amount can also increase over time as there is no cap on the penalty.

WHAT IS THE INFORMATION THAT NEEDS TO BE PROVIDED IN FORM 11?

Form 11 is a statement for partner information and all the contributions made. Additionally, the LLP also needs to provide information about other companies or LLPs in which the partners hold a similar position.

The contribution stated in Form 11 must match the declaration made in Form 8, and therefore it must be filled cautiously.

WHO NEEDS TO AUTHORISE FORM 11?

If the turnover does not exceed Rs 5 crores and the total partner contribution does not exceed Rs 50 lakh then only digital signatures of the designated partner will be required, Otherwise Form 11 needs to be certified by a Company Secretary in whole time practice.

FILING OF STATEMENT OF ACCOUNTS – LLP FORM 8

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.

DUE DATE

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 on or before 30th October every year to maintain compliance.

FORM COMPONENTS: FORM 8 CONSISTS OF TWO MAIN PARTS:

Part A - The Solvency Statement: This section provides a statement of the LLP's solvency, offering insights into its financial health and stability.

Part B - Statement of Expenditure & Income, Statement of Accounts: Part B contains detailed information about the LLP's income and expenses, along with a comprehensive statement of its accounts.

ATTACHMENTS TO FORM 8?

The following documents must be attached with Form 8:

• Disclosure under Micro, Small and Medium Enterprises (MSME) Development Act, 2006 is a mandatory attachment
• Statement of contingent liabilities to be attached in case any contingent liability exists.

SIGNING AND CERTIFICATION

Form 8 can be digitally signed by two designated partners of the LLP. Additionally, it must be certified by Company Secretary in whole time practice in case total obligation of contribution of partners of the LLP is greater than or equal to Rs. 50 lakhs or turnover of LLP greater than or equal to Rs. 5 crores.

AUDIT AND TAX FILING REQUIREMENTS FOR LLPS

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

TAX AUDIT

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.

TAX FILING DEADLINE (WITHOUT TAX AUDIT)

The due date for tax filing is July 31st for LLPs not required to audit and 30th September for LLPs on which audit is applicable.

INCOME TAX RETURN (ITR - 5)

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 September 30th.

LLP ANNUAL COMPLAINCES

FORM	LAST DATE	DESCRIPTION
FORM 11 (Annual Return)	30th May	Summary of management affairs of LLP
ITR-5 (Income Tax Return)	31st July	For LLP’s not required to do Tax Audit
ITR-5 (Income Tax Return)	30th September	For LLP’s required to do Tax Audit
FORM 8 (Statement of Accounts)	30th October	Details about profit made and other financial data

FREQUENTLY ASKED QUESTIONS (FAQ’S)

Q.What is the mandatory compliance for the LLP?

Ans.FORM 11- Annual Return

FORM 8- Financial Statements of LLP

ITR-5 – Income Tax Return Filling.

Q.If no business is undertaken during the year, would we still have to file the returns?

Ans.Yes, it is mandatory to file annual returns and financial statements with the Ministry of Corporate Affairs.

Q.What is the due date of FORM 11 and FORM 8?

Ans.Form 11 needs to be filed within 60 days from the closure of financial year i.e. Annual Returns have to be filed on or before 30th May every year.

Form 8 needs to be filed 30 days after completion of six months of Financial Year i.e. on or before 30th October every year.

Q.What is the penalty for delay in filling both forms?

Ans.Penalty of INR 100 per day till it complies is levied and you cannot even close or wind up your LLP without filing Annual Accounts.

Q.What is the Audit Requirement for LLPs?

Ans.LLP whose annual turnover exceeds Rs. 40 lakhs or whose contribution exceeds Rs. 25 lakhs are required to get their accounts audited.