ANNUAL FILING OF LLP

ABOUT ANNUAL FILING OF LIMITED LIABILITY PARTNERSHIP

All LLPs registered with the Ministry of Corporate Affairs need to file Annual Returns and Statement of Accounts for every Financial Year. Unlike Companies, LLPs mandatorily have to maintain their financial year, as April 1st to March 31st. Therefore, LLP annual return is due on May 30th and the Statement of Account & Solvency is due on October 30th of each financial year. It is mandatory for a LLP to file a return irrespective of whether it has done any business.

ADVANTAGES

REDUCE PENALTY

This type of dissolution is done by holding a meeting approved by at least 2/3 of the creditors participating in the meeting. Then the management board must submit to the Commercial Register a request (in writing or electronic form via the company registration portal), the members dissolution resolution and the minutes of the general meeting. Winding up is a more elaborate process which is necessarily implemented when the company has assets and liabilities. In case of winding up a liquidator is to be appointed to manage the affairs of the wound up company.

PROPER COMPLIANCE

Striking off or removal of OPC through the Fast track exit scheme . When a company gains the status of a dormant company i.e. it has no activity as a company sine its inception or in the past one year it becomes a Defunct Company which can be wound up with a fast-track procedure which is through STK-2 form. Condition being that it should have no assets or liabilities. This can be filed by ROC or by the company itself. Strike off is done by the Registrar in accordance with the requirements of the Act.

BETTER DECISION MAKING

It is the responsibility of the Designated Partners to maintain proper book of accounts and file annual return with the MCA each financial year.

FORMS

LLP FORM 11

Form 11 contains details of the number of partners, total number of partners, total contribution received by all partners, details of body corporate as partners and summary of partners. All LLPs should file this form within 60 days from the closure of the financial year with the prescribed fee. Hence, the due date for filing LLP Form 11 is 30th of May each year.

LLP FORM 8

Form 8 must be filed within 30 days from the end of 6 months of the financial year along with some prescribed fee. This must be digitally signed by 2 designated partners and it must be certified by a chartered accountant/company secretary/cost accountant.

LLP TAX AUDIT

LLPs are separate legal entities. Therefore, it is the responsibility of the Designated Partners to maintain proper book of accounts and file annual return with the MCA each financial year. LLPs are not required to audit its accounts unless the annual turnover exceeds Rs.40 lakhs or if the contribution exceeds Rs.25 lakhs.

INCOME TAX RETURN FILING

LLPs must file income tax return using Form ITR 5. Form ITR 5 can be filed online through the income tax website using the digital signature of the designated partner. The deadline for LLP tax filing in India is July 31st if tax audit is not required. LLP whose turnover exceeded Rs. 40 Lakh or whose contribution exceeded Rs. 25 Lakh are required to get their accounts audited by a practising Chartered Accountant. The deadline for tax filing for LLP required to obtain audit is September 30th.

PENALTY

PROCESS

Annual Return Preparation

Prepare the Annual Return for LLP based on the financials and performance during the previous financial year.

Annual Return Verification

Once the Annual Return is prepared in the requisite format, the Client’s Finance Team can verify the prepared annual return and affix the digital signature.

Finalization

Once the Annual Return is prepared and verified, the Annual Return can be filed with the Ministry of Corporate Affairs along with the necessary attachments.