At Ahuja & Ahuja Chartered Accountants, we understand that filing LLP annual returns and complying with all the mandatory requirements can be a daunting task. That’s why our team of experienced Chartered Accountants is here to assist you in completing all necessary filings and keeping you fully compliant with all regulations.
Our Team of Experts help our LLP customers from various industries successfully and timely file their Annual LLP Returns. We offer LLP Annual Report Filing Services pan India from our offices in Delhi, Noida and Gurgaon (Gurugram).
LLP Annual Filing Due Date
LLP Annual Filings are mandatory for all Limited Liability Partnerships (LLPs) irrespective of their turnover or number of transactions. Non-compliance can lead to hefty penalties and fines, making it important for all LLPs to file their returns and forms before the due date. Our expert team at Ahuja & Ahuja Chartered Accountants can help you complete your annual filings and stay fully compliant with all the mandatory provisions.
Compliance is crucial for Limited Liability Partnerships (LLPs) to avoid hefty penalties under the law. While LLPs have fewer compliance obligations than private limited companies, fines and penalties are high. Non-compliance could cost an LLP up to INR 5 lakhs, which is significantly more than the INR 1 lakh fine for private companies.
Designated partners are responsible for maintaining proper books of accounts and filing an annual return with the Ministry of Corporate Affairs (MCA) every year. LLPs are exempt from audit requirements if their annual turnover is less than forty lakh or if the contribution is below twenty-five lakh, simplifying the annual filing process.
LLPs in India must file their annual return within 60 days from the end of the financial year and their statement of accounts & solvency within 30 days from the end of six months of the closure of the financial year. Additionally, LLPs must file an income tax return annually. MAG provides complete LLP compliance services, including annual filing and income tax return filing.
Statements of Accounts and Solvency
All registered LLPs must keep proper books of accounts and submit financial data on profit and other business-related financial information in Form 8 annually. This form must be attested by designated partners and certified by a practicing chartered accountant, a company secretary, or a cost accountant. Failure to file the statement of accounts & solvency report within the prescribed time limit incurs a fine of INR 100 per day.
LLP Annual Return Form
Annual Returns are required to be filed in Form-11, which summarizes the management affairs of an LLP, including the number of partners and their names. Form 11 must be filed by May 30th every year and certified by a Company Secretary in whole-time practice if the total contribution of partners exceeds INR 50 lakhs or turnover exceeds INR 5 crores.
Filing and Audit Requirement under the Income Tax Act
LLPs with a turnover exceeding INR 40 lakhs or whose contribution exceeds INR 25 lakhs must have their books of accounts audited by a practicing CA. The deadline to file the income tax return for such LLPs is September 30th of the relevant assessment year. We provide expert assistance in LLP annual return online filing in Delhi, India.
WEB-BASED PROCESS OF FILING OF LLP ANNUAL FORMS
MCA has recently launched a new version (V3) for LLP Filings, which requires all LLP filings to be web-based. As a result, the LLP-11 and LLP-8 Forms, which are required to be filed as per section 35 of the LLP Act, 2008, read with rule 25 (1) of the LLP Rules, 2009, will also be web-based.
The process of filing annual returns by LLP to the Registrar of Companies (ROC) has been simplified through the web form LLP Form No. 11 and Form No. 8. It is not necessary to download a blank LLP-11 and LLP-8 e-form from the Portal; instead, LLPs can prepare the form directly on the MCA website as a web-based form. However, applicants must be registered as a business user at the MCA Portal before filing the web form.
It is important to note that filing of the Form will not be allowed if there is any LLP Form No.4 (Notice of appointment, cessation, change in name/address/designation of Designated partner or partner and consent to become a partner/ designated Partner) pending or if the fees have not been paid or if it is under processing in respect of the LLP.
About Web-based LLP-11
The web-based LLP-11 Form will pre-fill around 80% of the information, such as the names of partners/designated partners, the obligation of capital contribution of partners as per LLP-3, directorship of partners/DPs, etc. However, there are a few details that will need to be filled in manually, such as capital contributed by partners/DPs for the year ended on 31st March, address of police station, business classification (like business, service, etc.), compounding or penalties, if any, during the FY, and whether turnover exceeds five crores or not.
About Web-based LLP-8
Web-based LLP-8 Form is designed to simplify the process of filing financial information for LLPs. Similar to Form LLP 11, this online form is pre-filled with almost 80% of the necessary information by the system, while only the financial section needs to be filled out manually.
LLP Annual Return Filing Process
The process of filing the Web-based LLP-8 form is straightforward. First, the form must be completed in its entirety. Once it has been filled out, the user can submit it. After submitting the form, the user will receive an SMS and email containing an SRN (Service Request Number). The SRN number and the filled form will be available in the My Application tab. The form will also be automatically downloaded as a PDF file. If the download does not happen, the PDF file can be downloaded under “Download the PDF” from My Application against the SRN number.
To complete the filing process, the user must affix their Digital Signature Certificate (DSC) to the PDF form. After this, the signed form must be uploaded to the MCA Portal against the SRN. This is done by going to the My Application tab, selecting the relevant SRN, scrolling to the right, and clicking on the “Upload PDF” option. The user will then be prompted to upload the DSC affixed PDF document.
The LLP-8 form provides several benefits, including the fact that it is quicker and easier to file than traditional paper forms. Additionally, Limited Liability Partnerships (LLPs) have several significant benefits, such as being a separate legal entity from its partners, the ability to quickly transfer ownership, and the ability to raise funds from banks, partners, and NBFCs. However, to avoid hefty penalties, LLPs must comply with annual filings and other mandatory filings and compliances before the due date
Frequently Asked Questions About LLP Annual Filing Compliances:
What are the mandatory annual filing compliances for an LLP?
An LLP is required to file Form 8 and Form 11 annually. Form 8 is used to submit the Statement of Accounts and Solvency to the Registrar and must be filed within 30 days from the end of 6 months of the financial year ending (30th October). The annual return of an LLP is filed in LLP Form 11, and its due date is 60 days from the end of each financial year (30th May).
Does an LLP have to file its income tax return separately from its partners?
Yes, an LLP needs to file its income tax return separately from its partners as it is a separate legal entity.
When does an LLP need to be audited?
An LLP needs to get its accounts audited for the financial year in which its turnover exceeds Rs 40 lakhs, or its contribution exceeds Rs 25 lakhs.
What are the additional fees provisions for late filing of LLP Form 8 and LLP Form 11?
If an LLP fails to file Form 8 or 11 within its due date, Rs 100 will be charged additionally for each day of delay.
When do I need to file the statement of accounts and annual return of the LLP if it is incorporated at the end of the financial year?
An LLP can file its statement of accounts and annual return for an 18-month period for its first financial year filing. It means if an LLP is incorporated on or after the 1st day of October, it can close its financial year in the next year and file its forms accordingly.
Do I need to file the LLP annual forms even if the LLP has not conducted any business in a financial year?
Yes, the requirement of filing LLP Form 8 and 11 is mandatory, irrespective of whether the LLP has conducted any business or not.
What happens if an LLP fails to comply with the mandatory filing compliances?
An LLP may face penalties and fines for non-compliance. To avoid such consequences, it is always advisable to file all the returns and forms before the due date. At MAG, we assist our clients in staying compliant with all the provisions of filing the LLP annual return online and other mandatory filings and compliances. Our team of experts ensures timely and accurate filing to avoid hefty penalties.