Annual Compliance for Startups with Nil or Negligible turnover
Turnover upto 10 lakh Turnover
Turnover above 25 Lakh / 1 Crore with tax Audit
Statement of Account & Solvency-Form 8 Annual Return-Form 11
Form 12 ( Form for intimating other address for service of documents) is to be filed for giving additional address to the Registrar for the purpose of service of documents.
Form 22- filed to inform Registrar about the order received by the LLP/ FLLP. Form 23 -Application for direction to Limited Liability Partnership (LLP) to change its name Form 25 is required to be filed to Registrar to reserve the name of foreign LLP or foreign company
LLPs can do e-Filing in following ways: - The Designated partner (DP) (in case of LLP) or authorised representative (AR) (in case of Foreign Limited Liability Partnership (FLLP)) can upload the e-Forms on the LLP portal at his convenience from his office/ home. .
Annual Compliance for LLP Limited Liability Partnership
All the Limited Liability Partnership’s (LLP) Registered under the LLP Act 2008 are required to file the following returns mandatorily whether the LLP do business or not.
A. FILING WITH REGISTRAR OF LLP
1. Filing of Annual Return
An LLP is required to file the Annual Return with the Registrar of LLP (Form 11) within 60 days of closure of its financial year. An LLP has to close its financial year on every 31st March. So, the Annual Return is to be filed on or before 30th May every year.
2. Filing of Annual Accounts
Every LLP has to maintain books of accounts as per double entry system of accounting and prepare a Statement of Accounts and Solvency (Accounts) every year ending on 31st March. LLP has to file such Accounts to the Registrar of LLP (Form 8) within 30 days from the end of 6 months of such financial year. So, the filing of Accounts is to be filed on or before 30th October every year.
In case of an LLP whose annual turnover exceeds Rs.40 lakhs or whose contribution exceeds Rs.25 lakhs, shall be required to get its accounts audited by a Chartered Accountant.
B. INCOME TAX
As per Income Tax Act, LLP has to close its financial year as on 31st March every year and has to file the returns with Income Tax Department.
In case of LLP whose annual turnover is more than Rs.100 Lakhs, the accounts have to be audited as required under Income Tax Act as well.
A LLP have to file its Income tax Returns on or before the due dates as follows:
LLP whose accounts are not required to be audited under any Law
31st July of every year
LLP whose accounts are subject to Audit under any Law
30th September of every year or such other date as may be notified by the Income Tax authorities.
Procedure For Annual Compalince fulfilment
NEED FOR ANNUAL COMPLAINCE
A person may cease to be a partner in accordance with the agreement or in the absence of agreement, by giving 30 days notice to the other partners. A person shall also cease to be a partner of a limited liability partnership- (a) on his death or dissolution of the limited liability partnership; or (b) if he is declared to be of unsound mind by a competent court; or (c) if he has applied to be adjudged as an insolvent or declared as an insolvent. Notice is required to be given to ROC when a person becomes or ceases to be partner or for any change in partners.
An LLP shall be under obligation to maintain annual accounts reflecting true and fair view of its state of affairs. A “Statement of Accounts and Solvency” in prescribed form shall be filed by every LLP with the Registrar every year.
Audit of LLPs shall be mandatory. However a more simplified compliance regime for small LLPs is being proposed by exempting such LLPs from the requirement of audit by exemption through notification by the Central Government.
Every LLP would be required to file with ROC, every year, an Annual Return, contents of which would be prescribed under rules.
Persons, who subscribed to the “Incorporation Document” at the time of incorporation of LLP, shall be partners of LLP. Subsequent to incorporation, new partners can be admitted in the LLP as per conditions and requirements of LLP Agreement.
Every partner shall inform the LLP of any change in his name or address within a period of fifteen days of such change. The LLP, in turn, would be under obligation to file such details with the Registrar within thirty days of such change.
The following documents/information will be available for inspection by any person:- · Incorporation document, · Names of partners and changes, if any, made therein, · Statement of Account and Solvency · Annual Return The manner and fees for such inspection shall be prescribed in the rules.
Provisions of clauses 60 to 62 of the Act provide for the manner in which compromises or arrangements including mergers and amalgamations involving LLPs shall be allowed.
It is proposed to provide the provisions and procedures required to be complied with when the affairs of an LLP are to be wound-up and dissolved, by enabling the Central Government to make rules under the LLP Act, 2008.