Description

Annual Return of LLP

₹ 4,000/- (inclusive all)

  • Discussion and collection of basic Information
  • Provide Required
  • Documents Decide the due dates of filing
  • Drafting necessary documents
  • Filing of Annual Return (Form 11)
  • Filing of Statement of Accounts & Solvency (Form 8)

Documents Requirements

  • PAN Card & COI

PAN Card and Certificate of Incorporation of LLP

  • LLP Agreement

The LLP Agreement along with any supplementary agreement, if any

  • Financial Statements

Financial Statement of LLP duly signed by the Designated Partners

  • Digital Signature

DSC of all Designated Partners is required

Procedure

Day 1 – Collection

  • Discussion and collection of basic Information
  • Provide Required
  • Documents Decide the due dates of filing

Day 2-3 – Preparation

  • Drafting necessary documents

Day 4 onwards – Filing

  • Filing of Annual Return (Form 11)
  • Filing of Statement of Accounts & Solvency (Form 8)

Knowledge Portal

What is Annual Return of LLP ?

A Limited Liability Partnership enjoys a separate status. Thus, an organization needs to maintain its active status by regularly filing with the Ministry of Corporate Affairs (MCA). Annual compliance filing is mandatory for any LLP, whether having a business or not. Annual compliance for LLP requires filing two separate forms. One of which is for Annual Return, whereas another one is for Statement of Accounts and Solvency.

The forms are filed for reporting the activities and financial data for each financial year in the upcoming year. The failure to fulfill LLP Annual Compliance requirements levies an additional fee of ₹ 100 each day of a delay till the actual date of filing. Hence, apart from the mandate, the heavy penalty compels the Designated Partners to fulfill the requirements.

Advantages of Annual Return of LLP

1.Higher Credibility

Legal compliance is a primary requirement for any business. The status of LLP annual filing is displayed at the Master Data of the LLP on MCA portal and the same can be accessed by any person. For loan approvals or any other similar requirements, compliance is a major criterion to measure the credibility of the organization.

2.Record of Financial Worth

The forms filed by the LLP are accessible by companies. Hence, while entering into contracts or major projects, the concerning party may also inspect the financial worth. LLP annual filing provides the record of its financial worth and capacity to an interested person or party.

3.Maintain Active Status and avoid penalties

In case of consecutive default in annual filing, the LLP can be declared as defunct or receive default status. Also, the partners can be declared as defaulters and may also be disqualified from their further appointment in LLP or company. Hence, LLP needs to file the return to maintain active status. Regular filing also saves the LLP from heavy additional fee and penalties.

4.Easy conversion and closure

For conversion of the LLP into any other organization, annual filing is very essential. The regular compliance records ease the conversion task. The same applies in case of closure of LLP. Even if the LLP was non-operational, the Registrar may ask to fulfill annual compliance, with additional LLP filing fee, if applicable.

Frequently asked Questions

1.It is mandatory for an LLP to carry out annual compliance?

Yes, it is mandatory for an LLP to carry out their annual compliance.

2.Should an LLP carry out annual compliance even if no business was generated in a financial year?

Yes, even if no business or revenue was generated, an LLP still has to carry out the annual compliance.

3.What happens if you don’t carry out the annual compliance?

The Income Tax Department or ROC can take strict legal action against companies and their partners if the annual compliance.

4.Whether Annual Filing is necessary for the LLPs?

LLP Annual Filing is necessary for every LLP since its incorporation. From the closure of its first financial year, the LLP must file both the forms within the prescribed time limit.

The annual compliance is mandatory for every LLP, irrespective of the number of transactions, turnover, or commercial activity undertaken.

5.What is the penalty for non-filing/delayed filing of annual compliance forms for LLP?

In case of delay in filing, the LLP is charged with an additional Government fee of Rs 100 for each day of delay. Also, there is no ceiling limit to an additional fee. For continuous failure to annual LLP compliance, the RoC can remove the name of LLP from its register. Also apart from additional fees, the penalty may also be levied to LLP and its partners.

6.Whether the Audit of Financial Statements is required for LLP RoC filing?

The audited books of accounts are necessary for the LLP falling under any of the below-mentioned criteria:

1) If the turnover of the LLP exceeds ₹ 40 Lakh; or

2) Total contribution of Partners exceeds ₹ 25 Lakh.

If LLP does not fall under any of the above criteria, statements with the signature of partners are sufficient.

7.When does the first Financial Year of the LLP end?

Due dates of LLP compliance are based on the closure of each financial year. The Financial Year of every LLP must be closed on 31st March. However, the period of financial year depends on the month of its incorporation:

  1. a) LLPs registered between 1st April and 30th September: The LLP must close its financial year on 31st March of next calendar year. Suppose LLP is registered on 1st May 2018, the same should close its financial year on 31st March 2019.
  2. b) LLPs registered between 1st October and 31st March: The LLP has an option to choose the end of its financial year. For instance, if the LLP is registered on 30th October 2018 the same can close its financial year either on 31st March 2019 or 31st March 2020.