llp compliance
- LLP must file Annual Returns or Form-11 with the Company Registrar (RoC). The LLP will submit this annually in Form-8. ... Note that an LLP is required to file Form-8 and Form-11 even when there was no business in the LLP.
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- What's LLP?
- Limited Liability Partnership ( LLP) is a distinct legal organization licensed under MCAs in India. To register in an LLP, there should be at least two partners where one must be an Indian citizen and resident. The LLP partners should be responsible for maintaining a proper account book, filing an Income Tax Return, and filing an annual return on each financial year with the Ministry of Corporate Affairs (MCA).
- Limited Partnership Advantages:
- In an LLP, one partner is not liable for misconduct or negligence of another partner.
- LLP partners are entitled to manage the business directly.
- An LLP provides limited ownership protection.
- If the number of partners decreases below 2, the single partner will always choose a new partner to fill the role.
- Post integration, LLP may have infinite partners.
- If there's only one partner in an LLP, it's time to find a new one without dissolving the LLP.
- A separate legal entity.
- LLPs have assets and liabilities separate from promoters.
- An LLP may raise money from partners, banks, and NBFCs.
- All LLPs registered with the Ministry of Corporate Affairs (MCA) in India need accounts and annual returns for each financial year. If the LLP has done business or earned a profit, an LLP will file a refund. Three compulsory compliance when you own an LLP.
- Annual return filing
- Account records
- Receiving tax returns
- REGISTER The LLP
- Annual re-filing:
- In LLP, each financial year, a person should file two types of MCA annual returns. Both forms are Form 8 and Form 11.
- Form 8-Form 8
- Form 8 is Account and Solvency Statement. You should file Form 8 along with the fee within 30 days of the financial year's six-month end. LLPs' year-end is March 31 per year. Two spouses will sign the document digitally. Furthermore, a chartered accountant, auditor or business accountant may approve it. Form 8 consists of the LLP 's statement of assets and liabilities, and the LLP 's statement of income and expenditure.
- Type 8 has two forms. They 're:
- Section A — Solvency Comment
- Section B – Financial declaration, revenue tax & spending
- You'll have to pay Rs.100 / day penalty if you haven't submitted this application.
- Form 11-Form 11
- Form 11 is an annual return. The form will include all partner information, their commitments to the business, etc. File Form 8 along with the fee within 60 days of the financial year. LLPs' year-end is March 31 per year. Thus, every year, LLPs must file the LLP Form 11 on or before 30 May.
- Remember to pay the penalty if you don't file LLP Annual Return on or before the due date.
- Income-tax filing:
- You must file the income tax for your LLP whose turnover is more than Rs.40 lakhs or whose capital is more than Rs.25 Lakhs must be audited by a Chartered Accountant. The deadline to submit a tax return for an LLP to check and evaluate the accounts is 30 September. For LLPs that do not expect a tax audit deadline, the due date for filing the tax is July 31.
- Limited Liability Partnerships (LLPs) required to file Form 3CEB (LLPs that have entered into international transactions) may file their tax by 30 November. LLPs will submit their tax return in Form ITR 5. The form must be sent electronically through the income tax platform, using the digital signature of the chosen partner. LLP tax payment can be made physically via selected banks or e-payment.
- Account books:
- All LLPs must establish correct cash or accrual account books. Before 31 March each year, the report must be properly submitted as necessary. Where required, account books must be displayed in the registered office. For LLPs with a turnover of more than Rs.40 lakhs or over Rs.25 lakhs debt, a Chartered Accountant will audit the accounts.
- Any LLPs that do not obey the Act can be punished with a minimum Rs.25,000 fine and up to Rs.5,00,000. In addition, a penalty of Rs.10,000 and Rs.1 Lakh for non-acquiescence could be punished.