[email protected] | +91-9869230463 / +91-9869255850

Annual Compliance of LLP

Overview

Limited Liability Partnership is a individual/seperate legal entity recorded under the Ministry of Corporate Affairs (MCAs) in India. For registration into an LLP, there should be at most limited two persons as partners where mandatorily one has to be an Indian citizen and a resident. The partners in an LLP should take responsibility for maintaining a proper book of accounts, filing an Income Tax Return, and submitting an annual return with the Ministry of Corporate Affairs (MCA) on every financial year.
To establish a Limited Liability Partnership (LLP), the returns should be filed periodically for maintaining compliance and escape substantial penalties under the law for non-compliance. A Limited Liability Partnership has only few compliance to be succeeded every year which is certainly lower as compared to the compliance needs to be placed on the private limited companies. However, the fines seem to be quite large. While non-compliance might only impose a Private Limited company INR 1 lakh in terms of penalties, it might impose an LLP up to INR 5 lakh.
Limited Liability Partnerships gets a separate legal institution; therefore, it is the duties of the elected partners for simultaneously maintain a proper book of accounts and filing an annual return in consonance with the Ministry of Corporate Affairs (MCA) yearly. Limited Liability Partnerships are not needed to audit their ‘books of account except’ where their yearly turnover is more than INR 40 lakhs or if the investment or contributions to the company is more than INR 25 lakh. Therefore, an LLP is not required to get their books of account audited if it fulfils the condition as mentioned above, making the process of annual filing simpler.
Limited Liability Partnerships are required to file their Statement of Account & Solvency within thirty (30) days from the end of six (6) months of the financial year and Annual Return within sixty (60) days from the end of the fiscal year. Dissimilar to Companies, Limited Liability Partnerships are mandatorily required to maintain the financial year, from April 1st to March 31st. Hence, the Statement of Account & Solvency is to be filed on or before October 30th of every fiscal year, and the annual return for LLPs is due on May 30th every year, even if the LLP has not completed any business in that specific financial year. Some of the annual filings are mandatory whether the LLP has begun any business or not.

Registration Procedure

Considerable Sanctioned due dates for LLP annual filing FY 2019-20
LLP Form 11 Due Date for Annual Return Filing 30/5/2020
The Due Date for IT Returns: 31.07.2020 / 30.09.2020
The last date for filing income tax returns for LLPs, which does not require Tax Audit July 31, 2020, and if Tax Audit is then needed due to date for IT Returns for LLP would be September 30, 2020.
LLP form 8 Due date- 30.10.2020
Late Fees for Form LLP 8 And LLP 11 Filing
If there is a noticeable delay in filing Form 8 and 11 of LLP, a penalty of Rs. 100 per day per form is payable from the due date of filing return till the actual date return is filed.