Limited Liability Partnership Compliances & Filing
Running any business is hard. It requires money, time, and determination. Besides this, there is a lot of paperwork including registration, GST filings, and others that are cumbersome. However, our team of experts at TAXAJ will help you with all legal requirements, such as filing all the mandatory forms, suggesting the right lawyer for you (if you need one), or verifying your documents. TAXAJ helps you to avoid penalties for not filing the required forms on time. Let’s see about LLP compliance for India.
A end to end hand holding for your annual requirements is what we have in this plan. TAXAJ will assist you in matters like drafting, appointing, filling and much more.
It Usually takes 5 to 7 working days.
- Accounts Preparation & Advisory
- Managing Direct & Indirect Taxation
- Secretarial services of preparing board resolution, post AGM
- Yearly filing of Annual Forms with ROC & ITD
- Assistance in appointment of Auditor, if required
- Companies want to comply to the Annual Compliance as mandated my ROC/MCA
- Purchase the plan
- Share the documents/details as requested by us.
- We shall prepare the documents as required & get signed by you.
- Prepare the form as applicable & file it.
- Bank Statement of the Company along with mentioning nature & party to whom paid or received (If not already audited & needs to be audited by us)
- Shareholders & Shareholding Details of the company. (Including any transfer of shares, if any)
- Bank Account Number & IFSC of All Active Bank Accounts.
- Resignation Letter from Previous Auditor & Challan of Form ADT-3, if any
- DSC Tokens of the Directors.
- Email & Contact Number of the Company
- Copy of MoA, AoA, COI
- Copy of board resolution
- List of shareholders with holdings
- Details of board composition
- Last year's tax return
- Particulars of penalties or compounding offences (if applicable)
LLP Compliances Sorted in this Video!
What are compliances to be done by a LLP in India ?
What are compliances to be done by a LLP in India ?
| KYC of Directors – Form DIR – 3 KYC and Web KYC of all Partners||All the Partners of the LLP must be filed for the DIN eKYC or DIR-3 eKYC. In DIR-3 eKYC, the Partners must provide a unique personal mobile number and a personal email address. There's a penalty of Rs. 5000 in case of failure to file DIN eKYC.||30th September||File Now|
| Delay in Payment to MSME Vendor: Form MSME – 1||Company has to file this return half yearly in respect of pending payments to MSME vendors as at end of half year. All outstanding dues of more than 45 days payable to Micro or Small Enterprises suppliers.|| Half yearly Return April to Sep – 30th October; October to March – 30th April|
|Income Tax Return||Income tax returns need to be filed on or before 30th September 2021 for the Financial year 2020-21.||31st October||File Now|
|MCA Form LLP 11||The registered llp must file MCA Form Form 11 on or before 31st May. Failure to file Form 11 will attract a penalty of Rs. 100 per day of default or delay.||31st May or within 60 days from the end of the relevant Financial Year.||File Now|
|MCA Form LLP 8||The registered llp must file MCA Form Form 8 on or before 30th Oct. Failure to file Form 8 will attract a penalty of Rs. 100 per day of default or delay.||30th October||File Now|
Advantages of a LLP
- In an LLP, one partner is not answerable or liable for another partner’s misconduct or negligence
- The partners have the right to manage the business directly
- An LLP provides limited liability protection for the owners
- If the number of partners reduces less than 2, the sole partner can still find a new partner to fill the position
- Post incorporation, an LLP can have limitless partners
- If there is only one partner in an LLP, there is time to find a new one, without dissolution of the LLP
- It is a separate legal entity
- LLPs have assets and liabilities that are separate from that of the promoters
- An LLP can raise funds from partners, banks, and NBFCs.
All LLPs with the MCA and need a statement of accounts and annual returns for every financial year. Whether or not the LLP has done business or achieved profit filing a return is still mandatory. There are three compulsory compliances when you own an LLP.
- Filing of annual returns
- Books of accounts
- Filing of income tax returns
In an LLP, a person should file two types of MCA annual returns every financial year. The two forms are Form 8 and Form 11.
The Structure & Key Features of a LLP
The structure and key features of an LLP are-
- The structure of an LLP is a separate legal entity and enjoys perpetual succession.
- Limited Liability Partnership Act, 2008 governs the LLP.
- To form an LLP minimum of 2 partners are required.
- Ministry of Corporate Affairs administers the working of LLP.
- After LLP incorporation, it can deal with any trade or business.
- The partners of an LLP are treated as an agent but are not liable for any liability caused by a partner.
- The liability of the partners is limited to his stake in the capital except in the case of fraud and negligence.
- The assets and liability of an LLP are separate from their partners.
- LLP Agreement determines the rights and duties of the partners in an LLP. It is required to file an LLP Agreement to the ROC.
LLP Compliance Checklist
Various LLP compliances are required to be fulfilled by an LLP-
- Disclosure in the account about the contribution made by each partner-As per Section 32 of the LLP Act read with sub-rule (1) of Rule 23; every LLP shall disclose in their account the contribution of each of the partner along with the nature of the contribution.
- Books of Account to be preserved for a specified period-The Books of Account of an LLP are required to be preserved for a period of 8 years from the date on which the BOA is made.
The Books of Account shall be maintained by an LLP which relates to its affairs for each year of its existence. It can be on a cash basis or an accrual basis. The books of account shall be kept at its registered office.
- Filing of Annual Return -As per Section 35 of the Act, every LLP is required to file an Annual Return (FORM-11) with the registrar of the LLP within 60 days from the closure of the financial year.
- Filing statement of Account and Solvency-Every LLP shall file Form 8 consist of the statement of Account and Solvency. Along with the fee, within 30 days from the end of 6 months of the financial year.
The form must be certified by a chartered accountant, auditor or the accountant of the company and 2 designated partners must sign the form digitally.
Other Events Based Compliance for a One Person Company
- Appointment or Resignation of a Partner;
- Change in the statutory auditors;
- Increase of Capital Contribution;
- Change of Name of LLP;
- Change in Registered Office Address
- Registration/Modification of Charge
- Appointment of Auditor
- Statutory Audit of Accounts
- ITR and Audit requirement