LLP Annual Compliance

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For a Limited Liability Partnership (LLP), the returns shall be filed regularly for securing compliance and avoid the hefty penalties provided under the law for its non-compliances. An LLP has limited compliances to be ensured every year, which are immensely less as compared to the compliance obligations placed on the private limited companies. However, the fines and penalties are quite high. While non-compliance might only cost a private company rupees 1 lakh in terms of penalties and fines, it might cost an LLP up to 5 lakhs

An LLP is a separate legal entity; so, it is the responsibility of the designated partners to keep and maintain proper books of accounts and file an annual return with the Ministry of Corporate Affairs (MCA) annually. LLPs are not obliged to audit their accounts except where their annual turnover is more than forty lakh or if the contribution is more than twenty-five lakh. Therefore, an LLP is exempted from getting the books of accounts audited if the said conditions are fulfilled, making the process of the annual filings simpler.

LLPs in India are required to file an annual return within 60 days from the end of the financial year and statement of account & solvency within thirty days from the end of six months of the closure of the financial year. In addition to the annual return, LLPs are also required to file an income tax return every year mandatorily. K Alok & Associates provides complete LLP compliance services which include annual filing of LLP and complying with the filing of the income tax return.

 

Statements of Accounts and Solvency

All registered LLPs are obligated to have their books of accounts in place and fill in data for the profit made, and other financial data in regards to business, and submit it in Form 8 annually. Form 8 needs to be attested by the designated partners and should also be certified by a practising-chartered accountant or a practising company secretary or a practising cost accountant. Failure to file the statement of accounts & solvency report within the time limits prescribed tends to impose a fine of INR 100 per day.

 

Filing Annual Return

Annual Returns are required to be filed in the prescribed Form-11. This form aims to provide a summary of management affairs of an LLP, like numbers of partners along with their names. Form 11 is required to be filed by 30th of May every year. We can provide you expertise assistance in LLP annual return online filing in Delhi, India. Form 11 needs to be certified by a Company Secretary in whole-time practice if the total contribution of partners exceeds Rs. Fifty lakhs or turnover exceeds Rs. 5 crores,

 

Filing and Audit requirement under the Income Tax Act

As discussed earlier, LLPs whose turnover is more than forty lakh or whose contribution margin has exceeded twenty-five lakh have to get the books of account audited by a practising CA. The deadline to file the income tax return for an LLP which are liable to get his accounts audited is 30th of September of the relevant assessment year.

 

NEW WEB-BASED PROCESS OF FILING OF LLP ANNUAL FORMS ON THE MCA PORTAL

MCA has launched a V3 version for LLP Filings. Now, all LLP filings going forward will be web based. Due to the change of the MCA version from V2 Portal to V3 Portal, the LLP-11 and LLP-8 Forms shall be web-based. LLP-11 and LLP-8 are required to be filed according to section 35 of the LLP Act, 2008, read with rule 25 (1) of the LLP Rules, 2009.

It is not required first to download a blank LLP-11 and LLP-8 e-form from Portal. LLPs have to prepare the Form directly on the MCA website as a web-based form. The web form LLP Form No. 11 and Form No. 8 aims to simplify filing annual returns by LLP to the Registrar of Companies (ROC).

 

Check Point for LLP Annual Filing:

* Please ensure that the applicant of the webform is registered as a business user at the MCA Portal before filing the webform.

* Users have to keep in mind that filing of this Form will not be allowed in case there is any LLP Form No.4 (Notice of appointment, cessation, change in name/address/designation of Designated partner or partner and consent to become a partner/ designated Partner) pending of payment of fees or in under processing in respect of LLP.

 

About Web-based LLP-11:

Almost 80% of the information of the web-based LLP-11 Form shall be pre-filled by the system, like:
 * Name of Partners/Designated Partners.
 * Obligation of Capital Contribution of Partners as per LLP-3.
 * Directorship of Partners/DP’s, etc.

 

Information required to fill in LLP-11:

* Capital Contributed by Partners/DP’s for year ended on 31st March.
 * Address of Police Station.
 * Business Classification (Like Business, Service, etc).
 * Compounding or Penalties, if any, during the FY.
 * Whether Turnover exceeds five crores or not.

 

About Web-based LLP-8:

Same as Form LLP 11, almost 80% of the information of the web-based LLP-8 Form shall be pre-filled by the system. Only the financial part is to be filed manually.

 

Process of filing of Form

* Complete filling of Form
* Submit the filled Form
* SRN number will get generated and communicated via SMS and mail
* Document and SRN number will be available in tab, My Application.
* The Form get auto-downloaded as a PDF in the system. This pdf file can be downloaded under “Download the PDF” from My Application against SRN number, in case the download is not done.
* Open the PDF in adobe.
* Affix the DSC as per the standard process

 

Process of Submitting/Uploading the Forms after affixing the Form

After signing the documents, the user will be required to upload the pdf document (with affixed DSC) on the MCA Portal against the SRN
 
* Go to My Application
* Check for relevant SRN
* Scroll right
* Click on the “Upload PDF” Option
* The user will be administered to a page where one can upload the “DSC affixed PDF document.”

 

Significant benefits enjoyed by Limited Liability Partnership are:

  1. LLP is a separate legal entity from its partners.
  2. LLP can quickly Transfer its ownership
  3. It has assets and liabilities that are distinctive from that of its promoters.
  4. It can raise funds from Banks, Partners and NBFCs.

 

LLP Annual Filings at K Alok & Associates

The compliances as mentioned are mandatory to be followed irrespective of turnover or number of transactions. Limited Liability Partnership, which is growing in the business world, has to bear the burden of numerous compliances to avoid the liability resulting from fines and penalties. Since LLP has to comply with way fewer compliances than the company, it is always good to file all the returns and forms before the due date to avoid hefty penalties with timely annual LLP compliance filing
 
We, at K Alok & Associates, help our clients stay fully compliant with all the provisions of filing the LLP annual return Online, other mandatory filings and compliances with the help of our professionally managed and high-quality team of experts.

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Frequently Asked Questions

How much paid - up share capital is needed to start a company?

The requirement related to minimum paid-up capital requirement to start a company has been omitted. Hence, there is no requirement of minimum paid-up share capital to incorporate a company. One can start a company with any minimum amount.

To start a company, the minimum number of members required are as follows:

* Public Company- 7
* Private company-2
* One-person company-1

Every public company shall have at least 3 directors to meet the statutory requirements. Whereas in the case of a private company, only two directors are required, and an OPC requires only 1 director.

Step 1: Apply for the DSCs of all the directors
Step 2: Obtain DINs of all the directors (can also be obtained through SPICE form at the time of filing the SPICE e-form) 
Step 3: Reserve a name under the RUN or SPICE form
Step 4: Fill and submit all the forms linked to the SPICE+ form

yes, the MCA has introduced an e-Form SPICE+ to incorporate a company that also offers the services like- 

PAN registration

TAN Registration

GSTIN Registration

Allotment of DIN

Issue of EPFO, ESIC Registration

Issue of Shops and establishment registration number.

If a company wishes to apply for a name and complete the process of incorporation simultaneously, then only one name can be applied for. It can apply for two names if the forms are filed later and not at the time of applying for the name. 

yes, opening a bank account in India is mandatory as all the subscription money will be received in that account. Apart from this, the company has to file the declaration of subscription money received in Form INC 20-A (commencement of business) within 180 days of incorporation of the company. 

As per Rule 3 of Companies Rule, 2014, only a natural person who is an Indian and resident in India is eligible to incorporate the OPC. Hence, the question of body corporate or other organization form being the single-member doesn’t arise.

In India, common types of company structures available for registration include private limited company, public limited company, one-person company (OPC). The choice of structure depends on factors such as the nature of the business, ownership structure, capital requirements, and legal compliance considerations.

Yes, a foreign national or non-resident can become a director in an Indian company. However, there are certain requirements and compliances to be fulfilled, such as obtaining a Director Identification Number (DIN) and complying with foreign direct investment (FDI) regulations, if applicable.

Yes, a company can change its name after registration. The process involves complying with the legal requirements, obtaining approval from the shareholders and government authorities, updating the company’s records, and publishing necessary notifications as per the regulations.

Yes, a company can change its registered office address after registration. The process involves complying with the applicable legal requirements, notifying the Registrar of Companies (ROC), updating the company’s records, and publishing necessary notifications as per the regulations.

Once a company is registered, it is valid until it is either dissolved or struck off by the Registrar of Companies. Annual compliances and filings are required to maintain the active status of the company.

Post-registration compliances for a registered company include filing annual returns, maintaining statutory records, conducting board meetings and general meetings, appointing auditors, complying with tax laws, and fulfilling other legal and regulatory requirements.

There is no minimum capital requirement for most types of companies in India. However, the authorized capital and subscribed capital need to be mentioned in the incorporation documents.

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