LLP Annual Return Filing
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1. All the required documents are collected from the client.
2. Required forms are filed on your behalf.
3. Thus all your required compliances are duly fulfilled.
Introduction
LLP or the Limited Partnership is a hybrid combination of a limited and partnership company.
Minimum two partners are required to incorporate an LLP there is no such upper limit.
Limited Liability Partnerships are required to file the annual returns within 60 days from the end of the close of the financial year and account statement and solvency within 30 days from the end of six months of the closure of the financial year.
The financial year for the LLPs starts from the 1st of April to the 31st of March. The annual return for the LLPs is due on May 30th while the statement of accounts and solvency is due on the 30th of October of each financial year.
Besides the MCA annual return filing, the limited liability partnerships must also mandatorily file the income tax return every year.
Documents Required
Features
01
Separate Legal Entity
LLP is a body corporate and separate legal entity from its partners having perpetual succession. It can own assets in its name, sue and be sued.
02
The main advantage of LLP is that no partner can be held liable for negligence or misconduct of other partners.
03
Limited Liability
Partner’s liability is limited to the extent of agreed contribution (capital) in the LLP Agreement except in case of fraud.
04
Perpetual Succession
Unlike a general partnership firm, a limited liability partnership can continue its existence even after the retirement, insanity, insolvency or even death of one or more partners.
05
Business for Profit Only
Limited Liability Partnerships cannot be formed for charitable or non-profit purposes. It is essential that the entity is formed to carry on a lawful business with a view to earning a profit.
06
Lower Compliance Requirement
An LLP involves lesser compliance as compared to a private/ public limited company. Unlike companies, compliances elated to board meetings, statutory meetings etc. do not apply to LLPs
Audit of accounts from professionals
LLP shall maintain proper books of accounts where audit shall also be required if the capital contribution exceeds Rs. 25 Lakhs or turnover exceeds Rs. 40 Lakhs
Documents Required
PAN Card
Description of proposed business activity
Passport size colour photo of all partners
Mobile No. and email id of designated partners
Copy of resolution (if a body corporate becomes partner of LLP)
Utility bill in name of the owner
NOC from the owner of the premises
Proof of registered office address (Rent deed/ lease deed)
Benefits
No late fees: LLP forms filed late attract an additional fee of ₹100 a day for each form, with no upper limit. Filing Form 11 by 30 May and Form 8 by 30 October avoids a cost that can quickly exceed the rest of the LLP’s compliance spend.
Good standing: an LLP that is up to date with its filings can add partners, change contribution, open bank accounts or close down without first clearing old defaults, and its designated partners avoid disqualification.
Applicable Rate
The income tax rate applicable for LLPs registered in India is 30% of the total income. Besides the income tax, a surcharge is levied on the income of the tax payable at the rate of 12% when the total income is exceeding Rs.1 crore
Health & Education Cess:
Health and Education cess of 4% is applicable on the amount of income tax and the applicable surcharge.
Minimum Alternate Tax (MAT) for LLP:
Similar to income tax applicable for a company, LLP is also subject to minimum alternate tax. A minimum alternate tax of 18.5% of adjusted total income is applicable for LLP. Hence, income tax payable by LLP cannot be less than 18.5 percent (increased by income tax surcharge, education cess, and secondary and higher education cess).
Accounts Maintenance
All the Limited Liability Partnership are required to maintain proper account banks on a cash basis or accrual basis. As Private Limited Companies are required to maintain books of accounts only on an accrual basis. The LLPs have the option of maintaining the books of accounts on a cash basis as well. The books of accounts must be maintained at the registered office of the LLP and must contain all the information like:
Sum of money received and expended
Assets and liabilities
Statement of Cost of Goods Sold
Inventories and finished goods statement.
Annual Filing for LLP
The LLPs are required to elect the partners for maintaining proper books of accounts and filing the annual return with the Ministry of Corporate Affairs annually.
Limited Liability Partnerships are required to file their Statement of Account & Solvency within a period of 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 financial year.
Annual Returns are to be filed in the prescribed Form-11. This form is considered as the summary of management affairs of LLP, like numbers of partners along with their names. Moreover, the form 11 has to be filed by 30th May every year.
Due Dates
An LLP's income tax return is due by 31st July, or by 31st October if a tax audit is required, subject to any extension notified by CBDT.
Even if the LLP has not done any business for the current financial year, the LLP is required to file a Nil Income Tax returns with the tax authorities.
LLP Form 8 is an annual filing is to be filed with ROC every year. Statement of account and solvency shall be filed with the registrar within 30 days from the end of 6 months of the financial year to which the statement relates. Form 8 is due by 30th October and Form 11 by 30th May every year.
This form includes a declaration on the solvency state of the LLP by the designated partners and also information related to the statement of assets and the liabilities and statement of income and the expenditure of the LLPs.
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Got a question?
We've got answers.
If I have incorporated my LLP close to year-end, do I still need to file the annual return?
If an LLP is incorporated after the 1st of October of the current year that is say 1 October 2020, then the LLP can file returns in the coming March that is 31 March 2021 or next March that is 31 March 2022 that is an LLP can file its first financial return for a period of 18 months.
What are the consequences of the non-filing of Form 11?
What are the consequences of the non-filing of Form 8?
Who needs to authorize Form 11?
Who needs to authorize Form 8?
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