Running any business, for instance, LLP, OPC, Private Limited, is not so easy. Investment of money, time and determination are highly required. There are formalities, registration efforts, Annual filings, GST filings and lots more which can make your head spin. Post incorporation requirements are obligations which LLP are supposed to fulfill subsequent to incorporation. These include filing of annual returns, Financial Statement, change of Partners/ Designated Partners, alteration in Contribution, and change of registered office.
All LLPs shall be under obligation to maintain annual accounts reflecting true and fair view of its state of affairs. Even if LLP does not do any business, it has to comply with statutory requirement such as Annual Return, Balance Sheet, Profit and loss Account, Income tax return every year. The statutory fees will depend upon the capital contribution of LLP.
1. Financial Year of LLP:
Every Company has to maintain uniform Financial ending on 31st March of the year. However, in case of LLP is incorporated after the 30th day of September of a year, the financial year may end on 31st March of the year next following that year.
2. Annual e-Forms to be filed by LLP
| S. No. | Agenda | Particulars | e-forms | Due Date Form Filling |
|---|---|---|---|---|
| 1 | Statement of Account & Solvency | A “Statement of Accounts and Solvency” in prescribed form shall be filed by every LLP with the Registrar every year | LLP-8 | 30th October |
| 2 | Annual Return | Every LLP would be required to file annual return in Form 11 with ROC within 60 days of closer of financial year. | LLP-11 | 30th May |
3. More about Form- 8 and Form 11:
What is Form – 8?
It is declaration given by all the designated partners of LLP that whether they are able to pay its debts in full as they become due in the normal course of business or not.
For the purposes of sub-section (3) of section 34, every limited liability partnership shall file Form 8 with the Registrar, within a period of thirty days from the end of six months of the financial year to which the Statement of Account and Solvency relates.
Content of Form 8
Part A- Statement of Solvency
Part- B- Statement of Account, Statement of Income & Expenditure
Two designated partners must sign the form digitally and again it has to be certified by Designated partner/ Authorized Representative/ Auditor. Further, it must be certified by a Company Secretary (in whole-time practice)/ Chartered Accountant (in whole-time practice)/ Cost Accountant (in whole-time practice).
Due Date of Filling of Form 8LLP is 30th October for each year.
What is Form – 11?
Form- LLP-11 is Annual Return containing number of partners, total contribution received by all partners, details of partners, detail of body corporate as partner, summary of partners.
Every LLP would be required to file annual return in Form 11 with ROC within 60 days of closer of financial year.
Due Date of Filling of Form 11LLP 30th May for each year.
Remember that you will have to pay the penalty of Rs. 100 per day if you don’t file Form 8LLP and 11LLP on or before the due date.
NOTE:
Any LLP which fails to file Form- 11LLP and Form 8 LLP within prescribe time, shall be liable to be punishable with fine which shall not be less then Rs. 25,000/- but which may be extend to Rs. 500,000/- and every designated partner of such LLP shall liable to be punishable with fine which shall not be less then Rs. 10,000/- but which may be extend to Rs. 100,000/-.
It has been provided that in case LLPs file relevant documents after their due dates with additional fees upto 300 days, no action for prosecution will be taken against them. In case there is delay of 300 days or more, the LLPs will be required to pay normal filing fees, additional fee and shall also be liable to be prosecuted or go for Condonation u/s 460 of Companies Act, 2013.
The Act also contains provisions for compounding of offences which are punishable with fine only.
The Act also contains provisions of Condonation u/s 460 of Companies Act, 2013.
REGULAR OTHER REQUIREMENTS:
4. Requirement of Audit of Account of LLP
Under LLP Act- 2008 (Rule 24) of LLP Rules – 2009, All LLPs must maintain proper books of account on a cash basis or accrual basis. Each year, before 31st March, the report has to be adequately submitted when required. The accounts books have to be presented in the registered office when needed. In case of LLPs with a turnover of more than Rs. 40 lakhs or capital contribution of over Rs. 25 lakhs, the accounts must be audited by a Chartered Accountant.
The LLP is not required to audit its accounts if its Turnover doesn’t exceed Rs. 40 lakhs and Capital contribution doesn’t exceed Rs. 25 lakhs. In case, where the partners of such LLP do not decide for audit of the accounts of the LLP, such LLP shall include in the Statement of Account and Solvency a statement by the partners to the effect that the partners acknowledge their responsibilities for complying with the requirements of the Act and the Rules with respect to preparation of books of account and a certificate in the form specified in Form 8.
Quick Bites:
a) Is audit mandatory for LLP?
Audit of LLP is not mandatory. However, audit of LLP is mandatory if fulfill any of following conditions:
Its turnover exceeds Rs. 40 Lacs; or
Its contribution exceeds Rs. 25 Lacs.
5. Income Tax Return
Every LLP have to file the Income Tax return with the Income Tax Authorities. Filing of returns is mandatory whether the LLP has started any business or not. Date of Filling of Tax Audit is as given below:
The deadline to file the tax return for an LLP which is required to get his books verified & audited is 30th September of the Assessment Year.
For LLPs where tax audit is not expected deadline, the due date for filing the tax is 31st July of the Assessment Year.
6. Applicability Of Tax Audit On LLP:
As per Section 44AB of Income Tax Act -1961
7. Meaning of Profession:
As per Section 44AA and rule 6F following include in Profession:
- Legal
- Accountant
- Company Secretary
- Architectural
- Medical
- Interior decoration
- Authorized representative
- Engineering
- Technical consultancy
- Film artist
- Any other profession as notified by the Board
MEANING OF AUTHORIZED REPRESENTATIVE:
A person who represents any other person, on payment of any fee or remuneration, before any Tribunal or authority constituted or appointed by or under any law for the time being in force, but does not include an employee of the person so represented or a person carrying on legal profession or a person carrying on the profession of Accountancy.
8. RETURNS AND RECORD REQUIRED BY LLP:
| S. No. | Agenda | Particulars | E-forms |
|---|---|---|---|
| 1. | Books of Account | LLP should maintain proper Books of Account. | N.A. |
| 2. | Minutes Book | Minute’s book should be maintained to record minutes of meeting of partners and managing/ executive Committee of partners. | N.A. |
| 3. | LLP Agreement and changes, if any, made therein | LLP Agreement is required to be file within 30 days of incorporation and changes, if any, made therein. | Form-3 |
| 4. | Change in Partner | Any change in partner and designated partner (admission, resignation, cessation, death, expulsion) should be filed electronically within 30 days of change. | Form- 4 |
| 5. | Change in Name | Any change in Name of LLP should be filed electronically within 30 days of change. | Form-5 |
| 6. | Statement of Account & Solvency | A “Statement of Accounts and Solvency” in prescribed form shall be filed by every LLP with the ROC every year within 30 days from the end of 6 months of the financial year. | Form-8 |
| 7. | Annual Return of Limited Liability Partnership (LLP) | Every LLP would be required to file annual return with ROC within 60 days of closer of financial year. | Form-11 |
| 8. | Change in Registered Office | Any change in place of registered office of LLP should be filed electronically within 30 days of change. | Form- 15 |
| 9. | Penalty | Heavy penalty of Rs. 100/- per day late filling | N.A. |