LLP Annual Filing

Overview

A limited liability Partnership enjoys a separate status. Thus, an organization needs to maintain its active status by regularly filing with the Ministry of Corporate Affairs (MCA). Annual compliance filing is mandatory for any LLP, whether having a business or not. Annual compliance for LLP requires filing two separate forms. one of which is for Annual Return, whereas another one is for Statement of Accounts and Solvency.

The forms are filed for reporting the activities and financial data for every financial year within the upcoming year. The failure to fulfill LLP Annual Compliance requirements levies an additional fee of ₹ 100 each day of a delay till the particular date of filing. Hence, apart from the mandate, the heavy penalty compels the Designated Partners to fulfill the requirements.

Due Date for LLP Annual Filing :

LLP Form 11 (Annual Return) by 30th May
LLP Form 8 (Statement of Account & Solvency) by 30th October

Our Process

Step 1

Complete simple checklist

Step 2

Submit Documents such as Financial Statements etc.

Step 3

Form LLP Form 11 & LLP Form 8 are prepared and filed

Step 4

You receive acknowledgement

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Benefits

Higher Credibility

Legal compliance is a primary requirement for any business. The status of LLP annual filing is displayed at the Master Data of the LLP on the MCA portal and the same can be accessed by any person. For loan approvals or any other similar requirements, compliance is a major criterion to measure the credibility of the organization.

Record of financial Worth

The forms filed by the LLP are accessible by companies. Hence, while entering into contracts or major projects, the concerning party can also inspect the financial worth. LLP annual filing provides the record of its financial worth and capacity to an interested person or party.

Easy conversion and closure

For conversion of the LLP into the other organization, annual filing is extremely essential. The regular compliance records ease the conversion task. an equivalent applies just in case of closure of LLP. even if the LLP was non-operational, the Registrar may ask to fulfill annual compliance, with an additional LLP filing fee, if applicable.

Maintain Active Status and avoid penalties

In case of consecutive default in the annual filing, the LLP is often declared as defunct or receive default status. Also, the partners are often declared as defaulters and should even be disqualified from their further appointment in LLP or company. Hence, LLP must file the return to take care of active status. The regular filing also saves the LLP from heavy additional fees and penalties.

Documents Required

PAN Card

Financial Statement of LLP duly signed by the Designated Partners

Certificate of Incorporation of LLP

DSC of all Designated Partners is required

The LLP Agreement along with any supplementary agreement, if any

Clear All Your Doubts !

Whether Annual Filing is necessary for the LLPs?

LLP Annual Filing is necessary for every LLP since its incorporation. From the closure of its first financial year, the LLP must file both the forms within the prescribed time limit.Annual compliance is mandatory for every LLP, regardless of the number of transactions, turnover, or commercial activity undertaken.

What is the penalty for non-filing/delayed filing of annual compliance forms for LLP?

In case of delay in filing, the LLP is charged with an additional Government fee of ₹ 100 for each day of delay. Also, there's no ceiling limit to an additional fee. For continuous failure to annual LLP compliance, the RoC can remove the name of LLP from its register. Also apart from additional fees, the penalty may also be levied to LLP and its partners.

Whether the Audit of financial statements is required for LLP RoC filing?

The audited books of accounts are necessary for the LLP falling under any of the below-mentioned criteria:
1) If the turnover of the LLP exceeds ₹ 40 Lakh; or
2) Total contribution of Partners exceeds ₹ 25 Lakh.

If LLP doesn't fall into any of the above criteria, statements with the signature of partners are sufficient.

When does the first financial year of the LLP end?

Due dates of LLP compliance are based on the closure of each financial year. the financial year of every LLP must be closed on 31st March. However, a period of financial year depends on the month of its incorporation:
a) LLPs registered between 1st April and 30th September: The LLP must close its financial year on 31st March of next calendar year. Suppose LLP is registered on 1st May 2018, the same should close its financial year on 31st March 2019.

b) LLPs registered between 1st October and 31st March: The LLP has an option to choose the end of its financial year. for instance, if the LLP is registered on 30th October 2018 the same can close its financial year either on 31st March 2019 or 31st March 2020.

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