A-818, Sun West Bank, Opp. City Gold Cinema, Ashram Road, Ahmedabad -380009
Get in Touch
Contact Info
-
-
info@taxcenterindia.com
-
+91-8153002300
+91-9662299517
Annual LLP Compliances
For a Limited Liability Partnership (LLP), the returns should be filed periodically for maintaining compliance and escape heavy penalty under the law for non-compliance. A Limited Liability Partnership has only few compliances to be followed every year which is amazingly low as compared to the compliance requirements placed on the private limited companies. However, the fines seem to be quite large. Whilst non-compliance might only charge a Private Limited company INR 1 lakh in terms of penalties, it might charge an LLP up to INR 5 lakh.
Limited Liability Partnerships (LLPs) Compliance Requirements
Limited Liability Partnerships (LLPs) are recognized as separate legal entities, and therefore, they are bound by specific compliance obligations. The responsibility for ensuring compliance rests with the Designated Partners of the LLP. The key compliance requirements for LLPs include the following:
Filing Annual Return
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.
Benefits Annual LLP Compliances
- Higher Credibility: Annual compliance enhances the organization's credibility, aiding in loan approvals and meeting various requirements.
- Record of Financial Worth: These filings create a financial track record for LLPs, attracting potential investors and partners.
- Stays Active and Penalty-Free: Consistent compliance keeps LLPs from being declared defunct, preventing penalties and additional fees.
- Conversion and Closure: Regular filings simplify the process of converting LLPs into other business structures and expedite partnership dissolution.
FAQs
LLP Annual Filings refer to the mandatory submissions and reports that Limited Liability Partnerships must file annually with regulatory authorities to maintain compliance.
These filings are crucial for upholding the legal status of an LLP, ensuring transparency, financial accountability, and credibility.
Non-compliance can result in penalties of up to INR 5 lakhs for LLPs, making it essential to meet annual filing obligations.
Key compliance requirements include maintaining proper books of accounts, filing annual returns (Form 11), filing statements of accounts (Form 8), and filing Income Tax Return (ITR - 5).
Form 11 should be filed within 60 days after the financial year-end, typically by May 30th each year.
Late filing of Form 11 can result in penalties of INR 100 per day of delay.
Form 8 should be filed within 30 days from the conclusion of six months after the financial year ends.
Form 8 can be digitally signed by two designated partners of the LLP and must be certified by a company secretary, chartered accountant, or cost accountant.
Late filing of Form 8 can result in penalties of INR 100 per day of delay
A tax audit is mandatory for LLPs with an annual turnover exceeding Rs. 40 lakhs or contributions surpassing Rs. 25 lakhs, subject to certain conditions.
The deadline for tax audit for applicable LLPs is September 30th, while the deadline for LLPs without tax audit is July 31st.
Yes, LLPs engaged in international transactions must file Form 3CEB, certified by a chartered accountant, by November 30th.
LLPs are required to file their income tax return using Form ITR-5.
The due date for ITR filing by LLPs is July 31st, or September 30th if tax audit is mandatory.
Benefits include higher credibility, a financial track record, penalty prevention, and simplified conversion or closure processes.
Timely filing helps LLPs maintain good standing, avoid penalties, and ensures the smooth operation of business activities.
