COMPLIANCE FOR LIMITED

Mandatory Compliance For Limited Liability Partnership

Every limited liability partnership shall file an annual return duly authenticated with the Registrar within sixty days of closure of its financial year in such form and manner and accompanied by such fee as may be prescribed. LLPs are separate legal entities therefore, the Designated Partners are responsible to maintain correct book of accounts and file annual return with the MCA each financial year. Every LLP has to close its books of accounts as on 31st March every year and prepare a Statement of Accounts (Profit and Loss Account and Balance Sheet) and has to file the same with Registrar of LLP.


Startup Setup experts have years of experience in mitigating legal, contract and regulatory risks services. Our professional team help yout to meet the compliance hassle-free. As per Companies Act, every business in India must meet the statutory compliance requirements. Failure in corporate compliance leads to penalties and bad reputation.

Highlights

Periodic compliance requirements

An LLP must maintain books of account, either on cash basis or accrual basis, in accordance with accounting principles, to show the LLP’s transactions and disclose financial position. Books of accounts must be kept in such manner that they enable the designated partners to show that any Statement of Accounts and Solvency complies with the LLP Act.

Annual compliance requirements

Annual compliance for LLP is much less compared that required for a company. An LLP is required to maintain certain books of accounts for each year of business. For the purpose of closing its books of accounts, it may opt for either the end of the financial year.


To maintain financial affairs and file accounts

To maintain proper books of accounts relating to its affairs for each year on cash or accrual basis and according to the double entry system of accounting and shall maintain the same at the registered office of the company.


Limited Liability

A LLP exists as a separate legal entity from your personal life. Both LLP and person, who own it, are separate entities and both functions separately. Liability for repayment of debts and lawsuits incurred by the LLP lies on it and not the owner.

Easy Transferable Ownership

It is easy to become a Partner with minimum number of documents or leave the LLP or otherwise it is easier to transfer the ownership in accordance with the terms of the LLP Agreement.

 

Body Corporate

Just like a Company, LLP is also body corporate, which means it has its own existence as compared to partnership. LLP and its Partners are distinct entity in the eyes of law. LLP will know by its own name and not the name of its partners.

FAQs

What is Annual Return?

Annual return is a mandatory filing to be made by all LLPs in India. The annual return must be filed in the prescribed format with the Ministry of Corporate Affairs. Filing of annual return with the MCA is different from the filing of annual return with the Income Tax department.

What is Statement of Accounts and Solvency?

Statement of Accounts and Solvency is a mandatory filing that is required for all LLPs in India. Statement of Accounts and Solvency contains a declaration on the state of solvency of the LLP by the designated partners and also information related to statement of assets and liabilities and statement of income and expenditure of the LLP.

What is the due date for filing LLP Annual Return?

Annual return of a LLP is due within 60 days of close of financial year. For LLPs financial year starts on April 1st and ends on March 31st, therefore the Annual return of a LLP is due on or before May 30th of each financial year.


I am a newly incorporated LLP, when is my annual return due?

If a LLP was incorporated on or after 1st October of a financial year, then the LLP can close its first financial year either on the coming or next 31st March. Therefore, if required, a newly incorporated LLP can file its first Annual return and Statement of Accounts and Solvency for 18 months.

Can the LLP be closed / wound up without filing Annual return?

The LLP cannot be closed/ wound up unless all pending annual filing is complete.

Is Annual Filing compulsory even though LLP has not done any business since incorporation?

Even though the LLP is not functional since incorporation, the LLP shall be required to file returns.

What is the penalty for non-filing LLP annual Return?

Late filing or non-filing of LLP Annual Return or Statement of Accounts and Solvency before the due date will attract a penalty on per day basis.

LLP Income Tax Return ?

An LLP has to close its financial year as on 31st March every year and has to file the returns with Income Tax Department. In case of LLP whose annual turnover is more than Rs.100 Lakhs, the accounts have to be audited as required under Income Tax Act as well.

In case the LLPs accounts that are subject to audit, either under Income tax Act or LLP Act, the last date for filing the Income Tax Return is 30th September every year.

What is a Limited Liability Partnership?

A LLP is a new form of legal business entity with limited liability. It is an alternative corporate business vehicle that gives the benefits of limited liability but allows its partners the flexibility of organizing their internal structure as a traditional partnership. The LLP is a separate legal entity and, while the LLP itself will be liable for the full extent of its assets, the liability of the partners will be limited.

What is minimum number of partners required in LLP?

At least two partners required to register a LLP

Can a minor be appointed as a Partner in a LLP?

The Designated Partners needs to be over 18 years of age and must be a natural person. Even foreign nationals can be appointed as a Partner with the approval for Foreign Contribution Promotional Board.

What is the time frame for registering my LLP?

We can register a LLP within 10 to 15 days of time. But the documents submitted should be as per our requirements and also within time. If there is any delay in submitting the docs the mentioned time frame may change.

Process Flow

Annual Filing Advice


Our Team can advise on the mandatory e filing applicabe to the LLP and time line for filing the same.





1 Day


Return Prepration


Our expert team will prepare documents for annual filing based on the events occured and financial statments.




1 Day


Validation of Information


Our team shall share documents prepared with the authorized person for validation of informaiton filed in e filing.





1 Day


E Filing Return


After approval of inforamtion by authorized person our team shall file e returns to minsitry of corporate affairs.




1 Day






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Corporate Compliance

Indian companies and LLP are require do comply with various statutory provisions by filling return with MCA. Our teams helps for timely filling of compliance. Timely filling of returns avoid late filling penalty.

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