ANNUAL RETURNS LLP
Limited Liability Partnership (LLP) Annual Filings are a mandatory process for all LLPs registered in India. The Annual Return must be filed within a period of 60 days from the end of financial year. As part of the annual return, Statement of Account & Solvency has to be filed within 30 days after 6 months of the close of financial year.
Therefore, LLP annual filing is due on May 30th and the Statement of Account & Solvency is due on October 30th of each financial year.
As legal entities, LLPs are required to maintain a proper book of accounts. It is the responsibility of the designated partners to ensure complete accounts and filing of the annual return with the MCA at the end of each financial year.
One of the advantages of LLP Annual Filing is that: no Audit of accounts is required unless the annual turnover exceeds Rs.40 lakhs or if the contribution exceeds Rs.25 lakhs. As a result, LLPs that do not fall in the above category do not need to get accounts audited, and hence making the entire process very simple and quick
OUR ANNUAL COMMPLIANCE PACKAGE
Proper account records must be maintained by all Limited Liability Partnerships based on revenue and accrued funds after incorporation. The Registered Office of the LLP will be responsible for maintaining the record of account for the LLP, which will comprise all the details of income and expenditure, liabilities and assets, inventories, statement of COGS and statement of end products. All LLPs are expected to have their financial statements prepared in not more than six months from filing for the RoC, at the end of a financial year.
We help by doing book-keeping for the year or by completing the books with reconciliations and finalisation so that the records are available to smoothly file both financial as well as tax records for the company.
KEY DOCUMENTS TO BE FILED WITH RoC
A LLP is required to file two forms with ROC:
LLP Form 11
The form 11 also regarded as the annual return of the LLP is required to be filed online to RoC. The due date is usually two months after the end of a financial year i.e. the due date for filing the Annual Return for LLP is May 30th of every financial year. Form 11 contains information on the total number of partners, the summary of the contributions of each partner, information about the corporate body of partners and a summary of the changes in partners.
LLP Form 8
Form 8 is also called as the Statement of Accounts & Solvency of an LLP, which must be filed in not more than 30 days from the close of six months of the end of a financial year. All Limited Liability partnerships in India must file the Statement of Accounts & Solvency. The Statement of Accounts and Solvency comprises of the statement on the state of solvency of the LLP by the appointed partners. It also contains information that relates to the LLP’s statement of assets and liabilities, as well as Statement of income and expenditure. The due date for filing the Form 8 is one month before the close of six months of the financial year with a predetermined amount. Two appointed partners must digitally sign this form as well as proper authentication from a chartered accountant.
Audit & Income Tax Returns for LLPs
Audit for LLPs It is compulsory for all Limited Liability Partnerships to audit their accounts through an accredited Chartered Accountant once the turnover in a year goes beyond Rs. 40 lakhs, or a contribution above Rs. 25 lakhs. A statement by partners of LLPs must be present in the account filed at the RoC to effect the recognition of Partners on their roles in agreeing to the requirements in relation to the preparation of the statement of accounts and financial statements to avail the exemption from an audit. Filing Income Tax Returns LLPs are required to use the Form ITR 5 to file an income tax return. It can be filed on the tax website with the digital signature of the appointed partner. In India, the income tax return must be filed on or before July 31st where a tax audit is not mandatory. For LLPs with a turnover that goes beyond RS 40 Lakh or a contribution above Rs 25 Lakhs, they are expected to ensure that their accounts are audited by a certified Chartered Accountant. LLPs are expected to submit their tax filing on or before September 30th in order to receive an audit.
ANNUAL FILING CHARGES
ROC Annual Filing Charges would be specific to every client and depend on the scope of the work that is to be executed. It could be be an end-to-end job that would start with book-keeping, followed by finalisation and compilation of the accounts. The next step would be getting the filing of Form 11 followed by Form8. Finally there would be the filing of income tax. Besides whereever applicable the accounts would have to be audited by an independent CA.
Since one or more of these steps could be done in-house by the client fees in the process of filing would vary.
PROCESS & OTHER DETAILS
HOW WE WORK WITH CLIENTS
- We collect the required financial information and documents for the previous financial year and prepare the Annual Return for your Company.
- We will prepare the Annual Return required format and work with your team to verify and validate the same.
- Once the return is validated by your team, the return and all the required documents will be submitted to MCA along with your DSC (Digital Signature Certificate)
SOME POINTS TO BE CONSIDERED
- LLP structure means limited liability of partners, perpetual succession meaning uninterrupted existence until it is legally dissolved and lowest number of compliances compared to other entities
- Tax Audit is not required for LLPs with capital less than Rs. 25 lac and turnover not exceeding Rs. 40 lac
- LLP Annual filing is mandatory and is to be made by all LLPs in India. The Annual return along with the required documents must be filed with the Ministry of Corporate Affairs.
- The Annual return of an LLP is due within 60 days of close of financial year. i.e May 30th of each financial year. The Statement of Accounts and Solvency needs to be filed within 30 days from the end of six months of the close of financial year i.e October 30th of each financial year
- LLP Annual Filing includes The Statement of Accounts and Solvency which is mandatory to be filed every year by all LLPs in India. This Statement contains the state of solvency of the LLP by the designated partners. It is also mandatory to include information about the assets and liabilities, income and expenditure of the LLP