Annual Filing for LLP - An Overview

Is your business registered as a Limited Liability Partnership (LLP)? Facing challenges in meeting LLP annual compliance? Leave your concerns to professionals at Fastzeal, where we ensure seamless and timely annual filing for LLP.

An LLP is a separate legal entity registered under the Ministry of Corporate Affairs (MCA) in India. To remain compliant, LLPs must complete their annual filing, which includes submitting income tax returns and annual returns to the MCA. These filings are mandatory to maintain the LLP’s legal status and prevent penalties.

Every LLP requires at least two partners, one of whom must be an Indian resident. It is their responsibility to maintain accurate bookkeeping and adhere to compliance requirements, ensuring the LLP's credibility and smooth operations.

Are you concerned about the complexities of LLP return filing? Get in touch with the Fastzeal team for expert assistance in annual LLP compliance.

Advantages of Annual Filing for LLP

1.     Enhanced Credibility

            Annual return filing strengthens an LLP's credibility, enhancing its reputation in the market. This can lead to easier loan approvals and better relationships with stakeholders.

2.     Financial Record Maintenance

           Timely compliance establishes a reliable financial record, making the LLP more attractive to investors and business partners.

3.     Active Status and Avoiding Penalties

           Regular annual filing ensures that the LLP remains active and is not declared defunct, helping it stay penalty-free and avoid additional fees.

4.     Simplified Business Conversion and Closure

            Maintaining compliance with annual filing requirements makes it easier for LLPs to convert to other business structures or wind up operations efficiently.

5.     Legal Protection

Ensuring compliance protects LLP partners from liabilities and potential disputes, ensuring smooth business operations.

Eligibility Criteria for Annual Compliance of LLP

1.       Maintenance of proper books of accounts

2.       Filing of Annual Return (Form 11)

3.       Filing of Statement of Accounts (Form 8)

4.       Filing of Income Tax Return (ITR-5)

5.       Filing of Tax Audit Report (if applicable)

6.       LLP must have a valid LLP Identification Number (LLPIN)

7.       Digital Signature Certificate (DSC) of a designated partner

8.       Clean legal history with no pending bankruptcy cases

Documents Required for Annual Return Filing for LLP

• 1.       Bank statements for all LLP accounts (April 1 to March 31 of the financial year)

  2.       Credit card statements (if partners incur expenses on behalf of LLP)

  3.       Invoices for purchases and sales

  4.       Invoices for business expenses

  5.       Copies of GST, VAT, or other tax returns (if applicable)

  6.       Copies of TDS challans (if applicable)

Process of Annual Filing for LLP

Step 1: Preparation of Financial Statements

Gather and compile financial statements for the financial year, including the balance sheet and profit & loss statement.

Step 2: Filing of Form 8

Form 8 must be submitted within 30 days from the end of six months after the financial year, typically by October 30th. This form includes financial details and the LLP’s solvency status.

Step 3: Filing of Form 11

Form 11 must be filed within 60 days from the end of the financial year, usually by May 30th. It provides information about the LLP, including partner details and contributions.

Step 4: Maintaining Digital Signature Certificate (DSC)

Designated partners must hold a valid DSC to sign and submit the required forms electronically.

Step 5: Payment of Fees

Necessary payments must be made along with the forms to complete the annual filing process.

Step 6: Submission to MCA

All required forms must be submitted through the MCA portal within the due date to avoid penalties.

Key Features of Annual LLP Compliance

1.       Avoidance of Penalties: Non-compliance can result in fines ranging from INR 25,000 to INR 5,00,000.

2.       Mandatory Filings: LLPs must file annual returns even if no business activity has taken place.

3.       Simplified Compliance: Audit exemption applies if turnover is below INR 40 lakh or partner contributions are under INR 25 lakh.

4.       Regulatory Alignment: Ensures transparency and accountability to stakeholders.

5.       Legal Standing: Protects LLP from penalties, loss of credibility, and legal complications.

Types of Annual Filings for LLP

1. Annual Return (Form 11)

1.       Must be filed within 60 days of the end of the financial year (by May 30th).

2.       Contains a summary of LLP management affairs.

3.       Non-compliance leads to a daily penalty of INR 100.

2. Statement of Accounts & Solvency (Form 8)

1.       Filed within 30 days from the end of six months after the financial year (by October 30th).

2.       Must be signed by designated partners and certified by a professional (CA/CS/CMA).

3. Income Tax Return (ITR-5)

1.       Filing deadline: July 31st (if audit not required) or September 30th (if audit required).

2.       LLPs exceeding INR 40 lakh turnover or INR 25 lakh contribution must get audited.

4. KYC Compliance

1.       Partners must file KYC before September 30th each year.

LLP Annual Compliance Filing Calendar

Why Choose Fastzeal for LLP Annual Filing?

1.       Expert Consultation

Over 10 years of experience in hassle-free LLP compliance and filing.

2.       Time Efficiency

Ensures a smooth and timely annual filing process.

3.       Minimal Paperwork

Supports preparation and submission of error-free documentation.

4.       High Compliance Success Rate

97% compliance success rate in ensuring LLPs meet statutory obligations.

5.       Tailored Solutions

Expertise in industry-specific compliance needs.

6.       24/7 Support