What is Annual Filing for LLP?
Limited liability partnerships (LLPs) has a smaller number of compliances to fulfill in contrast to private limited companies. LLPs need only file information related to the statement of accounts and annual returns on an annual basis but failure to do so can be very costly as penalties are very high in respect of LLP noncompliance. Penalties may go up to Rs. 5 lakhs in some cases.
Advantages of Annual Filing for LLP
Many businesses let their compliance requirements pile up, and compliances remains pending from their side to be fulfilled. Staying disciplined from the preliminary days will be immensely useful when the Annual Filing for LLP are looking for investment or a bank loan, as both would want to make sure that business is compliant with the Registrar of Companies' (ROC's) requirements.
- Consistent Updates
Having a company secretary on call throughout the year is essential in ensuring that your business is run in accordance with the laws in force and updated thoroughly.
- Time Frame
Once the necessary documents like annual accounts etc are received the filings are done within the time frame mentioned or provided by ROC.
Frequently Asked Questions
A Limited liability partnership or an LLP is a partnership with limited liability. Every LLP registered under the Ministry of Corporate Affairs (MCA) have to file the Annual Returns along with the Statement of Accounts every financial year.
There are three compliances which are considered mandatory for every LLP to comply with every financial year. They are Annual Returns, Financial Statements and Income Tax Return Filing of an LLP.
Yes, it is necessary for every LLP to mandatorily file Annual Returns and financial statements even if they are not doing any business to the Ministry. It is considered as a necessary requirement of law that even NIL returns should be filed.
For an LLP to get its accounts audited, it is necessary that the annual turnover should exceed Rs. 40 lakhs or the capital contribution should exceed Rs. 25 lakhs as stated under the Limited Liability Partnership Act.
Annual Return in Form 11 for an LLP can be filed to the Registrar within 60 days from the closure of financial year which means that Annual Returns have to be filed on or before 30th May every year.
The Annual Return of an LLP can be filed by any of its directors signed duly by both the directors and by the Manager or Company Secretary of the company. In case of no Manager/CS in a Company signature of both the directors are deemed compulsory.
In order to file an annual return Form 11 is required to be filed by every LLP with the Registrar within 60days from the end of the financial year.
Whenever there is a delay in filing for annual return by an LLP through From 8 and 11 then a penalty is applicable and it may sum to Rs. 100 per day.
In order to register a Limited Liability Partnership you need to be an Indian Citizen with a minimum of two directors and a minimum of two shareholders along with the minimum required capital of Rs. 1,00,000(US $2250 approx)which may increase up to any limits.
A minimum of 15 to 30 days are required for a Limited Liability Partnership to be registered.
The minimum requirement for a partner in an LLP is that he or she should be an Indian citizen and must be above 18 years of age.