In the case of a Limited Liability Partnership, one needs to file annual returns periodically to maintain compliance. Compliance Requirements for an LLP are low when compared to other Private Limited Companies. In Order to overcome high penalties, one needs to file the Returns carefully on or before the due dates. For your knowledge, we have mentioned the LLP Annual Filing Forms, Process Flow, Documents Required, Compliances Involved, Penalty for Non-Filing, etc.
- What is LLP Annual Return Filing?
- LLP Annual Filing Forms
- LLP Annual Filing Process Flow | How to File LLP Annual Returns?
- Documents required for LLP Annual Filing
- LLP Annual Filing Compliances
- LLP Annual Filing Compliances Calendar
- Penalty for Non-Filing
- FAQs on LLP Annual Returns Filing
What is LLP Annual Return Filing?
LLPs registered under the Ministry of Corporate Affairs need to file the Annual Returns and Statement of Accounts for the financial year. LLPs are separate legal entities and it is the responsibility of Designated Partners to maintain the account books. Of all of them Filing Form 8 and Form 11 are the main Compliances.
LLP Annual Filing Forms
There are two different forms through which you can file LLP. They are as follows
Form 11: It is a Statement of Annual Return and every LLP needs to file Annual Returns in Form to Registrar within 60 days from the closure of a financial year and the deadline is on or before 30th May every year.
Form 8: This is a Statement of Accounts and every LLP needs to prepare and close accounts before 31st March of each year. At least Two Designated Partners needs to file with the Registrar within 30 days of completion of 6 months of financial year i.e. by 30th October every year.
LLP Annual Filing Process Flow | How to File LLP Annual Returns?
Go through the simple process listed below and learn about the LLP Annual Filing Process Flow. They are along the lines
- The first and foremost step is to fill a Checklist.
- The next step is to submit the required documents and verify them.
- Fill the Forms 8 & 11 and update all the records.
- And then file your Income Tax Returns on or before the due dates.
- Once the IT Returns are filed you will receive an acknowledgment on the same.
Documents required for LLP Annual Filing
Below is the list of documents needed for LLP Annual Filing. They are as under
- Statement of Accounts
- Disclosure under MSME if any applicable.
LLP Annual Filing Compliances
- LLPs are needed to file Form 8 on or before 30th October each year. Form 8 includes details such as Statement of Accounts and Solvency and it needs to be filled by the LLP on a yearly basis.
- You need to fill the Form 11 on or before 30th May every year. It includes Designated Partners Details and notes if at all there are any changes in the management.
- All LLPs need to file Income Tax Returns every year irrespective of the transactions they do. IT Returns need to be filed if covered under audit on or before 30th September or else on or before 31st July.
- Accounting is needed so as to meet other compliances such as Annual filing, Statutory audit, and Income tax Return Filing.
- LLPs whose turnover exceeds more than 2 Crores need to get an Audit done as per the IT Act. For a business with INR 50 Lakh should get books of accounts tax audited as per the Income Tax Act under Section 44AB. Audit needs to completed and filed on or before 30th September.
- If AMT Provisions apply to LLP then it is mandatory that LLPs obtain Form 29C to certify both AMT and Adjustable Total Income is computed as per the provisions of the IT Act.
LLP Annual Filing Compliances Calendar
|Form Type||Described||Due Date||To be filled with|
|Form-8||Filing of Statement of Accounts||30th October||Registrar of Companies|
|Form-11||Filing of Annual Returns||30th May||Registrar of Companies|
|ITR -5||Income tax return||31st July||Income tax department|
|Audit||Tax Audit (only if applicable)||30th September||Income tax department|
Penalty for Non-Filing
If at all you do any delay in filing both Form 8 and Form 11 of LLP you need to pay penalty applicable as of today’s date. If you don’t do it within the stipulated time you need to pay a fine Rs.100 per day till you pay. You can’t close your LLP without filing Annual Accounts. In case of not filing the forms, it turns to unlimited statutory liability by the time you pay.
Provisions Act needs LLPs to file Documents such as Statement of Account and Solvency(SAS) and Annual Return(AR) within the time allocated in relevant provisions. If you don’t file within the stipulated time you are liable for paying a fine as punishment. To overcome high penalties it is advisable to pay on time.
FAQs on LLP Annual Returns Filing
1. Do LLP file tax returns?
Yes, LLPs do file tax returns on an annual basis.
2. What are the mandatory compliances of LLP?
There are mandatory compliances of LLP for a financial year and they are
- Form 8(Financial Statements of the Year)
- Form 11(Annual Return for LLP)
3. Is LLP required to maintain books of accounts?
Yes, LLPs should maintain proper books of accounts as they are required to be audited.