LLPs incorporation & Annual Compliances

LLPs incorporation & Annual event-based compliances

• It is a tactful process and it includes a step by step process. LLP is an emerging small business entity practiced in India under a certain act known as the Limited Liability Partnership Act, 2008.
• The relaxation of the FDI rules which concerns Limited Liability Partnership has drastically increased the interest amongst certain NRIs and Foreign Nationals.

What are the Limited Liability Partnership Annual Compliances? 

• Each Limited Liability Partnership registered pursuant to the requirements of the Limited Liability Partnership Act, 2008 is required to send the following forms to the Income Tax Portal/MCA Portal:

Yearly Limited Liability Partnership return – Form 11

• With reference to Section 35(1) of the Limited Liability Partnership Act, 2008, all Limited Liability Partnership is expected to file Form 11 with the Registrar of Companies within 60 days of the end of the financial year, i.e. by 30 May 2019.
• No & information of the partners and the assigned partners must be entered.
• Attachments: descriptions of the Companies/ Limited Liability Partnership’s where the Appointed Partner is the Partner/Director.
• To be DSC signed by the Appointed Partner and approved by a licensed practitioner.
• Penalties of Rs. 100/-per day for non-filing. There are also other penal regulations.

Yearly filling required for Account Statement and Solvency – Form 8

1. With reference to Section 34(2) of the Limited Liability Partnership Act, 2008, each LLP shall file Form 8 of the Account & Solvency Statement within 30 days from the end of the six months following the end of the FY and the same shall be filed by due date

• • There is no specified format for preparing the financial returns of the Limited Liability Partnership and, therefore, the accounts are drawn up in the format given in Form 8.
  • Attachments: Report under the MSME Creation Act 2006, Audited Financial Statements (if applicable), and Declaration of Contingent Liability, where applicable
  • Form must be DSC signed by both the Appointed Partners, the Auditor (if any), and the practicing practitioner.
  • The penalty of Rs. 100/-per day for non-filing. There are also other penal provisions.

Read Also :  Everything that you need to know about LLP

Notes: Penalty for non-compliance:

• LLP and it’s every partner shall be punishable with a fine of Rs 10000 & maybe extended to Rs 5,00,000.
• In the absence of a Limited Liability Partnership Agreement, Schedule I to the Limited Liability Partnership Act, 2008 is applicable.
• Every Limited Liability Partnership should mandatorily file E-Form no.3 and E-Form no.4 within 30 days of incorporation failing of which Rs.100/- per day will be charged as additional fees on each Form.

Read Also : Conversion of LLP into Company Limited by Shares

LLP Filling Due Date :

• New LLP filing fees from 1.4.2022
• LLP additional fees filling fee for small LLP with effect from 1 April 2022
• PAN/TAN integration with LLP incorporation form FiLLip : CBDT