Some points regarding LLP annual compliance
Hemlata Khandelwal / 2021-03-31 04:33:17

The blog covers mandatory compliances after the registration of LLP under the Registrar of Companies, Ministry of Corporate Affairs, including the tax audit provisions under the LLP Act, 2008 and Income Tax Act, 1961. Some key points are also given concerning LLP.
What is the definition of LLP?
That means a partnership formed and registered under the Limited Liability Partnership Act, 2008.
Define the Foreign Limited Liability Partnership (FLLP) u / s 2 (m) of the LPP Act 2008:
"Foreign Limited Liability Partnership" means a limited liability partnership outside India, which establishes a place of business within India, including or registered;
In general terms, LLP is a corporate entity and governed by the laws and regulations laid down by the Limited Liability Partnership Act, 2008 (LLP Act, 2008).
" More than two and 2 individuals affiliated to establish a legitimate business for profit can establish an LLP."
Regulatory Authority for LLP:
Registrar of Companies (ROC), and the official online portal “Ministry of Corporate Affairs (MCA)”.
Compulsory compliances about LLP:
LLPs (limited liability partnership) having company registration in India with the Ministry of Corporate Affairs (MCA) are required to file the following mandatory compliance requirements:
  1. Filing LLP Annual Compliance- LLP Form-11
  2. Account and Solvency Filing Statement - LLP Form-8 (Statement of accounts / financial statements)
  3. Income tax return filing
Overview of mandatory LLP complaints:
  1. LLP Annual Compliance Filing:
The LLP Annual compliances Form 11 is a summary of the LLP's partners and is indicative of management changes.
Each Registered L-L-P is required to file an annual return in Form 11 to the Registrar within approximately 60 days of the financial year i.e. on or before May 30 of each year.
  1. Filing of statement of account and solvency:
(Statement of Annual Accounts / Accounts / Financial Statements / P&L & Balance Sheet)
    1. LLP should maintain proper books of account. Accounts can be on a cash or contingency basis.
    2. A statement of solvency (accounts) is required to be prepared every year ending 31 March.
    3.  It should be filed by Form -8 of LLP with the Registrar of Companies on or before 30th October every year.
    4. It should be noted that LLP / FLPP whose annual turnover is more than Rs. 40 lakhs or contribution of the partner is More than Rupees 25 Lakhs are required by the auditor of LLP / FLLP to get their accounts audited compulsorily.
  1. Filing income tax returns:
Income tax return filing for income in ITR-5 is required for LLP. LLP must file income returns electronically under digital signature if it is required to audit its accounts under section 44 AAB.
Privileges for LLP as compared to a private limited company:
  1. Concession from the maintenance of minute book, statutory register, and flexible tax rates, etc.
  2. No, AGM is not required for LLP. The shareholders of the AGM company meet once a year. Since there is no concept of stake in LLP, AGM is not to be conducted.
  3. A board meeting is usually associated with a board meeting. The LLP does not include any directors, instead, the designated partners run the business and are responsible for compliance. Therefore, a meeting of the Board of Partners is suggested in the case of an LLP firm.
  4. There is no (fix number) limit in (LLP) to the maximum number of partners.

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