Annual Compliance and Event Based Compliance of LLP By CS Aman Kumar


SATISH KUMAR & ASSOCIATES
Company Secretaries
Ranchi | Patna | Kolkata                                                                                  
 
ANNUAL COMPLIANCES OF LLP

All LLP need to file Annual Returns and Statements of Accounts for every Financial Year. It is mandatorily for an LLP to file a return irrespective of whether it has done any business or not.

There are 3 mandatory compliance requirements to be followed by LLPs:


 
1. Annual Return

  • Annual Returns are filed in Form-11.

  • This is a summary of the management affairs of the LLP, such as numbers of partners and their names.

  • Form -11 needs to be file3d within 60 days of the closure of the Financial Year. Hence this Annual Return should be filed on or before 30th May every year by the LLP.
  • In case the Annual Turnover of the LLP crosses Rs. 5 Crores or the Capital Contribution from Partners exceed more than Rs- 50 Lakhs the Annual Return should be accompanied by a certificate from  Practising Company Secretary.
 
2. Filing of Statement of the Accounts & Financial Statements

  • All LLPs are required to maintain their Books of Accounts in Double Entry System.
  • They also need to prepare a Statement of Solvency (Accounts) every year ending on 31st For this Purpose, Form 8 should be filed with Registrar of Companies on or before 30th October every year.
  • LLPs whose turnover exceeds Rs- 40 lakh or whose contribution exceeds Rs- 25 lakh are required to get their accounts audited by a qualified Chartered Accountant mandatorily.

FINANCIAL YEAR UNDER LLP ACT

Financial Year of an LLP, means the period from 1st April of a year to the 31st March of the following year. However, in case of LLP incorporated after 30th September, the financial year of an LLP may end on 31st March of the year next following that year.

Penalty- The penalty for non-filing of these forms with the ROC is Rs 100 Per day per form.
 
3. Filing of Income Tax Returns
 
Every LLP is required to close its financial year on 31st March every year as per the Income Tax Act and is also required to file their returns with the Income Tax Department. The LLP whose annual turnover exceeds Rs. 40 lakhs or capital contribution exceeds Rs. 25 Lakhs are required to get their accounts audited under the provisions of the Income Tax Act.

Maintenance of book of accounts is mandatory for LLP, irrespective of annual turnover. However, it is mandatory for LLP to file a return of income electronically under digital signature, if its accounts are required to be audited under section 44AB of the Income Tax Act. Due dates for an LLP to file their Income Tax Returns are as follows:
 

Particulars

Due Dates

LLP who is required to get its accounts audited under the Income-tax Act or under any other law

September 30 of the assessment year

LLP who is required to furnish a report in Form No. 3CEB under Section 92E of Income Tax Act

November 30 of the assessment year

In any other case

July 31 of the assessment year

 
EVENT BASED COMPLIANCES FOR LLP
 

SECTION

NATURE OF EVENTS

COMPLIANCE REQUIREMENT

PENALTY FOR NON COMPLIANCE

7(3)&(4)

Consent &Particulars of Partner/Designated Partner

Filing of consent of Partner/ Designated Partner to act as such with the Registrar of Companies in E Form- 4 within 30 days of the appointment as the designated partner

The LLP and all its partner shall be punishable with fine which shall not be less than Rs. 10,000 & may extend to Rs. 5,00,000

9

Vacancy of Designated Partner

Filing of the vacancy in Designated Partner within 30 days of vacancy and intimation of same to Registrar in E Form- 4 and in case if no designated partner being appointed or if any time there is only one designated partner, then each partner shall be deemed to be the designated partner

The LLP and all its partner shall be punishable with fine which shall not be less than Rs. 10,000 & may extend to Rs. 5,00,000

13(3)

Change of Registered Office

File the notice of any change in the registered office with the Registrar of Companies in E Form - 15 within 30 days of shifting and any such change shall take effect only upon such filing.

The LLP and all its partner shall be punishable with fine which shall not be less than Rs. 2000 & may extend to Rs. 25000

19

Change of Name

LLP may change its name registered with the Registrar by filing with the Registrar notice of such change in E Form- 5 within 30days of such change.

A person guilty of offence shall be punishable with fine which may extend to Rs 5,00,000 but which shall not be less than Rs 50000 and with a further fine which may extend to Rs 50 for every day after the first day after which the default continues

23

LLP Agreement & Changes therein

LLP Agreement and any changes made therein shall be filed with the Registrar in E Form-3 within 30days of incorporation of LLP or such alteration of LLP agreement

The LLP and every designated partner of the LLP shall be punishable with fine which shall not be less than Rs 2000 & may extend to `25,000.

25(2)

Change in Designated Partners

Where a person becomes or ceases to be a partner or where there is any change in the name or address of a partner, notice of the same signed by the designated partner and to be filed within 30 days to the Registrar in E Form - 4.

The LLP and every designated partner of the LLP shall be punishable with fine which shall not be less than Rs 2000 & may extend to `25,000

 

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