| Company Details | |
| Act | No specified Act |
| Registration Requirement | No |
| Number of members | Only 1 |
| Separate Legal Entity | No |
| Liability Protection | Unlimited |
| Statutory Audit | Not mandatory |
| Ownership Transferability | No |
| Uninterrupted Existence | No |
| Foreign Participation | Not Allowed |
| Tax Rates | Low |
| Statutory Compliances | Less |
Tags: annual, compliance, for, llp, accounting change, business secretarial, compliances
A Limited Liability Partnership enjoys a separate status. Thus, an organization needs to maintain its active status by regularly filing with the Ministry of Corporate Affairs (MCA). Annual compliance filing is mandatory for any LLP, whether having a business or not. Annual compliance for LLP requires filing two separate forms. One of which is for Annual Return, whereas another one is for Statement of Accounts and Solvency. The forms are filed for reporting the activities and financial data for each financial year in the upcoming year. The failure to fulfill LLP Annual Compliance requirements levies an additional fee of ₹ 100 each day of a delay till the actual date of filing. Hence, apart from the mandate, the heavy penalty compels the Designated Partners to fulfill the requirements.
Legal compliance is a primary requirement for any business. The status of LLP annual filing is displayed at the Master Data of the LLP on MCA portal and the same can be accessed by any person. For loan approvals or any other similar requirements, compliance is a major criterion to measure the credibility of the organization.
The forms filed by the LLP are accessible by companies. Hence, while entering into contracts or major projects, the concerning party may also inspect the financial worth. LLP annual filing provides the record of its financial worth and capacity to an interested person or party.
In case of consecutive default in annual filing, the LLP can be declared as defunct or receive default status. Also, the partners can be declared as defaulters and may also be disqualified from their further appointment in LLP or company. Hence, LLP needs to file the return to maintain active status. Regular filing also saves the LLP from heavy additional fee and penalties.
For conversion of the LLP into any other organization, annual filing is very essential. The regular compliance records ease the conversion task. The same applies in case of closure of LLP. Even if the LLP was non-operational, the Registrar may ask to fulfill annual compliance, with additional LLP filing fee, if applicable.
PAN Card and Certificate of Incorporation of LLP
The LLP Agreement along with any supplementary agreement, if any
Financial Statement of LLP duly signed by the Designated Partners
DSC of all Designated Partners is required
30th May
30th October
Whether Annual Filing is necessary for the LLPs?
LLP Annual Filing is necessary for every LLP since its incorporation. From the closure of its first financial year, the LLP must file both the forms within the prescribed time limit.
The annual compliance is mandatory for every LLP, irrespective of the number of transaction, turnover or commercial activity undertaken.
What is the penalty for non-filing/delayed filing of annual compliance forms for LLP?
Whether the Audit of Financial Statements is required for LLP RoC filing?
The audited books of accounts are necessary for the LLP falling under any of the below-mentioned criteria:
1) If turnover of the LLP exceeds ₹ 40 Lakh; or
2) Total contribution of Partners exceeds ₹ 25 Lakh.
If LLP does not fall under any of the above criteria, statements with the signature of partners are sufficient.
When does the first Financial Year of the LLP end?
Due dates of LLP compliance are based on the closure of each financial year. Financial Year of every LLP must be closed on 31st March. However, period of financial year depends on the month of its incorporation:
a) LLPs registered between 1st April and 30th September: The LLP must close its financial year on 31st March of next calendar year. Suppose LLP is registered on 1st May, 2018 , the same should close its financial year on 31st March, 2019.
b) LLPs registered between 1st October and 31st March: The LLP has an option to choose the end of its financial year. For instance if the LLP is registered on 30th October, 2018 the same can close its financial year either on 31st March, 2019 or 31st March, 2020.
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