Limited Liability Partnership is a unique form of business registration in India that gives the benefit of both Company and a Partnership. Low set up cost and lesser compliances make it more popular amongst entrepreneurs.
There are only a few compliances that are applicable to Limited Liability Partnership and those are:
- Annual Return
- Statement of Accounts or Financial Statements of the LLP
- Income Tax Returns Filings
- Audit Requirements (if any)
Now a day’s most of the Entrepreneurs in India or startups are confused that filings of the Annual Returns are not a mandatory thing even if they are not doing any business, but this is not the case. Every LLP is required to do the Annual Compliances even if they are not doing any business.
So let’s understand the above-mentioned compliances one by one:
Annual Return is a Summary of LLP's Partners like whether there are any changes in the management of the LLP or not. Every LLP is required to file Annual Return in Form-11 with the Registrar within 60 days from the closure of financial year i.e the Annual Returns has to be filed on or before 30th May every year. i.e 30-05-2018 is the last date for filing annual Returns this year. It may be noted that Form 11 or Annual Return is Applicable on those LLP which is registered until the 30-09-2017. It may be noted that if your LLP is registered after the 01-10-2017 then you have to file LLP Annual Returns in the year 2019.
Statement of Accounts or Financial Statements of the LLP
Every LLP or any other legal entity has to prepare their accounts every year. LLP is required to prepare and close its accounts until the 31st March every year. From- 8 is to be filed by at least two Designated Partners with the Registrar within 30 days after completion of six months of Financial Year. Accordingly, 30th October is the last date for filing annual accounts every year. It may be noted that if your LLP is registered after the 01-10-2017 then you have to file LLP Annual Returns in the year 2019.
Income Tax Returns Filing:-
LLP has to file the Income Tax Returns every year. LLP Income tax return is basically a form where you show your LLP Income and calculate the tax liability & pay the taxes to the government. LLP have to calculate their tax liability from their financial statements every year and are required to file Returns by 31st July every year. However, it may be noted that any LLP on which Audit is applicable are required to file returns every year by 30th September.
Audit Requirement under LLP Act:
Only those LLP whose annual turnover exceeds Rs. 40 lakhs or whose contribution exceeds Rs. 25 lakhs are required to get their accounts audited by a qualified Chartered Accountant.
Compliance is not that difficult as you think. For detailed information, you can also visit wazeer.com
I hope you will find the article useful.