Annual filings for Limited Liability Partnership (LLP)

Limited Liability Partnership is a individual/seperate legal entity recorded under the Ministry of Corporate Affairs (MCAs) in India. For registration into an LLP, there should be at most limited two persons as partners where mandatorily one has to be an Indian citizen and a resident. The partners in an LLP should take responsibility for maintaining a proper book of accounts, filing an Income Tax Return, and submitting an annual return with the Ministry of Corporate Affairs (MCA) on every financial year.

To establish a Limited Liability Partnership (LLP), the returns should be filed periodically for maintaining compliance and escape substantial penalties under the law for non-compliance. A Limited Liability Partnership has only few compliance to be succeeded every year which is certainly lower as compared to the compliance needs to be placed on the private limited companies. However, the fines seem to be quite large. While non-compliance might only impose a Private Limited company INR 1 lakh in terms of penalties, it might impose an LLP up to INR 5 lakh.

• Declarations Of Accounts And Solvency: All registered LLPs are expected to have their books of accounts in place and fill in data concerning the profit made, and other economic data in regards to sales, and submit it in Form 8, each year. Form 8 must be attested by the impressions/signatures of the designated partners and should also be certified by a practicing 'chartered accountant' or a practicing 'company secretary' or a practicing 'cost accountant.' Neglecting to file, the statement of accounts & solvency records within the designated due date will lead to a fine of INR '100' per day. The due date to submit form 8 for the financial year 2017-18 is October 30, 2018.
• Arranging Annual Return: Annual Returns are to be submitted in the designated Form-11. This Form is to be entertained as a summary of the management affairs of LLP. These are like numbers of partners, simultaneously with their names. However, form 11 has to be filed by May 30 every year.

• Annual returns require to be filed with the Registrar of Companies (ROC).
• Annual returns to be accompanied and filled up as per the prescribed format of LLP Form 11
• This is needed to be filed within 60 days from the close of the financial year. This could be done on the 30th of May of each year.
• The LLP annual compliance ought to be met by every registered LLP, even if there is no marketing activity. It has to be also obtained if the LLP has been closed down and whether or not a business bank account exists.

Form 11 is a Yearly return that is to be filled by all LLPs irrespective of turnover throughout the year. Even when an LLP does not convey out any services or business during the business year, Form 11 needs to be filed. Apart from Essential data about Name, Address of LLP, details of Partners/ Designated Partners, other information that need to be submitted are:

• Total enrichment or contribution by/to partners of the LLP
• Characteristics of notices obtained towards Penalties imposed / compounding offenses performed during the financial year which must be e-filed on the MCA gateway. The pre-fill option is available to reduce your efforts also.

• Overcharge:

  A surcharge shall extend the measure of income-tax at the rate of 12% of such tax, wherever total income exceeds Rs. 1 crore rupees. Mostly, the surcharge shall be subjected to marginal relief. It is where revenue exceeds Ra. 1 crore rupees, the total cost payable as income-tax. The tax does not pass the total amount payable as income-tax on total revenue of Rs. 1 crore rupees by higher than the amount of income that exceeds Rs. 1 crore rupees.

• Health And Education Blueprint:

  The amount of income-tax and the mentioned surcharge, should be further increased by health and education cess measured at the rate of 4% of those income-tax and surcharge.

• Alternative Merest Tax:

  Tax due by LLP cannot be less than 18.5% (raised by Surcharge and HEC) of "adjusted total income" as per 'section 115JC'.