What are the LLP Annual Filing Due Dates which you should be aware of?

No Comments

For a Limited Liability Partnership (LLP), the returns should be filed periodically for maintaining compliance and escape heavy penalty under the law for non-compliance. A Limited Liability Partnership has only few compliances to be followed every year which is amazingly low as compared to the compliance requirements placed on the private limited companies. However, the fines seem to be quite large. Whilst non-compliance might only charge a Private Limited company INR 1 lakh in terms of penalties, it might charge an LLP up to INR 5 lakh.

Table of Contents

What is LLP Annual Filing?

Every Limited Liability Partnerships (LLPs) is required to file its annual return within 60 days from the end of the financial year and Statement of Account & Solvency within 30 days from the end of six months of the close of financial year. 

Even if LLP does not do any business, it has to follow with a statutory requirement such as Annual Return, Income Tax Return, Profit and Loss Account, Balance Sheet, every year. Unlike LLP Companies are required to maintain their financial year, as 1st April to 31st March.

What are the LLP Annual Filing Due Dates which you should be aware of?

Advantages of LLP Annual Compliance

The following benefits can be achieved by complying with the relevant regulatory requirements of the business:

Reputation

By complying with the requirements of the Registrar of Companies and the Ministry of Corporate Affairs, the LLP and partners will increase their reputation in the eyes of the public. Through this process an LLP can increase its compliance requirements. More investors would be willing to invest in an LLP that complies with the requirements of the law.

Compliance

By filing all compliances within a particular period of time, the LLP would be free from any form of compliance requirements. By considering this, an LLP can fulfil its objectives.

Less Burdens

By complying with the requirements of the authorities, the LLPs would face lesser burden when it comes to compliance requirements. If compliances are not followed up or filed by the LLP, it can be detrimental to the development of the LLP. Hence it is crucial that all the requirements related to compliance are followed by the partners of the LLP.

Foreign Direct Investment

The Government of India have recently brought out guidelines for FDI in LLPs. Foreign direct investment is a form of direct investment or indirect investment by a foreign company in the shares or capital structure of an Indian entity. By complying with the requirements of the authorities, foreign investors are more likely to invest in LLPs. Investment through FDI in an LLP can occur through the automatic route and the approval route. Through such investment the LLP can increase the amount of capital.

Hence it is suitable for LLPs to consider all the requirements related to annual compliance.

Documents Needed for Annual Filing of Compliance for LLP

  • PAN Card & COI: PAN Card and Certificate of Incorporation of LLP
  • LLP Agreement: The LLP Agreement along with any supplementary agreement, if any
  • Financial Statements: Financial Statement of LLP duly signed by the Designated Partners
  • Digital Signature: DSC of all Designated Partners is required
  • LLP Identification Number: Verification
  • Name of the LLP: Proof of Title
  • Registered office address of the LLP: The documentation needed regards to Location
  • Business Classification of the LLP: Record of Business/ Service/Occupation/Others
  • Principal business enterprises of the LLP
  • Aspects of Designated Partners and Partners of the LLP
  • Total responsibility for the contribution of partners of the LLP
  • Total input supported by all partners of the LLP
  • Review of Designated Partners and Partners
  • Details of penalties imposed on the LLP, if any
  • Facts of intensifying offenses, if any
  • Features of LLP and or company in which Partners hold the position of Director/Partner.

Annual Filing of LLP: Forms to be filed

An LLP is required to file the following forms with the registrar:

  • Form-8: Statement of account and solvency
  • Form 11: Annual return

Filing of Annual Return – FORM-8

Here below is information regarding Form-8, those are as follows: –

What consists in the Form-8?

Form-8 consists of a statement of Account and Solvency. It consists of information related to a statement of assets of LLP and liabilities provide statement of income & expenditure of the LLP.

What is a Due date of filing of the form?

Form 8 has to be filed within 30 days from before end of 6 months of a financial year i.e. by 30th October of each financial year.

Who will sign the form?

Designated partners must sign form digitally. Further, it has to be certified by a chartered accountant, auditor or an accountant of the LLP.

How many parts are there in the form?

There are two parts in Form 8. They are:

  • Statement of Solvency
  • Statement of Accounts, Statement of Income & Expenditure

Filing of Annual Return – FORM- 11

Here below is information regarding Form-11

What consists of Form 11?

Form -11 consist of an annual return. It contains the details of all the partners and their contributions towards the LLP.

What is the Due date of filing of this Form-11?

Form-11 must be filed within 60 days of the end of financial year i.e. on or before 31st May every year.

Who will sign the form?

It has to be digitally signed by one of a Designated Partner of the LLP. If in case total obligation of contribution of partners of the LLP exceeds from Rs. 50 lakhs or turnover of LLP exceeds from Rs. 5 crores, then LLP Form-11 needs to be certified by Company Secretary in whole time practice.

What is required to File LLP Form 11?

Basic details such as Total obligation of contribution, total contribution received by partners of the LLP, Summary of Designated Partners and Partners Further complete details of LLP and its partner/ designated partner/ partner must also attach with the form.

ROC annual Filings

Audit Requirements Under LLP

The accounts of the LLP whose turnover in any monetary year surpass rupee forty (40) lakhs and contribution surpasses twenty-five (25) lakhs needs to be audited by the well-qualified expert Chartered accountant. Additionally, accomplices of LLP on their optional side despite turnover or contribution may also get their LLP accounts audited. As per the income tax, the need for the annual filing for LLP arises when turnover for surpasses rupee hundred (100) Lakh.

Extended Due Dates for Financial Year 2020-21

MCA vide its general circular No 06/2021 dated 3rd May 2021 has been decided to grant additional time for filling of certain forms without any additional fee, which were/would be due for filling between 1st April 2021 to 31st May 2021, under the companies act 2013 and LLP Act 2008.

If a LLP is incorporated before 1st October 2020 then First Financial Year of such LLP shall be closed on 31st March 2021 and such LLP need to be filed its Annual Return in Form-11 on or before 30th May 2021 and Declaration of Solvency in Form-8 on or before 30th October 2021 for Financial Year 2020-21

But after this General Circular the due date for filling of Form 11 has been extended up to 31st July 2021 without any additional fee.

Due Dates of All LLP Compliances for financial year 2021

Here is the tabular guide for your easy understanding of extended due dates of LLP Compliances

Form No. Due date
Form 3 Within 30 days of its incorporation
Form 11 On or before 31st July, 2021
Form 8 On or before 31st October, 2021

Final Words

The requirements mentioned above are compulsory to be followed irrespective of any number of transactions or amount of turnover. Limited Liability Partnership which is flourishing in the business world has bear the burden of multiple compliances to avoid the liability arising from fines and penalties. But is it only for avoiding penalties? The answer is no. Since LLP has to comply way fewer compliances as compared to company it is always better to file all the forms and returns before the due date to escape hefty penalties with timely annual LLP compliance filing.

Share this article with your network

LegalWindow.in is a professional technology driven platform of multidisciplined experts like CA/CS/Lawyers spanning with an aim to provide concrete solution to individuals, start-ups and other business organisation by maximising their growth at an affordable cost. Our team offers expertise solutions in various fields that include Corporate Laws, Direct Taxations, GST Matters, IP Registrations and other Legal Affairs.

About us

LegalWindow.in is a professional technology driven platform of multidisciplined experts like CA/CS/Lawyers spanning with an aim to provide concrete solution to individuals, start-ups and other business organisation by maximising their growth at an affordable cost.

Ask an Expert

More from our blog