Annual compliance for Limited Liability Partnerships (LLPs) is crucial to ensure adherence to the statutory requirements outlined in the Limited Liability Partnership Act, 2008. Failing to comply with these regulations can lead to penalties and other legal issues. Here’s an overview of the essential components of LLP annual compliance.
Key Components of LLP Annual Compliance
- Preparation of Books of Accounts
- Statement of Accounts and Solvency: Every LLP must prepare a Statement of Accounts and Solvency by filing Form 8. This document reflects the financial standing of the LLP.
- Preparation of Financial Statements
- This involves creating general-purpose financial statements, which include:
- Balance Sheet
- Income Statement
- Statement of Profit & Loss
- Statement of Cash Flows
- This involves creating general-purpose financial statements, which include:
- Statutory Audit by Independent Auditor
- A statutory audit is mandatory for LLPs with an annual turnover exceeding INR 40 lakhs or total paid-up capital exceeding INR 25 lakhs. This audit is conducted to provide a true and fair view of the LLP’s finances to the government.
- Filing of Annual ROC Returns
- LLPs must file LLP Form 8 and LLP Form 11 with the Registrar of Companies (ROC) to report their financial statements.
- Filing of Income Tax Returns
- LLPs that are subject to a tax audit must file their income tax returns by September 30 each year. Other LLPs need to file by July 31.
- Maintenance of Statutory Registers
- LLPs are required to maintain various statutory registers, as mandated by the LLP Act, to ensure transparency and compliance with legal requirements.
Detailed Annual Compliance Requirements
- Preparation of Financial Accounts: As mandated, all LLPs must prepare their financial accounts through the filing of Form 8 to maintain transparency.
- Annual Return Filing: Each LLP is required to file an annual return within 60 days of the financial year-end by submitting Form 11.
- Statutory Audit Requirements: An independent audit is only required if the LLP’s annual turnover exceeds INR 40 lakhs and/or its total paid-up capital exceeds INR 25 lakhs.
- Income Tax Compliance: The Income Tax Act requires all LLPs to file their income tax returns. If the turnover exceeds INR 60 lakhs, a tax audit is also mandatory.
Our Process for LLP Annual Compliance
- Document Submission: Provide necessary information and documents via email.
- Package Selection and Payment: Choose from our available packages and pay online using various payment modes.
- Task Assignment: Your task will be assigned to a dedicated professional.
- Preparation of Documents: Our expert will prepare your books of accounts and annual return.
- Filing of Returns: We will file ROC and Income Tax Returns on your behalf.
- Delivery of Compliance Documents: You will receive all original compliance documents delivered to your doorstep.
Frequently Asked Questions
Q1: What is Form 8?
Form 8 is required for all LLPs to prepare a Statement of Account and Solvency, detailing profits and financial liabilities.
Q2: What is Form 11?
Form 11 must be filed within 60 days of the financial year-end to prepare the annual return, which is verified by the Registrar of LLPs.
Q3: When is a statutory audit mandatory for an LLP?
A statutory audit is mandatory if the annual turnover exceeds ₹40 lakhs and/or the total paid-up capital exceeds ₹25 lakhs.
Q4: When is a tax audit mandatory for an LLP?
A tax audit is required if the annual turnover exceeds ₹1 crore during a financial year.