Annual Filings For An LLP
July 24, 2019
Annual Filings For An LLP
Limited Liability Partnership is a corporate body having a different legal entity and everlasting succession. There should be at least two members at the time of formation. An LLP is capable of owning and holding assets by its own name. It is more stable when compared to general partnership firms.
A Limited Liability Partnership has just a couple of compliance requirements each year. This is extremely low, as compared to the several requirements placed on a private limited company. However, the fines are also larger. While non-compliance may only cost a private limited company up to Rs. 1 lakh in penalties, it may cost an LLP up to a tenure of Rs. 5 lakh.
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Thus, annual filing is a very crucial aspect for an LLP registration. Here are the two compliances LLPs need to complete for 2016:
1. Declaring the statement of accounts and solvency in Form 8
2. Annual returns in Form 11
Both these forms need to be submitted annually. The due date for filing returns is usually October 30 each year. Filling the forms, and complying with statutory requirements such as annual returns, profit and loss account and so on, are mandatory, even if the LLP has not done any business in that financial year.
Statement of Accounts & Solvency
All registered LLPs are required to prepare their accounts and fill in information regarding the profit earned, or any other financial inputs regarding business, and submit it in Form 8, every year. The last date for closing of accounts for the year is March 31.
The Form 8 should be accompanied by the signatures of the designated partners and also certified by a chartered accountant, company secretary or cost accountant. Failure to file the Statement of Accounts and Solvency report within the deadline will lead to a fine of Rs. 100 per day.
The last date for filing Form 8 will be October 31, 2017 for the current financial year.
Annual returns are filed in Form 11. This form is a summary of the management affairs of the LLP, such as number of partners and their names. Form 11 needs to be filed within 60 days of the closure of financial statement for the current financial year.
The last date for filing annual returns of LLP for 2016-17, therefore, is May 31, 2017. Non-compliance could result in a fine of Rs. 25,000 to a tenure of Rs. 5 lakh.
Income Tax Returns
This is not a compliance exclusive to LLPs, but any business (or individual), though all LLPs must also file income tax returns.
The last date for filing income tax returns for LLPs is September 30, every year. Even if the LLP has not done any business for the current financial year, they are required to file a Nil Income Tax returns with the authorities.
Registration of a firm under the court of law is a major factor that enables the smooth running of a business. The name allotted to a limited liability partnership remains valid for three months from the date of approval. Also, LLPs require separate Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN).