LLP Annual filing in India and filing an income tax return are both inexpensive at Complynest. With the assistance of the top CA for LLP, get all of your business returns submitted on a regular basis to avoid legal repercussions for non-compliance.
A
Limited Liability Partnership or LLP enjoys a separate status in the business
market. Therefore, an organization requires to maintain its active status by
filing the annual compliance with the Ministry of Corporate Affairs (MCA) on a
regular basis. Annual compliance filing of LLP is necessary, whether the
business is operating or not. Annual compliance for LLP needs filing two
separate forms, one is for Annual Return and another one is for the report of
Accounts and Solvency.
Record of Financial Worth
The
forms filed by Limited Liability Partnership are approachable by companies.
Therefore, while entering into major projects or contracts, the authorized
party may also visit or audit the financial worth. LLP annual filing submits
the record of financial worth of the company and capacity to an interested
individual or party.
Higher Credibility
Formal
compliance is a basic requirement for any entity or business. The status of
Limited Liability Partnership annual filing is exhibited at the Master Data of
the LLP on MCA portal and the same can be obtained by any individual. Annual
compliance is a major criterion to evaluate the credibility of the business
entity for any loan approvals or any other same kind of requirements.
Easy conversion and closure
Annual
filing is mandatory for the conversion of the LLP into any other type of
company or organization. The regular compliance reports ease the conversion
process. The same employ in case of closure of an LLP firm. Even if the
LLP was not working, the Registrar may demand to file the annual compliance,
along with the LLP filing fee, if needed.
Maintain active status and avoid penalties
In
case of back-to-back default in the annual filing, the Limited Liability Partnership
can be announced as defunct or obtain default status. Also, the partners can be
announced as defaulters and also can be disqualified from their farther
appointment in LLP or any other company. Thus, it is mandatory to file the
annual return to maintain the active status of the LLP. Filing the annual
returns also saves the LLP from heavy penalties and additional fees.
Significant
Advantages: Powers enjoyed by Limited Liability Partnerships are as follows:
Unlike
all types of Companies, LLP also mandatorily have to record their financial
year, as April 1st to March 31st of every year. Thus, the due of LLP annual
return is on May 30th and the due of report of Account & Solvency is on
October 30th of every financial year. Apart from the MCA annual return filing,
LLPs must also mandatorily file IT returns each year.
Form
8 should be filed within a month or 30 days from the end of 6 months of the
year with some specified fee. This form should be signed digitally by 2
designated partners of the company and it should be certified by an authorized
chartered accountant or company secretary or cost accountant. Form 8 contains
Statement of Solvency, Statement of Income & Expenditure and Statement of
Accounts
Form
11 holds information of the number of partners, total contribution received by
all partners, total number of partners, information of body corporate as
partners and complete summary of partners. All LLPs must file this form within
two months or 60 days from the closure of the every financial year with the
specified fee. Hence, the filing LLP Form 11 due is on 30th of May every year.
LLPs
should file IT returns with Form ITR 5. This form can be filed online by
visiting the official website of the income tax department utilizing the
digital signature certificate of the designated partner of the LLP. If tax
audit is not required, the LLP can file the tax on July 31st and for LLP whose
contribution exceeded Rs. 25 Lakh or whose turnover exceeds more than Rs. 40
Lakh are needed to get their accounts statements audited by an authorized
Chartered Accountant. The deadline for tax filing for LLP needs to get an audit
is September 30th.
LLP
is a separate legal entity and it is completely responsible of the Designated
Partners to maintain a proper report of accounts and file annual returns to the
MCA every financial year. There is no need to audit the accounts unless the
concerned LLP’s annual turnover exceeds more than Rs.40 lakhs or if the
contribution is more than Rs.25 lakhs.
There
are 3 essential compliances needed for LLP compliances every year..
The
LLP whose annual turnover exceeds more than Rs. 40 lakhs or whose LLP capital
contribution exceeds more than Rs. 25 lakhs
if
the status is SRN or 'Sent for Resubmission, you are required to submit your
E-Form again to correct or edit the incompleteness pointed out by the concerned
MCA office.
Each
LLP has to submit LLP Form 8 every year, and it is known as "Statement of
Accounts and Solvency", it contains the details related with financials of
LLP such as asset-liability etc.
You
can complete the Company registration process within 15-35 working days after
you have submitted all your needed documents.