ANNUAL COMPLIANCES FOR LIMITED LIABILITY PARTNERSHIP (LLP)

LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership.

As LLPs are separate legal entities, it’s the responsibility of the Designated Partners to maintain a proper book of accounts and file an annual return with the MCA each financial year.

LLP ANNUAL COMPLIANCES

• Filing of the Statement of Account & Solvency:

Every LLP is required to prepare and close its accounts until the 31st March every year. They also need to prepare a Statement of Solvency (Accounts). For this purpose, LLP Form 8 is to be filed with the Registrar of Companies within 30 days from the end of 6 months of the end financial year. i.e. by 30th October of each financial year.

1.  Form 8 consists of information related to the statement of assets of the LLP and liabilities and statement of income and expenditure of the LLP;
2. It also contains a declaration on the solvency state of the LLP by its designated partners;
3. So there are two parts in Form 8:
4. Part A – Statement of Solvency
5. Part B – Statement of Accounts, Statement of Income & Expenditure
6. The form 8 also needs to be signed by the partners and requires to be certified by a practicing chartered accountant, company secretary or cost accountant

• Filing of Annual Return:

Every LLP is required to file Annual Return in Form 11 to the Registrar within 60 days from the closure of a financial year i.e. the Annual Return has to be filed on or before 30th May every year.

1. Form 11 contains the details of all the partners, their interest in other entities, their contributions towards the LLP, etc.
2. It also provides the information regarding whether there is any change in the management.
3. Form 11 must be Digitally signed by one of the Designated Partners of the LLP.
4. In case where total obligation of contribution of partners of the LLP exceeds Rs. 50 lakhs or turnover of LLP exceeds Rs. 5 crores, then LLP Form 11 needs to be certified by a Company Secretary in whole time practice.

• LLP Audit Requirement:

The following categories of LLPs are required to have their accounts audited from a Chartered Accountant in Practice:

1. LLP whose turnover, in any financial year, exceeds Rupees 40 lakhs or
2. LLP whose contribution, in any financial year, exceeds Rupees 25 lakhs.

• KYC  of Designated Partners:

From Financial year 2019-20 onwards - Every individual who has been allotted DIN on or before the end of the financial year, and whose DIN status is ‘Approved’, such individual is mandatorily required to file form DIR-3 KYC before 30th September of the immediately next financial year.

1. If the DIN holder does not file his annual KYC within the due date of each financial year, such DIN shall be marked as ‘Deactivated due to non-filing of DIR-3 KYC’ and shall remain in such Deactivated status until KYC is done with a fee of Rs.5000.

• While filing the form, the Unique Personal Mobile Number and Personal Email ID have to be mandatorily indicated and would be duly verified by One Time Password (OTP).
• The attachments to the form are:
• PAN, mandatory for Indian nationals.
• Aadhaar and passport, mandatory if a person has Aadhaar card or passport.
• Permanent Address Proof (Passport/Voter ID card/Driving license/Aadhaar card/Ration Card/Electricity bill/Telephone bill).
• Present Address proof if the present address is other than permanent address.
• The form should also be duly certified by a practicing professional (CA/CS/CMA).