What is a Limited Liability Partnership?

Limited liability is a type of business form that is governed by the Limited Liability Partnership Act, 2008. LLPs are neither the body corporate nor the partnership firm. However, they have the mixed characteristics of both business types. LLPs have limited liabilities.

LLP is run by the designated partners. The rights, liabilities, duties, etc of the designated partners are decided by the mutual LLP agreement. LLPs should be set up and run for a lawful purpose. Just like a company, an LLP also has to fulfil many LLP annual compliance.

What are the various LLP Annual Compliances?

The LLP is a hybrid of a company and a partnership firm. Therefore, there are many compliances that an LLP is required to carry out to avoid legal action. There are various compliances that are applicable to LLP, such as:

Filing of Statement of Accounts and Solvency

Every LLP is required to maintain its books of accounts and file the information related to its books of accounts with the Registrar of Companies (ROC), along with the information related to the profits made during the year. The statement of accounts and solvency is filed in Form 8. It shows whether the LLP is financially sound.

The statement of accounts and solvency should be filed within 30 days from the end of 6 months of the financial year, i.e. on or before October 30th of every financial year.

LLP Annual Return

The LLP annual compliance is important for the LLP as well. Every LLP is required to file an annual return containing information related to its management, affairs, employees, etc. The annual return of an LLP is filed under Form-11. The LLP annual filing compliance should be done within 60 days of the end of the financial year, i.e. 30th May.

Audit Requirements for LLP

The provisions of the LLP Act, 2008, and the rules made thereunder also provide the requirement of a tax audit for certain LLP's.

The LLP having:

• Turnover of Rs. 40 Lakh or more; or
• Contribution of more than Rs. 25 Lakh

should get their books of accounts audited by a practising chartered accountant. The deadline for tax filing is September 30th for LLP's with tax audit obligations. In other cases, the deadline for filing tax returns is July 31st. The tax return by LLP is filed in Form ITR-5.

Documents for LLP Annual Compliance

The documents required for LLP annual compliance are:

• Statement of assets and liabilities
• Statement of income and expenditure
• Details of designated partners and employees
• Information related to LLP affairs

Due Date for LLP Annual Compliance

Every LLP should know the due dates of their LLP annual compliance to avoid the situation of non-compliance. Non-compliance can bring the stringent norms on LLP with other adverse situations. The due dates for LLP annual compliance are:

Fees for LLP Annual Compliance

Every LLP shall file its annual return, tax return, and statement of accounts and solvency timely with the requisite fees. The fees for Form 8 and Form 11 are given as follows:

Choose BizFoc for LLP Annual Compliance

The LLP is gaining importance with the growing business market in India. People are switching to running their business as an LLP. This also welcomes the numerous LLP annual compliance and other compliances in the picture. But no matter what the compliances are, BizFoc can help you meet the deadlines and provide you with:

• End-to-end advisory services
• The benefit of meeting the compliances before the last date
• Saving cost of fines and penalties
• Building the trust of customers by being a good corporate citizen
• Advises to choose the best path

Conclusion

An LLP is a fusion of a company and a partnership firm, having a separate legal entity and being run by the designated partners. An LLP is required to comply with various compliances like annual returns, tax audits, tax returns, and statements of accounts and solvency. These are some of the important compliances, the breach of which can cause hefty fines.

Compliance can sometimes be hard for an LLP; however, BizFoc can be a compliance partner by helping you with timely filing, meeting the deadline before due dates, filing accurate information, and building the brand image by being a good corporate citizen. Trust BizFoc and contact us today!

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