A Limited Liability Partnership (LLP) is a popular form of business structure in India that combines the advantages of a partnership with the benefits of a limited liability company. Like any other form of business entity, an LLP is required to file annual returns with the Ministry of Corporate Affairs (MCA). In this article, we will discuss everything you need to know about filing LLP annual returns.
What are LLP Annual Returns?
LLP annual returns are the financial statements that an LLP is required to file with the MCA every year. These statements contain information about the financial health of the LLP, including details of its revenue, expenses, assets, liabilities, and profits. LLP annual returns are a crucial aspect of compliance and help the MCA keep track of the financial activities of an LLP.
Who needs to file LLP Annual Returns?
All LLPs registered in India are required to file annual returns with the MCA. The filing of annual returns is mandatory and failure to comply can result in penalties and legal consequences. It is important to note that even inactive LLPs are required to file annual returns.
When to file LLP Annual Returns?
The LLP annual returns must be filed with the MCA every year. The due date for filing LLP annual returns is 30th May of the financial year immediately following the year for which the return is being filed. For instance, the annual return for the financial year 2021-22 must be filed by 30th May 2023.
What are the Documents Required for Filing LLP Annual Returns?
The following documents are required for LLP annual return filing:
- LLP Form 11: This form contains information about the number of partners in the LLP, changes in the management or ownership structure, and other significant events that occurred during the financial year.
- LLP Form 8: This form contains information about the financial statements of the LLP, including balance sheet, profit and loss account, cash flow statement, and statement of changes in equity.
- Auditor’s Report: The auditor’s report is a document that is prepared by the LLP’s auditors and provides an independent assessment of the financial statements.
- Income Tax Return: The income tax return is a document that contains information about the income, deductions, and tax liability of the LLP.
How to File LLP Annual Returns?
LLP annual returns can be filed online through the MCA website using the following steps:
Step 1: Visit the MCA website and log in to your account using your LLP Identification Number (LLPIN) and password.
Step 2: Click on the “e-filing” tab and select “LLP Forms” from the drop-down menu.
Step 3: Select the appropriate forms (Form 8 and Form 11) for filing LLP annual returns.
Step 4: Fill in the required details in the forms and upload the supporting documents.
Step 5: Pay the filing fees online and submit the forms.
Once the LLP annual returns have been filed, the MCA will review the documents and issue a certificate of filing if everything is found to be in order.
Penalties for Non-Compliance
LLPs that fail to file annual returns on time may be subject to penalties and legal consequences. The penalty for non-filing or late filing of LLP annual returns is Rs. 100 per day for each day of default, subject to a maximum of Rs. 5,000. In addition to this, the LLP may be disqualified from doing business, and the partners may be liable for legal action.
Filing LLP annual returns is a crucial aspect of compliance for LLPs in India. It helps the MCA keep track of the financial activities of an LLP and ensures that the LLP is meeting its legal obligations. LLPs must file annual returns on time to avoid penalties and legal consequences