Annual Compliances of Limited Liability Partnership (LLP)

ANNUAL COMPLIANCES OF LIMITED LIABILITY PARTNERSHIP

What is LLP?

Limited liability partnership is a form of entity which entails features of a partnership firm and a company. The LLP is managed by its partners and it is a separate legal entity from its partners. The concept of Limited Liability Partnership has been brought by way of enforcing Limited Liability Act, 2008.All LLPs are required to maintain its books of accounts on cash basis or accrual basis. The books of accounts shall also be preserved in the registered office of the LLP for the specified period.

Benefits of LLP:

LLP can raise funds from its partners, Banks and NBFCs
The process of incorporation of LLP is simple and easy
LLP can easily Transfer its ownership
LLP is separate legal entity form its partners

FILING OF ANNUAL RETURN:

a. FORM-8

Form-8 consists of the statement of Account and Solvency. It consists of information related to the statement of assets of the LLP and liabilities and statement of income and expenditure of the LLP.
Form 8 should be filed within 30 days from the end of 6 months of the end financial year. i.e. by 30th October of each financial year.
Designated partners must sign the form digitally. Further, it must be certified by a chartered accountant, auditor or the accountant of the LLP.

There are two parts in Form 8. They are:

Part A – Statement of Solvency
Part B – Statement of Accounts, Statement of Income & Expenditure

b. FORM 11

Form -11 consist of annual return. It contains the details of all the partners, their contributions towards the LLP, etc.
Form-11 should be filed within 60 days of the end of financial year. i.e. on or before 30thMay every year.
It must be Digitally signed by one of the Designated Partners of the LLP. In case 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.
Basic details like Total obligation of contribution, total contribution received by partners of the LLP, Summary of Designated Partners and Partners etc.
Further, details of LLP and/ or company in which partner/ designated partner is a director/ partner is attached to the form.

What are the filing fees for Form 8 and Form 11?

The filing fees is Rs. 50 for Form-8 and for Form-11.