An LLP is a type of business entity where all the partners have limited liabilities. Each partner is only responsible for themselves and not liable for other partners’ negligence. A Limited Liability Partnership is most preferred by corporations.
An LLP needs to maintain its active status by regularly filing all the mandatory compliances with the Ministry of Corporate Affairs, It is mandatory for any LLP, whether running/having a business or not.
LLP Form 11
All LLPs must file Form 11 within 60 days from the closure of the financial year. There is a prescribed fee that needs to be paid. This form has the following details mentioned
- Total number of partners
- Total number of contribution received from all partners
- Details of body corporate as partners
- Summary of partners
LLP Form 8
It is mandatory to file Form 8 within 30 days from the end of six months of the financial year. This form needs to be signed by 2 designated partners and certified by a chartered accountant/company secretary/cost accountant. This form has the following details mentioned
- Statement of Solvency
- Statement of Accounts
- Statement of Income and Expenditure
LLP Tax Audits
The accounts of a Limited Liability Partnership do not require auditing unless the annual turnover exceeds Rs 40 lakhs and the contribution exceeds Rs 25 lakhs.
Income Tax Return Filing
Form ITR 5 is used by the LLP to file income tax returns. This form can be filed on the income tax website using the Digital Signature of the designated partner.
All LLPs must maintain a few documents for the purpose of inspection. Some of the documents that need to be maintained include incorporation document, names of all the partners and changes made, fee payment proof, statement of account & solvency & annual return filed with the Registrar at its registered office.
Delay in filing any of the returns will attract additional Fee of Rs. 100 per day till the date of filing the return.
Filing of the above-mentioned forms needs to be done for every LLP formation. You can also take the help of our professionals who will answer all your queries.
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