Introduction
LLP is a body corporate which is governed by Limited Liability Partnership Act, 2008 (“Act”) and LLP Rules 2009 (“Rules”). It is fusion of the features of the partnership and company.
Chapter VII of the Act states about Financial Disclosures and Annual Filing of LLP whereby LLP are required to follow the provision given under respective sections.
Type of E-Forms
There are two E forms which are required to be filed by any LLP.
1. Statement of Account and Solvency in Form 8
Rule 24(4) of the Rules states every limited liability partnership shall file the Statement of Account and Solvency in Form 8 with the Registrar, within a period of thirty days from the end of 6 months of the financial year to which the Statement of Account and Solvency relates.
Statement of Account and Solvency shall be signed on behalf of the limited liability partnership by its designated partners as per rule 24(6) of the Rules.
2. Annual Return in Form 11
As per section 35 of the Act, every limited liability partnership shall file an annual return with the Registrar in Form 11 within 60 days from closure of financial year.
As per rule 25(2) of LLP Rules, 2009, the annual return of an LLP having:
Turnover up to Rs. 5 crore during the corresponding financial year
Or
Contribution up to Rs. 50 Lakh
shall be accompanied with a certificate from a designated partner, other than the signatory to the annual return, to the effect that annual return contains true and correct information.
Else
If the above said limit exceeds than the annual return shall be accompanied with a certificate from a Company Secretary in practice to the effect that he has verified the particulars from the books and records of the LLP and found them to be true and correct.
Books of Account for LLP
As per rule 24(2) of the Rules, the books of account of LLP shall contain
- particulars of all sums of money received and expended: Profit & Loss Account
- a record of the assets and liabilities of the limited liability partnership; Balance Sheet
- statements of cost of goods purchased, inventories, work-in- progress, finished goods and cost of goods sold; Cost Account
- any other particulars which the partners may decide; Trial Balance, Reconciliation etc.
what is included in this
1. Preparation of documents;
2. Liasioning with the department;
3. 24/7 mail support to assist you;
4. Filing of Form 8 and Form 11;
5. Certification in Form 8 and Form 11;
6. Future reminder in respect to annual compliance
FAQ’s
Is Audit of LLP mandatory?
LLP Act has prescribed certain limits, if any LLP exceeds the limit then it has to mandatorily get its audit done through a qualified Chartered Accountant in practice.
As per rule 24(8) of the Rules, if any LLP exceeds either of limits as given below than its accounts needs to be audited:
- Turnover Exceeds Rs. 40 Lakh in any financial year
OR
- Contribution exceeds Rs. 25 Lakh
What E forms are required to be Filed by LLP on Annual basis?
|
Form 8 |
Statement of Account & Solvency |
Within 30 days from the end of six month of the Financial Year |
|
Form 11 |
Annual Return |
Within 60 days from the closure of the Financial Year |
What are the consequences of non filing?
|
Non Compliance |
Provision |
Penalty |
|
|
LLP |
Designated Partner |
||
|
Form 8 |
Section 34(5) |
Fine not less than Rs. 25,000 which may extend Rs. 5 Lakh |
Fine not less than Rs. 10,000 which may extend upto Rs. 1 lakh. |
|
Form 11 |
Section 34(2) |
Fine not less than Rs. 25,000 which may extend Rs. 5 Lakh |
Fine not less than Rs. 10,000 which may extend upto Rs. 1 lakh. |
For how many years LLP should preserve its Record?
As per rule 24(3) of the Rules, Limited liability partnership is required to keep books of account for 8 years from the date on which they are made.
How auditors can be appointed in LLP?
As per rule 24(10) of the Rules, an auditor or auditors of a limited liability partnership shall be appointed for each financial year of the LLP for auditing its accounts.