Expert Support for LLP Annual Filing Obligations
Ensure effortless compliance with LLP annual filing requirements with our expert services.
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Overview
Limited Liability Partnership (LLP) is a body corporate governed by the LLP Act, 2008 (“Act”) and LLP Rules, 2009 (“Rules”). It combines features of both partnerships and companies.
Chapter VII of the Act outlines the financial disclosures and annual filing requirements for LLPs, mandating compliance with the provisions specified in the respective sections.
Type of Annual E-Forms
There are two E forms which are required to be filed by any LLP.
- Statement of Account and Solvency in Form 8
Rule 24(4) of the Rules states every LLPs must maintain their books of accounts using the Double Entry System and prepare a Statement of Accounts at the end of each financial year, i.e., on March 31st. The 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 and subsequently Form 8 must be filed annually by October 30th.
- Annual Return in Form 11
As per section 35 of the Act, every limited liability partnership (LLP) is required to submit an annual return to the Registrar in Form 11 within 60 days from the end of the 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 then 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 an LLP must contain the following:
(a) particulars of all sums of money received and expended by the limited liability partnership and the matters in respect of which the receipt and expenditure takes place;
(b) a record of the assets and liabilities of the limited liability partnership;
(c) statements of cost of goods purchased, inventories, work-in-progress, finished goods and cost of goods sold; and
(d) any other particulars which the partners may decide.
What is included in this
FAQs
Limited Liability Partnerhsip Act has prescribed certain limits- If any LLP exceeds the prescribed limits, it must undergo a mandatory audit conducted by a qualified Chartered Accountant in practice.
As per rule 24(8) of the Rules, if an LLP exceeds either of the following limits, its accounts must be audited:
- Turnover exceeds Rs. 40 lakh in any financial year, or
- Contribution exceeds Rs. 25 lakh.
Form 8 | Statement of Account & Solvency
| Within 30 days from the end of six month of the Financial Year (October 30th)
|
Form 11 | Annual Return
| Within 60 days from the closure of the Financial Year (30th May)
|
Non Compliance | Provision | Penalty | |
Any limited liability partnership which fails to comply with the provisions of sub-section (3), such limited liability partnership and its designated partners shall be liable to a penalty of one hundred rupees for each day during which such failure continues, subject to a maximum of one lakh rupees for the limited liability partnership and fifty thousand rupees for every designated partner.
Every limited liability partnership shall, within a period of six months from the end of each financial year, prepare a Statement of Account and Solvency for the said financial year as at the last day of the said financial year in such form as may be prescribed, and such statement shall be signed by the designated partners of the limited liability partnership.
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Form 8 | Section 34(5) | ||
Form 11 | Section 34(2) |
As per rule 24(3) of the Rules, a limited liability partnership (LLP) is required to maintain its books of account for a period of 8 years from the date on which they are created. This requirement ensures that all financial records, including statements of income and expenditure, asset and liability records, cost statements and any other financial documentation are preserved for auditing and compliance purposes
As per rule 24(10) of the Rules, an auditor or auditors must be appointed for each financial year of the LLP to audit its accounts. This ensures that the financial statements and records of the LLP are thoroughly examined and verified by qualified professionals, thereby enhancing the accuracy and reliability of the financial information presented.
