LLP Compliance: How to file Annual Return?
What is LLP annual return filings?
In India, LLPs must file its Statement of Account & Solvency within 30 days from the end of 6 months from the date of closing of the financial year.
LLPs must maintain their financial year, as of April 1st to March 31st. Therefore, their Statement of Account & Solvency is due on 30th October & annual return is due on 30th May of each financial year. If LLP registration was on or after 1st of October of an FY, in that situation it can close its first FY either on the coming or next 31st
LLPs are separate legal entities, unlike Companies; therefore, the designated partner is responsible to maintain proper book of accounts and file an annual return with the MCA each financial year and maintain compliance. LLP does not have to get their accounts audited unless it satisfies the condition that its annual turnover exceeds Rs.40 lakhs or if the contribution exceeds Rs.25 lakhs. This makes the annual filing process a simple and easy one.
LLP form 11 – annual return
LLP Form 11 is the Annual Return of LLP. It is sunc an LLP compliance wherein return must be e-filed every year with the Ministry of Corporate Affairs to comply with the provisions.
LLP Form 11 must be filed electronically and taken on record. It is important to ensure that all the information filled in the form is correct.
Filing of LLP Form 11 will not be allowed in case there is any E-Form 4 (Notice of appointment, cessation, and change in designation of a designated partner or partner) pending for payment of a fee or any eForm 4 is under processing with the MCA. Therefore, it is important to file any E Form 4 well ahead of the time of due date for the LLP Annual Return.
LLP form 11 due date
LLP Form 11 is due within 60 days of ending of the financial year. Since all LLPs have 31st March as the closure of the financial year, LLP Annual Return Form 11 is due on the 31st of May of each year.
Statement of accounts and solvency (accounts)
Every LLP has to maintain books of accounts as per double entry system of accounting and has to prepare a Statement of Accounts and Solvency (Accounts) every year ending on 31st March and shall file the same in Form 8 with the Registrar, within 30 days from the end of six months of the financial year.
In the case of LLPs with a turnover exceeding Rs. 40 Lacs in any financial year or with a contribution exceeding Rs. 25 Lacs, the accounts of LLP have to be audited by a chartered accountant.
For LLP, a financial year means the period from the 1st of April of a year to the 31st March of the following year. So, the filing of accounts has to be done on or before 30th October of every year.
LLP form 11 late filing penalty
Failing to file an LLP Form 11 Annual Return within the due date (30th May) attracts a penalty of 100/day. This penalty is levied until the LLP non-compliance continues. As there is no bar on the penalty, the amount would increase over time. Hence, it is significant to file the on time to avoid heavy penalties.
Statement of accounts and solvency due date
It is due within 30 days from the end of six months from the date of closing of the financial year. So, the same is due on or before October 30th of each financial year.
Information & document required to file annual return
The following information is required:
- LLP Identification Number
- Name of the LLP
- Registered office address of the LLP
- Business Classification of the LLP (Business, Profession, Service, Occupation, Others)
- Principal business activities of the LLP
- Details of Designated Partners and Partners of the LLP
- Total obligation of the contribution of partners of the LLP
- Total contribution received by all partners of the LLP
- Summary of Designated Partners and Partners
- Particulars of penalties imposed on the LLP, if any
- Particulars of compounding offences, if any
- Details of LLP and or company in which Partners/DPs are Director/Partner.
Once the LLP compliance of filing Annual Return is done, there is no chance of further resubmission. Further, the total contribution received by all partners mentioned in the LLP Form 11 Annual Return should be matched with LLP Form 8.
Process of LLP return filing
LLP Annual Filing
Need to file a mandatory annual return for LLP with MCA and maintain annual compliance.
Annual Return Preparation
Need to prepare Annual return based on the financials and performance during the previous financial year.
Annual Return Verification
Required to prepare Annual Return based on details submitted and send for verification and approval.
After approval file Annual Return with the Ministry of Corporate Affairs along with the necessary attachments.
Note: Form shall be certified by Company Secretary in Whole Time Practice that he has verified the contents and particulars including from Books & Records of LLP & Found it to be correct.
Note on LLP Annual Compliance
It is mandatory to file NIL return even if LLP has not commenced his business or not opened the current account. Non-filling consequences will arise penalty.
To do complete Annual Filling we have to comply with both the parts and within time to save
CS Shubham Katyal
CS Shubham Katyal is an Associate Member of The Institute of Companies Secretaries of India and a commerce graduate having good experience in secretarial and legal matters. He is a Speaker and Visiting Faculty Member at The Institute of Companies Secretaries of India and Former Committee member of Young Member Empowerment & Placement Committee NIRC-ICSI(2019-20). He has authored several articles on complex subjects which featured on various professional forums.