LLP compliance requirements in India:
The following are the compliance requirements that LLPs in India must fulfill:
Annual Compliance:
LLPs must file an annual return in Form 11 with the MCA within 60 days from the end of the financial year. Furthermore, LLPs are obligated to submit their Statement of Accounts and Solvency (SAS) in Form 8 within 30 days after the conclusion of six months of the financial year.
Income Tax Returns:
LLPs are obligated to file their income tax returns on or before the due date.LLPs that have a turnover of up to Rs. 40 lakh and a capital contribution of up to Rs. 25 lakh are exempt from tax audit under Section 44AB of the Income Tax Act.
GST Returns:
LLPs registered under the Goods and Services Tax (GST) regime must file monthly, quarterly, or annual returns based on their turnover.
TDS Returns:LLPs are responsible for deducting Tax Deducted at Source (TDS) from payments made to vendors or contractors. They also require to file quarterly TDS returns.
Maintenance of Books of Accounts:
LLPs must maintain books of accounts and other relevant documents as per the provisions of the LLP Act, 2008.
Statutory Audit:
LLPs with an annual turnover of Rs. 40 lakh or more or a contribution of Rs. 25 lakh or more must undergo a statutory audit conducted by a qualified Chartered Accountant.
ROC Filing:
LLPs need to file various forms with the Registrar of Companies (ROC) as per the provisions of the LLP Act, 2008. For example, they should file Form 8 and Form 11 annually, and Form 3 and Form 4 in case of any changes in the LLP agreement, partners, registered office, etc.
FAQs:
What is an LLP?
An LLP is a business structure that combines the benefits of a partnership and a corporation, offering limited liability protection to its partners.
What are the annual compliance requirements for an LLP?
LLPs must file annual returns and financial statements with the Registrar of Companies (RoC) in India.
When are annual returns due?
The annual return is due within 60 days from the end of the financial year, while the financial statements must be file within 30 days of the annual general meeting.
Is there a requirement for auditing an LLP?
LLPs are not required to have their accounts audited unless their turnover exceeds ₹40 lakhs or their capital contribution exceeds ₹25 lakhs.
What forms need to be filed?
LLPs must file Form 8 (Statement of Account & Solvency) and Form 11 (Annual Return) annually.
Are there penalties for non-compliance?
Yes, non-compliance can result in penalties for both the LLP and its designated partners, which can accumulate over time.
What is a designated partner?
A designate partner is responsible for the compliance of the LLP and must be an individual with a valid Director Identification Number (DIN).
How often do LLPs need to hold meetings?
While there is no statutory requirement to hold meetings in LLPs, it is advisable to maintain regular meetings for decision-making and record-keeping.
Are there any specific documents required for filing?
Yes, LLPs must maintain and file documents such as the LLP agreement, statement of accounts, and minutes of meetings, if applicable.
Can an LLP change its partners?
Yes, an LLP can change its partners by filing Form 4 with the RoC, which requires consent from all partners.
To Visit https://www.mca.gov.in/
LLP compliance requirements in India:
Compliance with these regulations is crucial for LLPs to avoid penalties or legal consequences.
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