Compliance for LLP is obligatory every year to ensure that an LLP continues its functioning in India and also to avoid fines. Given below is a detailed guide to the annual compliance package of LLP.

Statement of Accounts & Solvency (Form 8)

• Purpose: This form is used in filing the annual financial returns of the LLP in which the Statement of Assets and Liabilities and the Statement of Income and Expenditure are included.

• Deadline: Within 30 days from the end of six months of the financial year, typically by October 30th each year.

• Details Required:

• Statement of assets and liabilities

• Statement of income and expenditure

• Declaration on solvency by the partners

• Filing Fees: ₹50 - ₹2,000, depending on the contribution.

Annual Return of LLP (Form 11)

• Purpose: Annual return which contains information concerning the partners, changes in the management amongst other facts of the LLP.

• Deadline: Within 60 days from the end of the financial year, typically by May 30th each year.

• Details Required:

• Number of partners

• Contribution received from each partner

• Details of changes in partners, if any

• Filing Fees: ₹50 - ₹1,000, depending on the contribution.

Income Tax Return Filing

• Form: ITR-5

• Deadline:

• July 31st for LLPs not requiring audit.

• September 30th for LLPs requiring audit.

• Details Required:

• Audited financial statements

• Detailed income and expenditure information

• Tax Audit: Required if turnover exceeds ₹1 crore in a financial year.

Audit of Accounts (if applicable)

• Applicability: The auditor’s report must be mandatory if the turnover of the company during the preceding year has been more than ₹40 lakh or the contribution of the company during the preceding year has been more than ₹25 lakh. 

• Auditor’s Report: Required to be filed with the Registrar of Companies (ROC).

Other Compliances

• Maintenance of Statutory Registers: Maintaining records of all partners, contributions, and agreements.

• Minutes of Meetings: Record minutes of partner meetings, particularly those involving financial decisions.

• Late Filing Fees: Any extension of filing of Form 8 and Form 11 attracts a fee of ₹100 per day per form.

• Income Tax Penalties: Interest for late filing of income tax returns is up to ₹5,000 together with the interest on the amount of tax.

• Deactivation of LLP: Any repeated failure to comply with the LLP laws will lead to the clsring of the LLP and the partners may be barred.

At Insta Bizfilings, we provide an annual compliance package for LLPs which includes the following:

Annual Return and Form 8 (Statement of Accounts & Solvency)

• Preparation of the balance sheet

• Declaration on solvency

• Filing with the ROC

Filing of Form 11 of the Act Popularly known as the Annual Return

• Gathering of information related to partners and contribution

• Filing with the ROC

Income Tax Return Filing (ITR-5)

• There is general consensus that preparation of income tax return is a vital task to accomplish.

• Tax computation and filing

• Preparation of tax audit report in case of audit has been conducted.

ROC Compliance

• Dealing with amendments and changes to statutory registers

• Taking and writing of minutes and resolutions

• LLP compliance audit and health check up

Consultation and Advisory

• On compliance issues, there should be update frequently.

• Tax consultancy in the area of planning and compliance

• Basic Compliance Package: ₹10,000 - ₹20,000 per annum (includes Form 8, Form 11, DIR-3 KYC for Partners, and ITR filing for small LLPs).

• Advanced Compliance Package: ₹2,000 - ₹3,000 per annum (includes audit, tax planning, and additional advisory services).

• Penalties for Late Compliance: ₹100 per day for ROC forms, potential penalties for late tax filing.

• Cost-Effective: One way through which bundling of services has been found to achieve the objectives is through cutting overall compliance cost.

• Expertise: Another assurance given by the compliance professionals is that the compliance is precise and on time to avoid such penalties.

• Peace of Mind: Best practices involve the use of checklists and frequent notifications and messages in order to ensure that no compliance need is forgotten.

• Audit Requirement: Make sure you check whether your LLP goes beyond the regulations of threshold of audit.

• Filing Deadlines: Make sure to remember its important dates for fees payment which are May 30, July 31, September 30 and October 30 to prevent charges.

• Professional Help: Hiring a professional for once a year compliance is helpful because it certifies someone knowledgeable makes sure that every regulation is fulfilled adequately.

Our goal at InstabizFilings is to make business solutions more affordable and easily accessible to everyone in India. We have a seasoned group of experts on hand to help you at every stage of your business venture. Having worked with companies of all sizes, from startups to multinational enterprises, for more than 40 years of collective experience, we are experts at streamlining the compliance process and making it less burdensome for business owners.
 
While we will assure timely filings and offer knowledgeable counsel to help you avoid penalties and remain on top of regulations, our goal is to remove the pain out of expense report so that you can spend more time on the growth of your business. You may benefit from a simplified, stress-free compliance experience with InstabizFilings, which will help you keep your business running smoothly.

Are you set to simplify your annual filings? Get started with InstabizFilings today!