Annual compliance for a Limited Liability Partnership (LLP) in India is essential to maintain the LLP's legal standing and avoid penalties. Here’s a comprehensive guide on the annual compliance package for 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: There is a fee of ₹100 per day per form for late filing of Form 8 and Form 11.

• Income Tax Penalties: For late filing of income tax returns, penalties can be up to ₹5,000, along with interest on unpaid tax.

• Deactivation of LLP: Continuous non-compliance may lead to the LLP being declared defunct, and the partners may face disqualification.

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

Preparation and Filing of Form 8 (Statement of Accounts & Solvency)

• Compilation of financial statements

• Declaration on solvency

• Filing with the ROC

Preparation and Filing of Form 11 (Annual Return)

• Compilation of details regarding partners and contribution

• Filing with the ROC

Income Tax Return Filing (ITR-5)

• Preparation of income tax return

• Tax computation and filing

• Tax audit report preparation (if applicable)

ROC Compliance

• Updating and maintaining statutory registers

• Preparation of minutes and resolutions

• Compliance audit and health check-up of LLP

Consultation and Advisory

• Regular updates on compliance requirements

• Advisory on tax 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: Bundling services reduces overall compliance costs.

• Expertise: The compliance professionals guarantee that the compliance is accurate and timely to avert the penalties. 

• Peace of Mind: Regular reminders and updates ensure that no compliance requirement is overlooked.

• Audit Requirement: Ensure to check whether your LLP exceeds the thresholds for audit.

• Filing Deadlines: Mark the important dates (May 30th, July 31st, September 30th, and October 30th) to avoid late fees.

• Professional Help: Engaging a professional for annual compliance ensures that all statutory requirements are met without errors.

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 paperwork so you can concentrate on expanding 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!