LLP Annual Compliances
Limited Liability Partnership (LLP) is a business structure that combines the flexibility of a partnership and the limited liability of a corporation. It was introduced in India in 2008 under the Limited Liability Partnership Act, 2008.
An LLP must have at least two designated partners, who are responsible for managing the affairs of the business. Unlike a traditional partnership, the liability of partners in an LLP is limited to the amount of their capital contribution, and they are not personally liable for the debts and obligations of the LLP.
Let us help you understand the annual compliance requirements and forms applicable for an LLP.
Compliances for LLPs
LLPs are required to comply with various regulations under the LLP Act and other laws. Let’s take a closer look at these compliances.
- Form-3: LLP Agreement
Partners of an LLP are required to execute an LLP Agreement and file a copy with the Registrar of Companies (ROC) within 30 days of incorporation of LLP. Additionally, if there are any changes to the LLP Agreement, a supplementary LLP Agreement must be filed within 30 days of the change.
- Form-8: Statement of Account and Solvency
Every year, LLPs are required to file a Statement of Account and Solvency with the ROC under Section 34(3) of the LLP Act. This statement must be filed within 30 days from the end of six months of the financial year, i.e., by 30th October.
- Form-11: Annual Return
LLPs must file an Annual Return within 60 days of the close of the financial year, i.e., by 30th May. The Annual Return contains details of the LLP’s partners, capital, and turnover.
- Audit of Accounts
LLPs must get their accounts audited if their annual turnover exceeds INR 40 lakhs or if their contribution exceeds INR 25 lakhs.
If the annual turnover is less than INR 40 lakhs or the contribution is less than INR 25 lakhs, an audit of accounts is not required.
- Income Tax Return
LLPs must file their Income Tax Returns every year under Section 139(1) of the Income Tax Act by 31st July.
If an LLP is under tax audit, it must file its Income Tax Return by 30th September. Tax audit applies if the LLP is carrying on any business (sales exceeding 1 crore) or any profession (gross receipts exceeding 50 lakhs).
- DIR 3 KYC
Each designated partner of an LLP is required to file Form DIR 3 KYC on or before 30th September of each financial year. This form is used to update the Director Identification Number (DIN) details of the designated partner.
- Form-4: Change in Partner Details
LLPs must file Form-4 within 30 days of any changes in the details of their partners. This includes changes in admission, resignation, cessation, death, or expulsion of partners.
- Form-5: Notice of Change in Name of LLP
LLPs must file Form-5 within 30 days of receiving MCA name approval and confirming the availability of the name with the ROC. This form is used to notify any changes in the name of the LLP.
- Form-6: Intimation of Partner Details
LLPs must file Form-6 within 30 days of any changes to the particulars of its partners. This includes changes in the name and address of the partner.
- Form-9: Consent by Designated Partners
Designated partners must file Form-9 pursuant to Section 7(3) of the LLP Act, which requires their consent for their appointment as a designated partner.
- Form-12: Change in Communication Address
LLPs must file Form-12 to intimate any changes in the communication address for service of documents.
- Form-15: Change in Registered Office
LLPs must file Form-15 within 30 days of any change in the registered office of the LLP..
Our CA firm operates in Gurgaon and Faridabad and specializes in assisting clients with all of their Limited Liability Partnership (LLP) compliance needs. As a CA firm in Gurgaon and Faridabad, we provide expert guidance and support to ensure that our clients are compliant with all relevant regulations and laws related to LLPs. We take pride in offering comprehensive services that encompass every aspect of LLP compliance, from registration and filing of annual returns to maintaining records and books of accounts. Our team of experienced professionals is dedicated to providing personalized attention to every client and ensuring that their needs are met in a timely and efficient manner. With our expertise and commitment to excellence, we are confident in our ability to provide the highest quality services to our clients.
