0

Annual Filings for Limited Liability Partnership (LLP)

Limited Liability Partnership (LLP) is a separate legal entity and Separate from Its partners, LLP is governed by LLP Act, 2008, LLP Rules, and in accordance with LLP agreement, LLP act and rules provides for the Annual Returns that are required to be filed by LLP (LLP Annual Filing) to Registrar of Companies by every LLP. beside compliances of LLP Act and rules LLP is required to file its Income tax return and Tax Audit report if required, and designated partners of LLP is required to complete there annual DIN KYC every year, all this comes under LLP Annual Filing, below we have discussed main LLP annual filing that is required to be done by every LLP:

LLP Annual Filing

LLP Annual Filings Calendar

LLP Filing

  • LLP Form 11
  • LLP Form 8
  • DIR-3 KYC
  • Income Tax Return
  • GST Return
  • TDS Return

Due Date

  • 30th May
  • 30th October
  • 30th June
  • 30th July (Non-Audit)
  • Every month /Qtr ( For GST Registered)
  • Every Qtr ( if TDS deducted)

LLP Form 11 ROC LLP Filing

LLP Form 11 is required to be filed by every LLP, Even if LLP has not carried out any business activity LLP Form 11 is mandatorily required to be filed. LLP Form 11 is also known as LLP Annual Return and it contains information about the ownership structure of LLP like Capital Contributed by each designated partner or partner, who are the partners of LLP as on the financial year ending date for which Form 11 is required to be filed.

Mandatory Attachment of Form 11 – In Form 11 a document in respect of Designated partners and partners is required to be attached which contains details in which the designated partner of LLP is the Director or Partner.

LLP Form 8 ROC LLP Filing

LLP Form 8 is required to be filed by every LLP, LLP Form 8 is filed with respect to Statement of Accounts and solvency, In general, this form is required to be filed for filing LLP Annual Accounts to ROC. So before Filing this form LLP is required to be prepare and finalize its books of accounts, otherwise, it is not possible to file this form. LLP Audit is also done under this where Auditor is required to Digitally signed this form, in case LLP is required to get its accounts audited, Presently Limit for LLP Audit is Rs. 40 Lakh for turnover and Rs. 25 Lakh for Capital Contribution, if either exceeds this limit LLP is required to get its accounts audited.

DIR-3 KYC for Designated Partners of LLP (LLP Annual Filing)

DIR-3 KYC is mandatory for every designated partner of LLP, non-filing will lead to a fee of Rs. 5000 for activation of DIN of designated partner. The due date for filing DIR-3 KYC is 30th September.

Income Tax Return of LLP (LLP Annual Filing)

Every LLP whose accounts are not required to be audited is required to file its Income Tax return on or before 31st July. For Audited LLP the due date is 30th September.

GST Return of LLP (LLP Annual Filing)

If LLP has GST Registration, then LLP is required to file Applicable GST returns like GSTR3B, GSTR1, GSTR9, and other applicable returns on a monthly, quarterly or yearly basis as and when applicable.

TDS Return of LLP

If LLP has made payments that are required to pay after deduction of Tax at source, The TDS amount is required to be deposited before the 7th of next month and is required to file a Quarterly TDS return.

0

Reduced Late Fee for LLP’s

Today we will discuss the recent Amendment made by MCA regarding fees payable by LLP, there was long-standing demand for the reduced filing fees for LLPs, In the ease of doing initiatives of the government of India, the new Reduced Late Fee for LLP will come out to be a game-changer for Small LLP.

Reduced Late Fee ( New Rules)

  • Completely Removed Rs. 100 Per Day Late Filing Fee and Introduced Rs. 10 ( for Small LLP’s ) Rs. 20 ( others) per day after a delay of 300 Days.
  • Per day Late only for Form 8 and Form 11
  • 2, 4, 6, 10, 15, 25 Time’s of Normal Filing Fee Applicable based of Number of Days Dealy for Small LLP’s
  • Small LLP Concept Introduced
  • Up to 50 times of Normal Fee applicable to other than Small LLP’s based on Number of Days dealy

Higer Late Fee ( Old Rules)

  • Rs. 100 Per Day applicable to all types of LLP’s
  • No Upper Limit ( Dealy of 100 Days costs Rs. 100*100= 10000/- )
  • All LLP forms are included in Rs. 100-day system.

A delay of 100 days for Small LLP having a Capital of Rs.1 Lakh will cost Rs. 50*10 = 500 Plus Rs. 50 = Total Rs. 550, resulting in savings of Rs. 9450

The new amended rules will be applicable from the 01st day of April 2022.

1

LLP Form 8 Filing Date Extended to 30th December 2021

MCA Relaxes Levy of Additional Fee in case of delay in Filing of LLP Form 8 (the Statement Account and Solvency) by LLP for the financial year 2020-21.

MCA issued a Circular, in which MCA announced a relaxation on additional fees in filing Form 8 by LLP up to 30th December 2021. Due to the difficulty faced by LLPs as a result of the COVID-19 epidemic, MCA has received a request for an extension of the deadline for completing the Statement of Account and Solvency without paying additional expenses.

LLP Form 8

The MCA has decided to allow LLPs to file Form 8 (the Statement of Account and Solvency) for the Financial Year 2020-2021 without paying additional fees until December 30, 2021, as part of the government’s ongoing efforts to promote ease of living and compliance for Micro, Medium and Small Enterprises doing business through the vehicle of LLP

0

LLP Filing Due Dates for Financial Year 2021-22

In this article we will cover LLP Filing due dates for Financial Year 2021-22, Every LLP Incorporated in India is required to file mandatory returns as per LLP Act , Income Tax Returns, and GST Returns , if applicable

Here we are covering the all the Filings that an LLP is required to file and there due dates :

LLP Filing

LLP Annual Return in Form 11

Every LLP is required to file its annual Return to Registrar of Companies (MCA) within 60 days from the end of Financial Year of LLP in Form 11.

Due date for LLP Filing Form 11 : 30th May

Information required to be filed in Form 11:

  • LLPIN of LLP
  • Name of LLP
  • Address of LLP
  • Total Capital Contribution of LLP
  • Business of LLP
  • Capital Contribution by each designated partner /Partner of LLP
  • Turnover of LLP – If exceed 5 cr it LLP annual return is required to be certified and signed by Company Secretary in Practice
  • Name of Companies and LLP’s in which Partner /Designated partner are Directors or Partners

DIR-3 KYC of Designated Partners

Every Designated partner is required to file KYC form with MCA every year. This is mandatory requirement other the DIN of Designated partner got deactivated and Payment of Rs. 5000 is required to be paid to get activated after 30th Sept due date.

LLP Accounts and Solvency in form 8

Every LLP is required to file Form 8 to MCA within 30 days from the end of 6 months from the end of Financial year , Form 8 of LLP contains information regarding Annual Financial Statements of LLP , wherein LLP is required to file full amounts of Balance Sheet and profit and Loss Account.

Audit Requirement in LLP : LLP is required to get its accounts Audited if its contribution exceed Rs. 25 Lakhs or Turnover Exceeds 40 Lakhs from Chartered Accountant.

Income Tax Return of LLP

Income Tax Filing is mandatory for LLP in India, the taxability of LLP is same as partnership firm except few changes, Every llp is required to file its income Tax return by 31st of July and if accounts of LLP are required to get audited the last date for filing llp income Tax return will be 30th September.

TDS Return for Tax Deducted (Quarterly) of LLP

Every LLP is required to file TDS return every quarter, if there exists any Tax Deductions for payments of Salary in 24Q form , and payments for Services in Form 26Q, TDS returns are filed every Quarter

GST Return (Monthly/Quarterly) of LLP

If LLP has GST Registration than LLP is required to file monthly /Quarterly GSTR1 and GSTR3B Returns. If LLP is not having GST Registration than this return is not required to be filed.

0

LLP may soon have Reduced Additional Fee , MCA initiates process of De-criminalisation of compoundable offences under Limited Liability Act, 2008

With the object of unleashing the entrepreneurial spirits of our youth and to remove the fear of criminal prosecutions for non- substantive minor and procedural omissions and commissions in the normal course of their business transactions, the Government of India in the Ministry of Corporate Affairs (MCA) decided to initiate the process of decriminalization of compoundable offences under the limited liability partnership (LLP) Act, 2008, for greater ease of doing business for law abiding LLPs.

The Government treats Honest and Ethical Corporate entrepreneurs as wealth creators and nation builders. The objective of the De-criminalization exercise is to remove criminality of offences from business laws where no malafide intentions are involved. In furtherance of the said objective, an exercise was undertaken to identify those provisions of the Limited Liability Partnership Act, violations of which do not result in injury to public interest but are presently criminal in nature with fine as well as punishment after conviction being provided for in the Act.

Principles adopted for Decriminalization of Compoundable Offences:

  1. Principle 1Offences that relate to minor/ less serious compliance issues, involving predominantly objective determinations, are proposed to be shifted to the In-house Adjudication Mechanism (IAM) framework instead of being treated as criminal offences.
  1. Principle 2: Offences that are more appropriate to be dealt with under other laws, are proposed to be omitted from the LLP Act, 2008.
  1. Principle 3For non-Compoundable offences that are very serious violations entailing an element of fraud, intent to deceive and caused injury to public interest or non- compliance of order of statutory authorities impinging on effective regulation, Status Quo would be maintained.

In all, twelve (12) offences are proposed to be decriminalized and one (1) provision (Section 73) entailing criminal liability is proposed to be omitted. The 12 de-criminalized offences would then get shifted to IAM thereby de-clogging the criminal courts from routine cases.

In addition to the De-criminalization of the Act the Government also proposes Introduction of certain new concepts into the Act for greater Ease of Doing Business:

  1. Small LLP: It is proposed to create a class of LLP called as “Small LLP” in line with the concept of Small Companies. Such Small LLPs would be subject to lesser compliances, lesser fee or additional fee and lesser penalties in the event of default. Thus, lower cost of compliance would incentivize unincorporated micro and small partnerships to convert into the organized structure of an LLP and derive its benefits.
  1. Non-convertible Debentures (NCDs):  It is proposed to allow LLPs to raise capital through issue of fully secured Non-Convertible Debentures (NCDs) (as an alternative to equity participation) from investors who are regulated by SEBI or RBI. This will help deepen the Debt Market and enhance the capitalization of LLPs.

Reduction of Additional Fee: It is also proposed to amend Section 69 of the Act with a view to reduce the additional fee of Rs. 100 per day which is presently applicable for the delayed filing of forms, documents. A reduced additional fee is expected to incentivize smooth filing of records and returns of LLPs and consequently result in an updated registry for proper regulation and policy making.

Source: PIB

0

How to Add Designated Partner in LLP

For adding a Partner in LLP following procedure is to be followed as per the Provisions of LLP Act,2008:

Designated Partner in LLP

Designated Partner in LLP

  1. Eligibility Criteria for becoming a Designated Partner in LLP:

    • Only Individual can be appointed as Designated Partner in LLP.
    • The Person wish to appointed as a Designated Partner in LLP must have a Valid Director Identification Number.
    • Director Identification Number may be obtained by Filling FORM DIR-3 available on www.mca.gov.in after completing the form and attaching supporting documents, this form require pre-certification from Practicing Professional i.e. Company Secretary,Chartered Accountant or Cost Accountant. For obtaining Director Identification Number or Professional Certification.
    • After obtaining Director Identification number an individual is eligible for appointment as a Designated Partner.
  2. Procedure to be followed after obtaining Director Identification Number:

    • After obtaining Director Identification number, the proposed Designated Partner is required to intimate his DIN to the LLP.
    • The LLP is than will call a Meeting of Existing Partner for considering the appointment of Proposed Designated Partner. For getting draft of resolution passed in the Meeting and Preparing Minutes of the Meeting .
    • After approval of Existing Partners in duly conveyed Meeting for appointment of Proposed Designated Partner, A supplementary LLP Agreement is required to be made for draft of Supplimentry LLP Agreement .
    • A consent from Proposed Designated Partner is also required to be obtained in prescribed form.
  3. Intimation to Registrar of Companies about Appointment of New Designated Partner:

    • After Appointment of Designated Partner LLP is required to inform concerned Registrar of Companies i.e. in whose jurisdiction Registered office of LLP is situated, In E-FORM LLP-4 available on Www.mca.gov.in, within 30 days of appointment. you may visit Fastlegal for preparation of Forms and Pre Certification by Professional by CS, CA OR CMA
    • LLP is also required to file Supplementary LLP agreement in LLP FORM-3 within 30 days of such Appointment.

Note: Please ensure to file necessary forms within Prescribed time as late fee is Rs.100/- per day for each day of delay which has no upper limit.

0

LLP Settlement Scheme 2020, How to File Pending (Due) Returns

LLP Settlement Scheme 2020

The Ministry of Corporate Affairs has launched a one time settlement scheme for LLP’s ” LLP Settlement Scheme 2020″   , This scheme allows one time settlement period for LLP such defaulting LLP’s that are not able to file Form3, Form4, Form8 and Form 11 within due date. 

Non filing of LLP forms incur Additional fee of Rs. 100 per day with no maximum cap, with this there were lot’s of LLP’s missed the returns and now incurred huge additional fee. 

Under the LLP settlement scheme 2020 these LLP can benefit by filing Form 3, Form 4, Form 8 and Form 11 from 16th of March 2020 to 13th of June 2020 with additional fee of Rs. 10 per day subject to maximum Rs. 5000 per form.  

 

  • *MCA has made modifications to the Scheme and now Returns can be filed up to 30th Sept 2020 without any additional Fee

The LLP settlement Scheme is applicable to all defaulting LLP’s, for which documents and return which were due for filing till 31st October, 2019. 

  • The Amendment to Settlement Scheme Extended the Due Date to 31st August 2020, so any default till 31st August 2020 can be filed with normal filing fee.

Which forms can be filed through LLP settlement Scheme 2020:

Under this scheme LLP can file its overdue returns since incorporation, Following forms can be filed under the scheme

(i.) Form-3- Information with regard to limited liability partnership agreement and changes, if any, made therein;

(ii.) Form-4- Notice of appointment, cessation, change in name/ address/ designation of a designated partner or partner and consent to become a partner/ designated partner; 

(iii.) Form-8 -Statement of Account & Solvency (Annual or Interim); 

(iv.) Form-11- Annual Return of Limited Liability Partnership (LLP). 

Fee to be Paid for Filing Due/Pending Returns

Under the LLP settlement scheme 2020 these LLP can benefit by filing Form 3, Form 4, Form 8 and Form 11 from 01st April 2020 to 30th September 2020 without any additional fee.

Fastlegal provides LLP return Filing services, if you have any requirements , Please contact us at [email protected] or call us at 9782280098

 

0

Everything you need to understand about Limited Liability Partnership (LLP)

  • LLP Act, 2008 and same is applicable to whole of India.
  • Nature of LLP– Body Corporate, Legal Entity, separate from its partners, perpetual  succession, change in partners does not affect existence, rights & liabilities. 
  • Partnership act will not apply to LLP
  • Address of Partner- Individual – Residential Address, Body Corporate – Registered Address
  • Body Corporate – Company, LLP registered under this act, LLP incorporated outside India, Company incorporated outside India
  • Business includes every trade, profession, service, occupation.
  • Contribution – Tangible, Intangible, Movable, immovable, other benefits, money, promissory notes, Agreement to contribute cash or property, contracts for services performed or to be performed.  obligation to perform (Form of contribution ) shall be according to LLP Agreement.
  • Creditors of LLP – Acts in reliance of an obligation described in LLP agreement, without notice of any compromise between partners may enforce original obligation against such partners.
  • Monetary vale of contribution of each partner shall be account and disclosed in the accounts of the LLP in prescribed manner
  • Entity
  • Financial Year 1 April to 31st March ( If incorporated after 30th Sept may end on 31st march of next year.)
  • Foreign LLP– Formed and incorporated outside India which establishes place of business in India. 
  • LLP Agreement – Written Agreement between – Partners of LLPLLP and Its Partners, which determines the mutual rights and duties of partners, rights and duties in relation to LLP
  • Name – Partner – Individual- First, middle, last. Body Corporate- Registered name.  
  • Partners- Minimum 2, Maximum – no limit prescribed in Act.
  • There is no disqualification that body corporate can not become partner but there is disqualification for individual. 
  • How can become a partner of LLP– Individual and Body Corporate in accordance with the LLP agreement. They have to make Contribution.
  • Designated Partner- If incorporation document specifies who are designated partners they shall be,  Each of partner than all.   Minimum 2 Partners required, responsible for the compliance of all the acts applicable to LLP. LKiable for all the penalties imposed under this act.  Can become DP in accordance with the LLP agreement, Prior approval to act as DP is must before, Should have DPIN (DIN), Conditions- Insolvent – 5 years, Suspended payment to creditors, done offence convicted by court, done offence of fraud. LLP shall file particulars of every individual who has given consent to act as DP in prescribed form to ROC.
  • Change in designated partner- Designate new partner within 30 days of vacancy, if no partner is appointed all the partners will be designated partners ( this applicable if reduced below two) 
  • Cessation from partnership by partner- 30 days notice to be given to other partner of his intention to resign.   Notice of Resignation – to the person who is dealing with LLP or ROC otherwise he will be liable.
  • Partner of LLP is a agent of LLP but not of other partners
  • If the partner do not have authority to do some act, LLP is not bound for the act of partner.
  • LLP liable- If the partner is liable to any person for wrong act or omission on his part in the course of business of LLP.
  • Liabilities of LLP shall be met out of property of LLP.
  • Solely by reason of being partner, partner is not personally liable.
  • Partner is not liable for personal act, omission of any other partner.
  • Not Partner in real but holding out so- Liable to the extent of credit received by him.
  • Unlimited liability in case of fraud.   
  • Whistle Blowing- Court or tribunal can waive the penalty, if satisfied – partners provided useful information during investigation.
  • Financial Disclosures- Accounts to be kept as par double entry system, Prepare statement of Accounts and solvency for the financial year and shall be signed by the Designated Partners of the LLP within 6 months form the end of the financial year and File with ROC,
  • Audit
  • Annual Return – To be filed to ROC within 60 days of closure of Financial year.
  • Compounding of offences- Only offences punishable with fine. By collecting a sum which may extent to the amount of maximum fine prescribed for the offence.
  • Assignment and transfer of Partnership Right – Right of a partner to share of the profit or loss of the LLP, and to receive distribution in accordance with LLP agreement are transferable either wholly or partly.
  • Transfer of right does not by itself cause disassociation of partner.
  • Transfer of right pursuant to this section does not itself, entitle the transfer or assign to participate in the management.  
  • Conversion of LLP – Firm to LLP– IInd Sechedule, Pvt Company To LLP– IIIrd Sechedule , Unlisted Public Company to LLP– IVth Sechedule. 
  • Partner may land money to LLP
0

Annual Filing of Limited Liability Partnership (LLP) for 2019 Year


Every LLP (Limited Liability Partnership) is required to file its Annual Accounts (Statement of Accounts and Solvency ) , Annual Return and Income tax Return every year within the stipulated time, even LLP having nil turnover or LLP has not carried out any business operation during the reporting period.

Annual Filing requirements with Registrar of Companies for Financial Year 2019 :

Filing of Annual Return in Form 11 for Financial Year 2018-19:

Every LLP is required to File its Annual Return to ROC by 30th May of Every Year, failure to file Annual Return will attract Additional Fee of Rs. 100 per day with no upper limit. ( Delay of 30 days will cost you Rs. 100*30= 3000)

Filing of Annual Accounts and Solvency in Form 8 for FY 2018-19:

Every LLP is required to file its Annual Accounts with ROC by 30th Oct of every year, failure to file Annual Accounts will attract Additional Fee of Rs. 100 per day with no upper limit. ( Delay of 50 days will cost you Rs. 100*50= 5000) this is in addition to Additional fee to be paid for Form 11 , if not filed.

READ  How to Register LLP with New LLP Incorporation Procedure

LLP Income Tax Filing Requirement for FY 2018-19 :

The due date for filing income tax return in case of a LLP for A Y 2019-20 is 31st July, 2019 . It is applicable for income earned from April 1st, 2018 to March 31st, 2019. For LLP due date is September 30th (where audit is required), November 30th(where there are foreign transaction or specified domestic transactions). 

Note : In case of LLP is registered on or after 01st of Oct than LLP may end Financial Year in next March. Like if LLP is registered on  05th of Oct, 2018 than First Financial Year of LLP may end on 31st March, 2020. This Limit is only for ROC Filing Purpose and LLP is required to file Income Tax Return Mandatory if Incorporated before 31st March of the Year. 

Fastlegal provides LLP Annual Filing Services all over India Online , to avail Fastlegal Services Please Call/Whatsapp at +919782280098, Email at [email protected] 

0

FDI in Limited Liability Partnership (LLP) in India

FDI in LLPs is permitted subject to the following conditions:

(i) FDI is permitted under the automatic route in Limited Liability Partnership (LLPs) operating in sectors/activities where 100% FDI is allowed through the automatic route and there are no FDI-linked performance conditions.

(ii) An Indian company or an LLP, having foreign investment, is also permitted to make downstream investment in another company or LLP in sectors in which 100% FDI is allowed under the automatic route and there are no FDI-linked performance conditions.

(iii) Conversion of an LLP having foreign investment and operating in sectors/activities where 100% FDI is allowed through the automatic route and there are no FDI linked performance conditions, into a company is permitted under automatic route.

Similarly, conversion of a company having foreign investment and operating in sectors/activities where 100% FDI is allowed through the automatic route and there are no FDI-linked performance conditions, into an LLP is permitted under automatic route.

(iv) FDI in LLP is subject to the compliance of the conditions of LLP Act, 2008.

Reference: https://dipp.gov.in/sites/default/files/CFPC_2017_FINAL_RELEASED_28.8.17.pdf