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Limited Liability Partnership (LLP) is considered to be preferred legal entities with less compliance, cost effectiveness and flexible management structure. Annual Compliance of LLP / Startup in Bengaluru

Annual Compliance of LLP / Startup in Bengaluru

LLP have to ensure following annual compliances:

Filing of LLP Annual Return in Bengaluru in Form 11

All LLP / Startup in Bengaluru has to file Annual Return in Form 11 to the Registrar within 60 days after end of the financial year. Hence, LLP has to file form 11 by 30^th May every year.

Statement of Account & Solvency of LLP in Form 8

• LLP / Startup in Bengaluru has to file statement of account & solvency for the period ended 31^st March;
• Startup in Bengaluru has to file LLP – 8 by the 30^th October every year
• LLP has to get the accounts audited if the turnover exceeds Rs 40 Lakhs or Partner’s capital contribution exceeds Rs 25 Lakhs

Income Tax Return in ITR – 5

Both domestic and foreign LLP has to file Income Tax Return in ITR – 5. The filing of income tax return has to be mandatorily file irrespective of turnover.

Further, account is required to be audited under section 44AB depending on turnover limit prescribed.

Penalties for non compliances of LLP

• LLP are required to take care of punishment of Rs 100/- every day for not filing documenting Form 11 and Form 8 each financial year.
• Designated Partner takes care of the punishment of Rs 10,000/- to Rs 1 Lakh for not filling both LLP eforms.

Benefits of Limited Liability Partnership

• Burden of statutory annual compliances for LLP is less compared to limited company
• Cost of compliance is economical as compared to limited company
• There is ample flexibility of amount required to be infused as Partner contribution
• There is no statutory audit except on fulfilling prescribed limit
• This is beneficial to startup for easy of compliances norms

LLP FAQs

Does LLP to file return during the first year of incorporation?

If LLP has been incorporated on or after first October of financial year, then first financial year of LLP can be of 18 months. In this case it’s discretionary on LLP designated partner that FY can be closed to current years March month or end of next year march month.

What is the process of inspection of documents that are filled with ROC?

After login and payment of prescribed fees to MCA, the following documents can be inspected:

• Certificate of Incorporation,
  • Details of designed partner
  • Statement of Account and Solvency
  • LLP annual return and financial statement

Transaction status of SRN is ‘Sent for Resubmission’. What should I do?

You are required to re-submit your E-Form to rectify the incompleteness pointed out by the concerned MCA office. If you fail to re-submit your Form, you will be required to file with fresh payment of fee as applicable.

Can an existing partnership firm be converted to LLP?

Yes, an existing partnership firm can be converted into LLP by complying with the Provisions of clause 58 and Schedule II of the LLP Act. Form 17 needs to be filed along with Form 2 for such conversion and incorporation of LLP.

Can an existing company be converted to LLP?

Yes, any existing private company or existing unlisted public company can be converted into LLP by complying with the Provisions of clause 58 and Schedule III and IV of the LLP Act. Form 18 needs to be filed with the registrar along with Form 2 for such conversion.

What is “Statement of Accounts and Solvency” and whether it has a prescribed format?

Every LLP is required to file ‘Statement of Accounts & Solvency’ in prescribed LLP Form 8 which contains a declaration on the state of solvency of the LLP by the designated partners and also information related to statement of assets and liabilities and statement of income and expenditure of the LLP. This form has to be filed by the LLP on an annual basis.

Can a listed company be converted to LLP?

No, only private / unlisted public company can be converted into LLP.

What are the documents required to be filed by a LLP annually?

LLP is required to file LLP Form 8 (Statement of Account & Solvency) and LLP Form 11 (Annual Return) annually. The ‘Annual Return’ is required to be filed within 60 days of close of the financial year and ‘Statement of Accounts & Solvency’ shall be filed within 30 days from the end of six months of the financial year to which it relates. Every LLP has to maintain uniform financial year ending on 31st March of a year.