What is Limited Liability Partnership(LLP) in India(LLP)
Venturing into a Company of your own could also lead to unimaginable and risky consequences, so there is a need to see things from a different perspective. The LLP is a type of a legal entity which was introduced in India as a part of Limited Liability Partnership(LLP) Act 2008. This kind of firm is one in which all the partners have limited liability. It also provides an opportunity for those who want to benefit themselves by having the advantages of both ‘Company’ and ‘Partnership’, both in one firm.
Every registered Limited Liability Partnership(LLP) has to file an Annual Return and Statement of accounts whosoever is registered with the Ministry of Corporate Affairs. This LLP annual filing is necessary for all these LLPs every Financial year regardless of whether or not they have done some business or not. There are three compliance requirements which have to be followed by the LLPs. These are namely:
- Filing of the Annual Return- This Annual Return or FORM 11 holds all the summary of the partners of the LLP. This form also notifies us about any change in the management of the LLP. This has to be filed within 60 days of the closure of the financial year, i.e. 2 months prior, along with the fees (as prescribed).
- Filing of Financial Statements- This filing of the financial statements of the LLP is required to be filled by the means of FORM 8. Every year this FORM 8 has to be filed with the ROC along with the prescribed fees before the 30th of October every year.
- Filing of the Income Tax Returns- Each and every LLP which is registered in India has to file an Income Tax return every year. Even if the LLP has not undertaken activity or is dormant, then also this income tax of the revenue or profits has to be filed.
An Important thing to be kept in mind is that an LLP whose turnover has exceeded Rs. 40 lacs or whose contribution has exceeded Rs. 25 lacs, have to get their account audited by a practising CA or Chartered Accountant.
In cases of Non-Compliance
At times if you fail to fill the form at the deadline, then, the LLP is liable to pay a fee of Rs. 100 per day for each form. i.e. separately for FORM 8 and FORM 11.