An LLP is a separate entity. It has been licensed by the Ministry of Corporate Affairs (MCA). Adequate books of accounts and the submission of an annual return are essential to assuring compliance. An LLP can use e-filing to stay in compliance.
Note – Limited Liability Partnerships must audit their books of accounts if their yearly turnover exceeds 40 lakhs or the partner’s contribution to the LLP exceeds 25 lakh. In other circumstances, annual auditing of financial statements is not required.
Remember These Important Points
- Form 8 must be submitted by October 30th. Failure to file results in an Rs.100 fine every day of delay.
- If the LLP’s revenue exceeds Rs 40 lakh or a partner’s contribution exceeds Rs 25 lakh, the auditor must approve Form 8 of the LLP.
- If the LLP fails to file Form 11 within the time range specified by law, a fee of Rs 100/day would be applied.
- Form 11 reflects the partner’s information as well as any donations made.
- If the turnover is less than 5 crores and the contribution level is less than Rs 50 lakh, the digital signatures of the authorized partners will suffice. On the other hand, if the turnover value and contribution are above the threshold limit, the LLPs partner must have form 11 certified by a Company Secretary.
Aside from that, the LLP shall make the following declarations:-
- The turnover, whether it is less than or more than the threshold limit.
- Previously filed statement providing information on satisfaction/modification until the current fiscal year.
- Accounts must be prepared by a certain number of partners/authorized representatives.
Which Annual Filings Must an LLP Complete?
- Statements of Account and Solvency must be submitted within thirty (30) days of the end of the six (6) months of the fiscal year, and annual returns must be submitted within 60 days of the financial year’s end.
- Note: The Statement of Accounts and Solvency must be filed on or before October 30th of each fiscal year, and the annual return for LLPs is due on May 30th of each year, even if the LLP did not conduct any business during that fiscal year.
How to e-File for a Limited Liability Partnership?
- The applicant for LLP e-filing can download the e-form from the MCA portal, fill it out offline, and submit it for further processing. There is also the option of filling it out online utilizing the MCA’s facility to pre-fill the data in the LLP system (only available for those with an active internet connection).
- After the applicant has completed the e-form, the following step is to validate the e-form by clicking the pre-scrutiny button. The applicant must also attach the needed digital signatures and save the form.
- Note that, unlike corporations, Limited Liability Partnerships must follow the fiscal year, which runs from April 1st to March 31st.
Upload the e-Form
After the applicant has completed the e-form according to the instructions and all of the information has been validated, the following step is to upload the pre-form. After successfully submitting the e-form, the applicant will be given a service request number and will be required to pay the statutory fees.
The following is a step-by-step tutorial to e-filing for an LLP.
Step 1 – Choose A Category
To begin, the applicant must select a category in order to download an eForm from the LLP portal. There is an option to download the file with or without the instruction kit. An instruction kit is always useful for clarifying doubts at any step of filling out the e-form.
Step 2 – Completing The Form
After downloading the form, the applicant must proceed to fill out the requested information. The applicant can use the prefill button if he is linked to an active internet connection. Otherwise, you must complete the downloaded e-form.
Step 3 – Insert Documents
The applicant must next upload as attachments all essential and supporting papers. To successfully file the e-form, the applicant or a representative of the applicant must sign the document with a digital signature. If the attachments are in hard copy, they must be scanned and saved as a soft copy in PDF format by the applicant. They must then attach it to the e-attachment form’s section by clicking the ‘Attach’ button.
Step 4 – Examine The Form
After the papers and signatures have been attached, the next step is to click the ‘Check Form’ button on the e-form. The system will look for required fields, mandatory attachment(s), and a digital signature (s).
Step 5 – Pre-Scrutiny
Following that, the completed form must be uploaded for pre-scrutiny. Under the Services menu, you can access the pre-scrutiny service. Alternatively, under the eForms tab, select the Upload e-Form button.
The system will verify (pre-scrutinize) the documents. If there are any deficiencies, the user will be requested to correct the errors before the document is ready for execution (signature).
Step 6 – Pay The Charge
The system will determine the charge near the end of the file. It will also compute late payment penalties if any exist. The applicant must pay the payment via credit card, internet banking, NEFT, Pay Later, or challan at the bank counter.
The procedure of filing an LLP’s yearly returns, on the other hand, requires a huge number of processes and difficulties. This is why we suggested enlisting the help of professionals with relevant experience. Fortunately, we at FINAXIS can help you expedite and simplify the entire procedure.
https://finaxis.in/services/ – Contact us right away!
Hello, I am Jyoti Bhardwaj, an lawyer pursuing LLB, having completed Bachelor of Commerce (B.Com) and Post Graduate Diploma in Computer Applications (PGDCA). I am a professional working with Finaxis Business Consultancy Pvt. Ltd. who believes that reading is a bliss and sharing knowledge is the virtuous way of acquiring knowledge. Thus, an avid reader who loves blogging and writing pretty much sums up who I am.