LLP is a Corporate Business with the feature of Limited Liability which is a hybrid form of Company and Partnership Firm. Nowadays, LLP is the new favorite form of business for many, as it allows its members the flexibility of organizing their internal structure as a partnership firm while at the same time it contains some unique features of a Company. In legal terms, LLP is a body corporate formed and incorporated under the Limited Liability Partnership Act, 2008 and is a legal entity separate from that of its partners, and has perpetual succession, and change in its partners does not affect its existence.

Foreign Limited Liability Partnerships: It means a Limited Liability Partnership formed, incorporated, or registered outside India which establishes a place of business within India.

The Limited Liability Partnership (Amendment) Act, 2021, introduces a new concept of Small Limited Liability Partnerships, to encourage the entrepreneurs, in line with the concept of a small company under The Companies Act 2013, any LLP with a contribution up to Rs. 25 lakh (this limit may be increased up to Rs. 5 crores) and a turnover up to Rs. 40 lakh (this limit may be increased up to Rs. 50 crores) will be classified as a small LLP. Such small LLP would be subject to lesser cost of compliances, lesser fees or penalties, etc. however it shall come into force on such date as the Central Government may, by notification in the Official Gazette specify.

LLP: HOW IT BECAME FAVORITE FORM OF BUSINESS FOR MANY?

Firstly, its prefix "Limited Liability attracts a person to form LLP rather than a Partnership Firm.
LLP is a separate legal entity from its partners, has perpetual succession as like the company, and can be formed with two partners only and there is no limit for the maximum number of partners in LLP.
There is no minimum capital requirement, no partner’s compulsory meeting requirement, in the LLP.
Funds can be raised only through partners, bank loans, as cannot issue shares or debentures.
Registration of an LLP is compulsory.

LLP ANNUAL COMPLIANCES:

Every LLP registered under the Ministry of Corporate Affairs (MCA) need to comply with the following compliances:

Filing of annual return.
Filing statement of account & solvency.
Filing of income tax returns.
Maintenance of books of accounts and documents.

FILING OF ANNUAL RETURN:

FORM -11 is the Annual return form required to be filled with the registrar of companies, for every LLP, irrespective of its turnover, within 60 days of the closure of the financial year i.e. on or before 30^th May every year. Even when any LLP does not carry any business operation, it has to file an annual return.

If any LLP fails to file its annual return within the prescribed time period above, a penalty of Rs. 100 (one hundred only) per day shall be levied on such LLP and its designated partners during which such failure continues.

FILING STATEMENT OF ACCOUNT & SOLVENCY:

The word solvency indicates the ability of LLP to pay off its debt. So every LLP is required to file its solvency declaration in FORM-8 (Statement of Account & Solvency) with the registrar of companies for every LLP within a period of 30 days from the end of six months of the closure of the financial year i.e. on or before 30^th October each year.

Form 8 consists of two parts-

Part A: statement of solvency

Part B: statement of income and expenditures

In case of non-compliance of the above, a penalty of Rs. 100 (one hundred) per day shall be imposed on such LLP during which such failure continues.

FILING OF INCOME TAX RETURNS:

Every LLP is required to file its income tax return in the form of ITR-V every year. LLP must file the return of income electronically under digital signature if its accounts are required to be audited under section 44AB.

INCOME TAX RETURN	DUE DATE FOR A.Y. 2021-22
A. IN CASE OF AUDIT IS NOT REQUIRED	31^st DECEMBER 2021
B. IN CASE AN AUDIT IS REQUIRED	15^th FEBRUARY 2022

LLP AUDIT REQUIREMENT:

LLP whose turnover exceeds Rs. 40 lakh or whose partner’s contribution exceeds Rs. 25 lakh, is required to get its annual accounts audited by a Chartered Accountant in practice only mandatorily. Whereas other LLPs whose turnover and contribution do not exceed the above limit, also get their annual accounts audited voluntarily.

MAINTENANCE OF BOOKS OF ACCOUNTS AND DOCUMENTS:

Every LLP is required to maintain its proper books of accounts on a cash or accrual basis for the financial year ending 31^st March every year. Books of account contain all the information regarding incomes, expenditures, assets, and liabilities of the LLP, and the same can be maintained at the registered office of such LLP and shall also be preserved for such time period as may be specified.

ROC COMPLIANCE CALENDAR FOR LLP:

PURPOSE	PARTICULARS	E-FORM	DUE DATE
ANNUAL RETURN	Every LLP is required to file its annual return within 60 days of closure of the financial year.	LLP-11	30^TH MAY
STATEMENT OF ACCOUNTS AND SOLVENCY	A statement of accounts and solvency shall be filed within 30 days from the end of six months of the closure of its financial year.	LLP-8	30TH OCTOBER

HOW CAN THE COMPLIANCE CALENDAR HELP?

Compliance Calendar LLP has a dedicated team of professionals who carry with themselves relevant experience in LLP compliances in India. Our team can help you in understanding the compliance framework applicable to your LLP business while at the same time we can advise you in the detailed compliance requirement to safeguard you and your business from penalties.

We can also assist you with the preparation of your financial statements, submission of MCA Annual Returns, Income Tax Filings and all documentation to ensure that you always comply with the law.

If you have any question, don’t worry! Our compliance team will assist you with the best advice. Get in touch with us to get all your queries resolved. You can reach us at +91-9988424211 via call/message or email us your queries at info@ccoffice.in