ANNUAL FILING FOR LLP
What is Annual Filing of LLP?
Limited Liability Partnership is a form of business entity that is seen as a partnership. However, it does have the limited liability protecting the assets of the LLP owners. Governed by the Limited Liability Partnership act of 2008, it is most popular form of business infrastructure after a company. Limited liability partnerships are required to meet fewer criteria for compliance on filing annual returns, in comparison to companies.
Advantages of Annual Filing:
1. Higher Credibility- Annual compliance provides for higher credibility to the organization for loan approvals or any other similar requirements.2. Record of Financial Worth- Annual compliance filings by LLP’s provide records to other companies regarding their financial worth, which may result in new and interested investors.
3. Stays Active and No Penalties- With regular filings, LLPs are not declared as defunct, and stays active. Also, annual compliance filings are mandatory and hence involve penalties (additional fees) to LLPs, when they default on filings.
4. Conversion or Closure- Regular annual compliance filings facilitate easier conversion of Limited Liability Partnerships into other types of companies, as well as quicker resolutions in case of dissolution of partnerships.
Forms required to be filed for Annual filing:
1. LLP Form 8- Statement of accounts and solvency shall be filed within 30 days from the end of six months of the financial year to which it relates. 2. LLP Form 11- Annual Return is required to be filed within 60 days of close of the financial yearProcedure for Annual Filing:
1) The first step is to obtain a Digital Signature Certificate (DSC) by all the Directors. Documents required to obtain DSC are:
- PAN Card of the Director
- Aadhar card of the Director
- Photo
- Email ID
- Contact Number
2) After obtaining DSC, the next step is to obtain the Director Identification Number (DIN) by filing form DIR-3 along with a self-attested identity proof, address proof and a photo. (If directors are more than three as DIN for up to three directors can be obtained through Spice+ Inc-32).
3. Submit Documents- Complete checklist of the documents required is to be submitted at the earliest.
4. Annexures, Forms are prepared- All the annexures and forms required to be prepared for annual filing shall be prepared by our experts.
5. You receive Acknowledgement- After filing of all the forms along with the required annexures on Ministry of Corporate Affairs (MCA) portal, you will receive the acknowledgement receipt.
Documents required for Annual Filing:
1. Name of LLP
2. List of Partners with holdings
3. Last year's tax return (if applicable)
4. LLP Partnership Deed
5. DSC of any one partner
6. Bank statement of LLP of the relevant year
7. Details of any transaction like sale, purchase, expenses etc.