Schedule Your Consultation Now

Documents Required

• Mandatory Documents

1. Form LLP 4

2. Audited Financial Statement

3. Auditor’s Report

4. Consent of Designated Partners

• Additional Documents

1. Notice of changes in Registered Office

2. Form LLP 7 (changes in the partners or designated partners)

3. Form LLP 11 (LLP has changed its name or object clause)

4. Form LLP 12 (LLP has merged with another LLP)

5. Form LLP 18 (LLP has been dissolved)

Introduction

In India, Limited Liability Partnerships (LLPs) must submit an LLP Annual Filing. It entails providing the Registrar of Companies (ROC) with particular documents and information within the allotted period. Ensuring openness, adhering to regulations, and providing the ROC with regular updates on the LLP's operations and financial situation are the main goals of this file. The annual number of compliances required of a Limited Liability Partnership is remarkably minimal when compared to the obligations imposed on private limited businesses. The fines appear to be somewhat high, though. Penalties for noncompliance could cost a Private Limited firm as little as INR 1 lakh, but they could cost an LLP as much as INR 5 lakh.

Eligibility Criteria

The necessity to present audited financial statements and the status of the LLP are the main determining factors for eligibility for LLP annual filing in India.

Important requirements for eligibility:

1. LLP Status: The LLP needs to be a legally recognized and operational organization in India.

2. Financial Statements: For the applicable financial year, the LLP was required to prepare and audit the financial statements.

3. Designated Partners: A minimum of two individuals must be named partners in the LLP.

4. Compliance with Statutory Requirements: All relevant statutes, such as the following, must be complied with by the LLP:

• Submitting income tax returns

• Paying mandatory obligations such as PF, ESI, and GST

• Respecting labor laws and other applicable rules

Who can apply for Annual LLP Filing?

Generally, an LLP designated partners are in charge of filing the yearly application. They can legally submit documents and communicate with the Registrar of Companies (ROC) on behalf of the LLP because they are authorized representatives of the LLP. On behalf of the approved partners, an appointed company secretary or chartered accountant may, however, manage the LLP annual filing. This is frequently carried out to guarantee adherence to the intricate requirements and to save the partnerstime.

Step by Step Procedure for Annual Filing on an LLP

1. Compile the Required Documents:

• The main form used for annual filing is Form LLP 4.

• Balance sheet, income statement, and cash flow statement are all audited financial statements.

• A report attesting to the correctness of the financial statements is called an auditor report.

• Signatures of Appointed Partners: A signed agreement from the appointed partners.

• Additional Documents (if any): Form LLP 7 (Changes in Partners), Notice of Changes in Registered Office, etc.

2. Prepare Form LLP 4:

• Give precise details regarding the LLPs:

Partners S

Designated Partners

Changes in partnership

Financial data

Compliance with statutory requirements

• Include any necessary documentation.

3. Verify and Sign:

• Verify that all of the data on Form LLP 4 is accurate.

• Obtain the authorized representatives or approved partners to sign the paperwork.

4. Digital Signature:

• Obtain a digital signature for each of the designated partners, if asked by the ROC.

5. Send a file to the ROC:

• Send Form LLP 4 and any other necessary paperwork to the ROC via an online portal or a registered agent.

• Make the required fee payments.

6. Recognition:

• Upon successful filing, the ROC will provide an acknowledgment receipt.

7. Follow-up (if required):

• React as soon as possible to any questions or requests for clarification from the ROC.

Additional Tips:

• Timely Filing: To avoid penalties, submit your work before the deadline, which is typically September 30.

• Speak with an Expert: Consult a legal or accounting expert if you have any questions concerning any part of the filing procedure.

• Maintain Documents: For future reference, keep copies of any documents that have been filed.

• Keep Up with: Keep track of any modifications to the Companies Act or ROC rules that might have an impact on the filing procedure.

Compliances to be followed Post Annual filling of an LLP

Following the LLP annual filing, there are a number of compliances that must be adhered to:

1. Keep Up-to-Date Records: Make sure that all of the LLP records, such as its financial statements, meeting minutes, and other pertinent papers, are correct and current.

2. Regular Financial Reporting: As mandated by the Companies Act and other pertinent requirements, prepare and submit the LLP yearly financial statements.

3. Income Tax Returns: Submit the LLP income tax returns by the deadline specified.

4. GST Returns: In accordance with the GST legislation, file GST returns if applicable.

5. Provident Fund and Employees State Insurance Returns: File the necessary PF and ESI returns if the limited liability partnership (LLP) employs people.

6. Statutory Audits: If the LLP is obliged to carry out statutory audits, make sure they are finished by the deadline.

7. Annual General Meeting (AGM): Call the meeting, hold it within the allotted time, and submit the minutes to the ROC.

8. Additional Statutory Compliances: Fulfill any additional legal obligations that are particular to the LLP sector or operations.

Penalties that may arise due to Non-compliance of Procedure

The following penalties may arise from noncompliance with the annual filing requirements:

1. Fines: The Registrar of Companies (ROC) may impose monetary fines on the LLP.

2. Striking Off: The ROC may start legal action to remove the LLP from the register if it does not file yearly returns for a number of years. This implies that the LLP will be abolished.

3. Legal Action: The government may file a lawsuit against the LLP and its partners in extreme circumstances.

4. Loss of Credibility: Failure to comply with regulations may harm the LLP's credibility and reputation, making it more difficult for it to do business or get loans.

5. Partners' Disqualification: In some situations, the chosen partners might not be allowed to associate with any other limited liability partnership (LLP).

Advantages of Annual filing of LLP
Explore tailored solutions to secure your startup and MSME's legal needs.

An LLP (Limited Liability Partnership) must file an annual report, which has various advantages for both the LLP and its partners. The following are some of the main benefits:
Explore tailored solutions to secure your startup and MSME's legal needs.

1. Preventing Penalties: Prompt filing guarantees that the LLP abides by the Companies Act and keeps the Registrar of Companies (ROC) from levying penalties or fines.

2. Sustaining Legal Status: The LLP can keep its legal standing and prevent being removed from the register by filing on a regular basis.

3. Public Disclosure: The LLP's financial statements are disclosed as part of the annual filing process, which can improve transparency and foster stakeholder trust.

4. Investor Confidence: Increasing an LLP's market reputation and attracting investors are two benefits of transparent financial reporting.

5. Accountability among Partners: The LLP's partners are held accountable and transparently inside the partnership by disclosing their interests and contributions through annual reporting requirements.

6. Regulatory Compliance: The LLP's adherence to the yearly reporting requirements is indicative of its dedication to regulatory compliance and good governance.

7. Preventing Legal Issues: Timely filing aids in avoiding legal issues that can impair the LLP's ability to carry out its business.

8. Encouraging Transactions: Lenders, business associates, and other stakeholders are more likely to have faith in compliant LLPs.

9. Deductions: The LLP may maximize its tax obligations and obtain qualified tax deductions with accurate annual filing.

Disadvantages of Annual Filing of LLP
Explore tailored solutions to secure your startup and MSME's legal needs.

1. Time-consuming: For smaller LLPs with less resources, preparing and submitting the necessary documentation might take a considerable amount of time.

2. Expenditures: The annual filing process entails some associated expenditures, such as professional fees, government fees, and digital signature fees.

3. Complexity: LLPs with complicated financial structures or numerous partners may find the filing process particularly challenging.

4. Potential Penalties: The LLP may be subject to fines or penalties if the yearly filing is not completed accurately or within the allotted period.

5. Disclosure of Sensitive Information: Although yearly filing encourages openness, it also entails the disclosure of some operational and financial data that can be of private interest to the LLP.

It's crucial to remember that these possible drawbacks can be reduced by:

1. Organizing in advance: Stress can be minimized and the availability of the required documentation can be ensured by preparing well in advance for the annual filing.

2. Getting expert help: Speak with an expert in law or accounting to expedite the procedure and prevent mistakes or delays.

3. Keeping precise records: Maintaining thorough records all year long can make the process of creating annual financial statements easier.

Overall, although annual filing may have certain disadvantages, they are usually outweighed by the advantages.