LLP Annual Return

The LLP (Limited Liability Partnership) annual return is an important filing requirement that is filed yearly to avoid penalties and maintain compliance with the MCA.

The MCA or Ministry of Corporate Affairs maintains the LLP Annual Return which should be filed electronically. Remember to ensure the accuracy of all the provided information in the form because there is no provision for submitting the return again.

Despite management changes or business activity, LLPs should submit their Annual Returns and Financial Statements to the MCA on time.

Importance of Annual Return Filing

Following are the supporting points that describe the importance of Annual Return filing for LLPs:

• Annual return filing is an essential step for ensuring compliance with legal requirements and regulations.
• It fosters transparency among stakeholders, partners, clients, and investors by providing correct financial and other details and making the LLP a trusted entity.
• It helps in maintaining systematic records for future needs, avoiding disturbances, and continuity in business.

Forms for LLP Annual Filing

In India, every LLP should thoroughly prepare and submit its Annual ROC (or Return of Compliance) Forms to the Registrar of Companies. There are two different types of ROC forms that must be filed by an LLP in a year.

• Form LLP 11: This is an LLP Annual Return form that should be filed within 60 days from the closing of a financial year.
• Form LLP 8: This is a Statement of Account & Solvency for an LLP and should be filed within 30 days before the end of six months of a financial year’s closing.
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Some key points about Form LLP 11

• Form LLP 11 also known as the LLP Annual Return outlines any type of changes initiated in the management such as Designated Partners, in the Financial Year.
• Submitting the Form LLP 11 Annual Return is a legal requirement for LLPs established in India, despite their management changes or business status.
• It is compulsory to file a NIL return under the Limited Liability Partnership Act, even if the LLP has not made any changes or business activities.
• This requirement confirms the LLP’s compliance with the law, and provides the latest and most accurate information to the MCA, even if there are no LLP business activities.
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Important Document to File LLP Form 11

Here is the list of important documents that are required for a successful filing of LLP Form 11 Annual Return –

• LLP Identification Number
• Name and complete registered office address of the LLP
• Correct Business Category of the LLP
• Details of Partners of the LLP
• Particulars of compounding offenses, if any
• Principal business activities of the LLP
• Summary of Designated Partners and Partners
• Total received contribution and obligation of the contribution of all partners of the LLP.

Remember that the LLP Form 11 is not allowed to be submitted again. Hence, ensure that you enter only the correct details in the form. Moreover, the total received contribution in the annual return
by all partners of the specific LLP should match the entered details in the LLP Form 8 which is Statement of Accounts &  Solvency. This form should be filed before October 30.

LLP Annual Return Form 11 Due Date

The due date or the final date for filing an LLP Form 11 Annual Return of an LLP is under 60 days before the financial year-end.

In India, the Financial Year for all LLPs closes on March 31, and the LLP Form 11 Annual Return should be filed before May 31 of each Year.

LLP Form 11 Late Filing Penalty

If the LLP Form 11 Annual Return is not filed before May 31, a penalty of Rs.100 / day will be charged until the non-compliance is corrected. It is important to note that the imposed penalty amount will continuously increase of delay in late filing for each day.

Pre-filling Requirements for MCA LLP Form 11

The following requirements should be complied with for advantage of the pre-filling of MCA LLP Form 11 –

• LLPIN or LLP Identification Number: The LLP Identification Number is usually assigned to an LLP for filing the necessary data in advance in the form.

• Declaration of Contribution: Providing the declaration of the contribution received by all the LLP partners is important and will be utilized for pre-filling purposes.

• Completion of e-Form 4 Requirements: Ensure that the fee payment to e-Form 4 has been done and the execution of e-Form 4 has been over.

Note – e-Form 4 include the details of the notice of revision in the position of designated partners,
appointment, and cessation.

•  DSC of Designated Partner: Obtain the DSC (Digital Signature Certificate) of your designated partner. It will be required to submit the form.

To streamline the pre-filling process for MCA LLP Form 11, it is essential to meet the above-mentioned requirements that ensure a precise and efficient filing.

Procedure for Filing LLP e-Form 11

Here is the step-by-step guide for filing an LLP e-Form 11 effortlessly. The Designated partner has right to upload the e-Form on the LLP website only after registering as a website user.

• Download the form from the official website of MCA and fill in the details in the e-Form. The provided information should be exact as of March 31 of the Year.
• Now, enter the LLP identification number (LLPIN) of the LLP and tap on the Pre-Fill option.
• The system indicates the name, registered office address, email ID, and other information if this is declared under section 13(2). Enter the new valid email address only if there is any change in the existing email ID.
• Choose the relevant business category of the LLP from the drop-down list. The system will automatically indicate the main business activities based on the LLP identity number.
• The system will also show the total number of partners, designated partners, and total requirement of the contribution of the LLP partners.
• Enter the amount of received contribution by all LLP partners. The amount must be the same as the contribution filled in eForm 8 for the corresponding financial year.
• Enter the total number of partners and designated partners as of 31 st March of the financial year for which the return is being filed.
• When the details are updated on the LLP website, the system will produce a service request number (SRN). Enter the SRN when filing this form.
• Enter details of penalties charged on the LLP, its partners, and designated partners. It also requires the details of offenses compounded by the LLP.
• Click on the ‘Attach’ option to upload the document. You can also attach other documents, by clicking the ‘Optional Attachment’ option.

The signing of LLP Form 11

As it is clear from the above, The LLP Form 11 should be signed with the two designated partners’ digital signatures. If, the total obligation of the contribution of partners of the LLP is more than Rs. Fifty lakhs or turnover of LLP is more than Rs. 5 Crores, then LLP Form 11 should be certified by a full-time practice Company Secretary.

If somehow, the overall obligation of the contribution of LLP partners is less than Rs. Fifty lakhs and the turnover of the LLP is less than Rs. 5 Crores, then LLP Form 11 should be certified by the LLP
designated partner.

LLP Form 8

The LLP Form 8 is known as the Statement of Account and Solvency. It is a yearly filing requirement that should be filed by all LLPs registered in India with the Registrar of LLPs. It is an informative summary of the financial position, liabilities, assets, and solvency of the LLP. Whatever the turnover of the LLP, it is compulsory to submit Form 8 yearly to the Ministry of Corporate Affairs.

Some important points about LLP Form 8 –

• Annual Filing: It is mandatory to file LLP Form 8 every year by all LLPs. This filing should be completed within 30 days from the completion of 6 months of the financial year. The deadline for this filing usually comes on October 30th each year.
• Financial Contents: The LLP Form 8 contains financial information such as a statement of profit and loss, changes in financial position, and the balance sheet.
• Solvency Declaration: One of the important parts of LLP Form 8 is the solvency declaration. The declaration confirms that the LLP is allowed to pay its debts as they become due in the normal circumstances of business. Having any insolvency, then it should be declared in this document.
• Statutory Compliance: All LLPs are required to file LLP Form 8 which is mandatory and failing to do so can result in fines or penalties. Thus, it is important to keep up compliance with the
  LLP Act and regulations.
• Audit: The financial statements contained in the LLP Form 8 should be audited that completely depend on the turnover and different criteria of the LLP. The audited statements provide an additional level of confirmation about the authenticity of the financial information related to LLPs.

Governing Laws of LLP Form 8

LLP Form 8 is regulated by the provisions of Section 34(2) and 34(3) of The LLP Act, 2008 in addition to Rule 24 of The Limited Liability Partnership Rules, 2009.

Components of LLP Form 8

LLP Form 8 is regulated by the provisions of Section 34(2) and 34(3) of The LLP Act, 2008 in addition to Rule 24 of The Limited Liability Partnership Rules, 2009.

• Part A – This part is related to the Statement of Solvency of the LLP. It declares the solvency of the LLP, ensuring its potential to comply with financial obligations as they become required in the normal circumstances of business. If there is any possibility of insolvency, it must be revealed here.
• Part B – This part is related to the Statement of Accounts, Income, and Expenditure. It provides complete financial information about the LLP, its balance sheet, statement of profit and loss (or income and expenditure statement), and any significant changes in financial position.

The last date for Filing LLP Form 8

The last or due date for filing the LLP Form 8 is every year’s October 30. It must be remembered that filing Form 8 is important and mandatory for all LLPs, regardless if an LLP has started business activities or not.

Important Details for Filing LLP Form 8

The following details are required to file the LLP Form 8 successfully –

• Name and complete registered address of the LLP
• Jurisdiction of Police Station for the LLP’s registered address
• LLP Identification Number or LLPIN
• Statement of Assets and Liabilities as of 31st March
• Statement of Income and Expenditure for the financial year
• Statement of any charge is imposed in favor of an Asset Reconstruction Company (ARC) or assignee
• Statement of the obligation of contribution exceeds Rs 25 lakhs
• Statement of the turnover of the LLP exceeds Rs 40 lakhs.

Important Attachments for LLP Form 8

The following documents are needed to be attached while filing the LLP Form 8 –

• Disclosure under the MSME Development Act, 2006 (mandatory)
• A statement of possible responsibilities in case of emergency liabilities.
• Other additional details can be included in the Form 8 as optional attachments.
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Important Certification for LLP Form 8

The LLP Form 8 is required to be certified by designated partners of the LLP and an experienced professional, such as a Company Secretary, Chartered Accountant, Company Secretary, or Cost and Works Accountant (CWA).

• All LLPs are needed to file LLP Form 8 each year.
• The filing last date is within 30 days from the end of six months of the financial year. Usually, this date falls on October 30 each year.
• For accurately filing LLP Form 8, properly maintained financial records and audited financial statements are necessary. Failing to do so can result in fines and non-compliance with administrative requirements.