LLP Compliance

Limited Liability Partnerships (LLPs) combine the flexibility of a partnership with the advantages of limited liability. However, LLPs must adhere to specific compliance requirements to ensure smooth operations and avoid penalties. At Global Taxman, we provide expert services to help LLPs meet all regulatory obligations efficiently.

What is LLP Compliance?

LLP Compliance refers to the statutory and regulatory requirements mandated by the Limited Liability Partnership Act, 2008. These include filing annual returns, maintaining proper records, financial reporting, and other obligations. Compliance ensures legal recognition and uninterrupted operations of the LLP.

Key Compliance Requirements for LLPs

• Annual Return Filing (Form 11): LLPs must file their annual return with the Registrar of Companies (RoC) within 60 days from the end of the financial year.
• Statement of Accounts & Solvency (Form 8): LLPs are required to prepare and file financial statements within 30 days from the end of six months of the financial year.
• Income Tax Return Filing: LLPs must file their income tax returns annually, with the due date depending on the audit requirements.
• DIN eKYC: Designated partners must complete the Director Identification Number (DIN) eKYC annually to keep their DINs active.
• GST Compliance (if applicable): LLPs registered under GST must file monthly, quarterly, or annual GST returns.
• Maintenance of Records: LLPs must maintain accurate financial records and a register of partners.

Benefits of Staying Compliant

• Avoid Penalties: Compliance helps LLPs avoid fines, penalties, and legal consequences.
• Ensures Credibility: Adhering to compliance builds trust and reliability among clients, investors, and stakeholders.
• Access to Financial Support: Compliant LLPs are more likely to receive loans and other financial assistance.
• Business Continuity: Proper compliance ensures uninterrupted business operations and reduces legal risks.

Step-by-Step Compliance Process

1. Maintain Financial Records: Record all transactions, financial data, and partner contributions.
2. File Annual Return: Submit Form 11 to the Registrar of Companies within the due date.
3. Prepare Financial Statements: Prepare a Statement of Accounts and Solvency and file Form 8.
4. Complete Tax Filing: Submit income tax returns before the deadline.
5. Update Partner KYC: Complete DIN eKYC for designated partners annually.
6. File GST Returns: Submit GST returns if applicable to the business operations.

Documents Required for LLP Compliance

• LLP Agreement.
• Financial statements, including the balance sheet and profit & loss account.
• Details of partner contributions and profit-sharing ratios.
• GST filing records (if applicable).
• Bank statements and transaction details.
• Income tax computation and filing records.

Why Choose Global Taxman?

• Experienced Professionals: Our team ensures timely and accurate compliance filings.
• Comprehensive Services: From annual returns to tax filings, we handle all your compliance needs.
• Cost-Effective Solutions: Transparent and affordable pricing for compliance services.
• End-to-End Support: We provide complete assistance from documentation to filing and approvals.

Frequently Asked Questions (FAQs)

• What happens if an LLP fails to file its compliance? Non-compliance may result in penalties, fines, and the LLP being declared inactive or struck off.
• Is GST registration mandatory for all LLPs? GST registration is required if the LLP’s turnover exceeds the prescribed limit or if it operates in specified categories.
• Can an LLP file compliance documents after the due date? Yes, but late filing attracts penalties and additional fees.
• What is the penalty for non-compliance? Non-compliance may result in a penalty of ₹100 per day per form until rectified.