Compliance for Private Limited Liability Partnership (LLP)
Ensuring compliance for a Private Limited Liability Partnership (LLP) is crucial for maintaining your business's legal standing and avoiding any penalties or legal issues. At Accto, we streamline the entire compliance process, making it easy for you to stay on top of all necessary requirements.
What Documents Are Required?
For proper compliance, several documents must be maintained and submitted at various stages. Here's a comprehensive list of what you will need:
- LLP Agreement: This is the foundational document that outlines the rights, duties, and responsibilities of partners.
- PAN Card of the LLP: Necessary for all financial transactions and tax filings.
- Certificate of Incorporation: This document confirms the LLP's legal existence.
- ID Proof of Partners: This includes documents like Aadhar Card, Voter ID, or Passport.
- Address Proof of Partners: Utility bills, bank statements, or rent agreements are required for this purpose.
- Bank Account Statements: These are essential for financial records and annual return filings.
- Income Tax Returns (ITR): Filed annually, showing the income and expenses of the LLP.
- Books of Accounts: Detailed records of all financial transactions, including sales, purchases, receipts, and payments.
- Audit Reports: If the turnover exceeds a certain threshold, an audit report prepared by a certified Chartered Accountant is mandatory.
The Entire Process
Ensuring compliance involves several steps throughout the year. Here’s a step-by-step overview of what needs to be done:
1. Annual Return Filing (Form 11):
- Must be filed within 60 days from the end of the financial year.
- Includes details of the partners and any changes in the management.
2. Statement of Account & Solvency (Form 8):
- Filed within 30 days from the end of six months of the financial year.
- Contains a declaration on the solvency of the LLP and a summary of its financial position.
3. Income Tax Filing:
- The LLP must file its ITR by July 31st each year.
- In case of audit, the due date is extended to September 30th.
4. Books of Accounts:
- Must be maintained on a cash or accrual basis.
- Records should be preserved for at least eight years.
5. Designated Partner Identification Number (DPIN) KYC:
- Annual compliance for designated partners to update their KYC details.
6. Other Compliance Filings:
- Depending on the nature of the business, additional filings may include GST returns, TDS returns, and more.
Non-Compliance and Penalty
Non-compliance with statutory requirements can lead to significant penalties and legal issues for an LLP. Here are some common non-compliances and their penalties:
- Late Filing of Annual Return (Form 11): A fine of Rs. 100 per day of delay.
- Late Filing of Statement of Accounts (Form 8): A fine of Rs. 100 per day of delay.
- Non-Filing of Income Tax Return: Penalties as per the Income Tax Act, ranging from Rs. 1,000 to Rs. 10,000.
- Failure to Maintain Books of Accounts: Penalties under the LLP Act, including fines and legal action.
How Accto Helps with LLP Compliance
At Accto, we understand the complexities involved in maintaining compliance for an LLP. Our comprehensive services ensure that your LLP meets all statutory requirements timely and accurately. Here’s how we assist you:
1. Annual Compliance Management
- Automated Reminders: Never miss a deadline with our automated reminder system.
- Document Preparation and Filing: Our experts prepare and file all necessary documents, including Form 11, Form 8, and income tax returns.
- Financial Statement Preparation: Accurate preparation of balance sheets, profit and loss accounts, and other financial statements.
2. Event-Based Compliance Support
- Change Management: Assistance with filing changes in partners, registered office, and other significant events.
- Legal Documentation: Drafting and filing supplementary agreements, resolutions, and other required legal documents.
3. Non-Compliance Resolution
- Penalty Mitigation: We help in assessing and minimizing penalties for past non-compliances.
- Regulatory Liaison: Our team liaises with regulatory authorities to resolve compliance issues swiftly.
4. Ongoing Advisory
- Expert Consultation: Regular consultations to keep you informed about new compliance requirements.
- Compliance Calendar: A customized compliance calendar tailored to your LLP's needs.
Pricing Plans
Scale
₹ 9,999 /-
Inclusive of all Tax
- Dedicated account manager
- DIN eKYC for (2 Directors)
- Accounting & Bookkeeping (Upto 300 Transaction / year)
- Annual Return Filling
- Income Tax Filling
FAQ on OPC Compliance
A Private Limited Liability Partnership (LLP) is a hybrid business entity that combines the advantages of a company and a partnership. It offers the flexibility of a partnership with the benefits of limited liability for its partners.
Key compliance requirements include filing the annual return (Form 11), statement of account & solvency (Form 8), income tax returns, maintaining books of accounts, and annual KYC for designated partners..
The annual return (Form 11) must be filed within 60 days from the end of the financial year, typically by May 30th.
Form 8 is the Statement of Account & Solvency that must be filed within 30 days from the end of six months of the financial year, typically by October 30th.
LLPs must get their accounts audited if their annual turnover exceeds Rs. 40 lakhs or their contribution exceeds Rs. 25 lakhs.
Non-compliance can result in penalties, fines, and legal consequences for the LLP and its partners, including potential disqualification of the partners.
Accto provides comprehensive compliance services, including document management, timely reminders, expert assistance, hassle-free filings, custom compliance packages, and ongoing support.
The LLP agreement, certificate of incorporation, details of partners, and any changes in management during the financial year are required for filing the annual return.
By partnering with Accto, you can ensure compliance through our expert guidance, timely reminders, and comprehensive compliance management services.
LLPs must file their income tax returns annually by July 31st. If an audit is required, the due date is extended to September 30th. Accto assists in preparing and filing these returns..
Yes, LLPs are required to maintain detailed records of all financial transactions, which should be preserved for at least eight years.
DPIN KYC is an annual compliance requirement for updating the KYC details of designated partners. It ensures that the partners' information is current and helps maintain the LLP's legal standing.