Every type of business structure that has been registered in India, such as limited liability partnerships, must submit specific paperwork to the registrar of companies once a year. All Indian companies and LLPs are required to do LLP ROC Compliance in accordance with the Limited Liability Partnership Act of 2008 and the 2013 Companies Act. Both the yearly LLP ROC Compliance and its timely submission are required.
LLPs are governed by the Ministry of Corporate Affairs’ Registrar of Companies (ROCs). A limited liability partnership is a specific type of corporation that has no upper restriction on the number of partners it may have. Despite the fact that an LLP ROC Compliance requirements are less severe than those of a private limited company, it is crucial to remember all of the significant LLP Annual Return Filing Due Date for LLP ROC Compliance. These comprise the filing of LLP Annual Return, income taxes, and GSTs. To make sure that all necessary LLP MCA Compliance are completed throughout a specific financial year, an LLP must be well-prepared and maintain a calendar of important events.
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What is LLP?
The LLP is a separate legal entity and is liable for all of its assets, but the partners’ liability is limited to the amount of their pre-agreed investment in the LLP.
For the financial years 2022–2023, a partnership firm (including an LLP) is liable to a 30% tax. LLPs have perpetual succession and are considered separate legal entities from their partners.
Separate Legal Entity
- You can buy, sell, or hold assets that are movable, immovable, tangible, or intangible.
- The ability to bring a claim or to bring one.
- Authorization for opening a bank account
- The capacity to hire staff.
- Being able to carry out any kind of legal transaction.
LLP ROC Compliances:
The importance of LLP ROC Compliance in India is that it ensures efficient firm management, defends the rights of stakeholders, and upholds transparency and accountability in business operations. Failure to abide by LLP MCA Compliance may result in penalties, legal repercussions, and reputational harm.
LLP Mandatory Compliance for One time:
LLP Form 3:
The partners must sign an LLP Agreement and submit a copy to the Registrar of Companies in LLP Form 3 within 30 days of the formation of the LLP, as it is the LLP Mandatory Compliance for LLP Annual Filing for First Year.
Opening a Bank Account:
Any Indian bank shall open a current account in the name of the LLP. The LLP bank account should be used exclusively for any LLP-related transactions.
PAN and TAN numbers:
The Income Tax Department mandates that each Limited Liability Partnership (LLP) get a Tax Deduction and Collection Account Number (TAN) and a Permanent Account Number (PAN).(The same must from this point forward be assigned with the Incorporation Certificate in accordance with the LLP 2nd Amendment Rules, 2022.)
Registration for GST
Every company that generates more than Rs. 40 lakh (or Rs. 20 lakh for service providers) in annual revenue is required to register for GST and to abide by the GST Act and Rules. GST does not have to be obtained right away following the formation of the LLP. If necessary, the LLP may obtain this registration.
Annual LLP Mandatory Compliance:
Form 8: Accounts Statement and Solvency for LLP:
By March 31 of each year, every LLP must have its accounts prepared and closed. At least two Designated Partners are required to submit Form 8 to the Registrar before LLP Annual Return Due Date 31st October 2023.
Form 11 of the LLP Annual Return:
LLPs registered in India must submit an LLP Annual Return to the Registrar of Companies each year. Form 11 must be submitted by all LLPs along with the required filing fee after LLP ROC Filing Due Date of 30th May 2023. It contains information on the number of partners, the total number of partners, the sum of all partners’ contributions, information on body corporations as partners, and a list of all partners. Even LLPs with no running businesses are required to submit LLP ROC Compliance and financial statements. Even if an LLP makes no changes and conducts no transactions, a NIL LLP Annual Return must be filed because it is mandated by the Limited Liability Partnership Act. An LLP may not be dissolved or disbanded until all LLP MCA Compliance are done. Therefore, it is essential to turn in your LLP Mandatory Compliance on time or earlier in order to avoid paying a fine.
Income Tax Return
LLPs are required to file an income tax return each year. The due date for LLP returns is always July 31st. Any LLP that is the subject of a tax audit, however, must submit their income tax return by September 30th. LLPs must file NIL income tax returns even if they had no activity during the financial year.
DIR 3 KYC:
Each designated partner of an LLP is required to submit form DIR 3 KYC by September 30th of each financial year, or earlier.
The requirement to have your financial records audited only applies to LLPs with a LLP Annual turnover of at least Rs. 40 lakhs or capital contributions of at least Rs. 25 lakhs.
LLP Annual Return Filing Due Date:
LLP Annual Return Filing Due Date for various LLP ROC Compliance are as follows-
- LLP Form 3 – LLP Annual Filing Due Date for Form 3 is 30days post formation of LLP, Failing to file will attract penalty of 100/- per day with no upper limit
- Form 8 – LLP Annual Filing Due Date is 30th October of each financial year for filing LLP Form 8.
- Form 11 – Form 11 must be submitted within 60 days of the financial year’s end, which is on May 30 of each year.
Late filing fees for forms LLP 8 and LLP 11:
Form LLP 8 and LLP 11 comprises a Statutory Compliance for LLP, If an LLP misses the due date for submitting its LLP Annual Return, it will be charged a penalty of Rs. 100 per day, per form. The penalty will accumulate from the due date for filing comprises until the actual filing of the return.
An LLP cannot function unless it has the appropriate registration. Without registration, performance cannot be successful. ROC compliance is a crucial component of LLPs in this regard. This article’s goal was to illustrate how crucial ROC compliance is for limited liability partnerships.