What are the compliance requirements for the LLP in India?

Here are some of the basic things that you should keep in mind to meet the legal compliance applicable to the LLP (limited liability partnership)). Before going into that, it becomes crucial for a business owner to choose the proper business structure as per his/her business suitability, legal compliance, tax benefits and so forth. But the LLP (limited liability partnership)) is the very preferred form of business among entrepreneurs in India.

– What are some of the required documents that one is obliged to submit for the LLP (limited liability partnership) annually?

Every LLP (limited liability partnership)) is obliged to submit LLP form 8 as a part of online LLP registration, which is about the statement of account and solvency and LLP form 11, which is about annual return on a yearly basis. The annual return has to be submitted within two months of the closer of the financial year (FY), and the statement of accounts and solvency has to be submitted within one month from the closure of the six months of the financial year (FY) to which it relates. Every LLP (limited liability partnership)) is obliged to maintain a uniform financial year (FY) ending on the 31st of March of a year.

Hence, for the financial year (FY) ended on 31st of March, 2018 due date for submission of LLP forms would be as given below;

For LLP form 8, it would be the 30th of October, 2018.

For LLP form 11, it would be the 30th of May, 2018.

– What does it mean by a statement of accounts and insolvency, and whether it has any prescribed format?

Every LLP (limited liability partnership)) is obliged to submit a statement of accounts and solvency in mentioned LLP form 8 that includes a information on LLP’s the state of solvency by the designated partners and the information related to LLP’s the statement of assets and liabilities and LLP’s statement of income and expenditure. The LLP (limited liability partnership)) should submit this form on a yearly basis.

– If one person has incorporated the LLP (limited liability partnership) on the 1st of December of the financial year (FY), when does he/she need to submit the statement of accounts and annual return?

In case your LLP business is incorporated on or after the 01/10 of the financial year (FY) can close its first financial year (FY) either on the upcoming or the next 31/03, for instance, the LLP (limited liability partnership) submits its first financial year (FY) details for eighteen months.

– How can one inspect the documents as submitted and registered by the LLP (limited liability partnership)?

The user will have to log on to the LLP (limited liability partnership) portal to get the service. The following set of information or documents for the LLP would be available for the examination by any person;

– Names of the associates and changes, if any, made therein.

– Incorporation documents.

– Annual return.

– Statement of account and solvency.

The fee that one is obliged to pay for the LLP  (limited liability partnership) examination or inspection is Rs. Fifty.

– Can one apply for the certified copies of the documents as submitted and as registered by the LLP (limited liability partnership)?

Yes, one can do so, and the user can take a certified copy or extract any documents from the below-stated list of documents by paying the nominal fee of Rs. Five per page.

– Annual return.

– Incorporation documents.

– Statement of accounts and solvency.

– Names of associates and changes, if any, made therein.

All LLPs must keep their books of accounts in the double entry system. Additionally, they must file a Statement of Solvency (Accounts) for each fiscal year ending on March 31st. LLP Form 8 should be registered with the Registrar of Companies sometime before October 30th of each year for this reason.

Annual Statements, Form 8, are applicable to LLPs registered prior to 30th September 2017. Annual Statements for LLPs registered after 1st October 2017 may be submitted in 2019.

It is worth noting that LLPs with an annual revenue of more than Rs. 40 lakh or a donation of more than Rs. 25 lakh are expected to have their annual accounts by a certified Chartered Accountant on a mandatory basis.

Alen Parker

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