Limited Liability Partnership (LLP) Annual Proceedings

"LLP Annual Proceedings"

My Dear Friends, After Completion of LLP registration, Designated Partners Must be Maintain Books of accounts and file Annual Retun for every year like Company. In this Process Some of LLP's required Audit for their Books of Accounts and Some LLP's may not require that audit. So, in this Post we will learn, what are the Requirements for Auditing of Books of Accounts of an LLP and also Annual Filings.

1. Maintenance of Books of Accounts:

         It is an Obligation for Every LLP registered under LLP Act 2008, to maintain Book of Accounts. For Knowing capability of LLP, every LLP must file "Statement of  Accounts and Solvency" in e forms mode with Registrar.

2. Applicability of Audit:

      Every LLP in India, whose annual turnover exceeds the Amount of Rs. 40Lakhs or the Total Contribution of its partners gets above the limit of Rs. 25Lakhs, is mandatory need to get its Books of  accounts audited every financial year, strictly in accordance with the rules and provisions provided in the LLP Rules of 2009.

3. Annual Filings :

1. Every limited liability partnership shall file an annual return duly authenticated with the Registrar within sixty days of closure of its financial year in form 11.

Here, it must be noted that any delay in submitting the above form 11, The Limited Liability Partnership shall be shall be punishable with fine which shall not be less than Rs. 25000 but which may extend to Rs. 500000. The designated partner of such limited liability partnership shall be punishable with fine which shall not be less than Rs. 10,000 but which may extend to Rs. 100000.

2. Every Limited Liability Partnership shall file within the prescribed time, the Statement of Account and Solvency prepared pursuant to sub-section (2) with the Registrar every year in  form 8. 

Here, it must be noted that any delay in submitting the above form 8 regulatory compliance by the LLPs of India, will invite a penalty of Rs. 100/- per day, after the above-specified period.

 

3. In case LLP has been incorporated on or before 30th September of Financial year, then LLP can Close its first financial year on the coming 31st March. In case LLP has been incorporated on or after 1st October of financial year, then LLP can close its first financial year either on the coming or next 31st March i.e. LLP files its first financial year details for 18 months.

       "Example: If LLP registered on 20th October 2015, then LLP is their Option to file Annual Proceedings. If Designated Partner choose Option 1 then file proceedings in the year 2016-17. If Designated Partner choose Option 2 then File Proceedings (from 20/10/2015 to 31/03/2017) in the year 17-18 ."

4. Form 8 and Form 11 :

• Form 8:  It is the declaration given by all Designated Partners of LLP that whether they are  able to pay its debts in full as they become due in the normal course of business or not. LLP firm shall be required to prepare Statement of Accounts and Solvency which shall be filed by all designated partners within 30 days along with prescribed fees.

                          "Due date of filing form 8 is 30th October for each year"

       Fields in Form 8 

1. Part A- Statement of Solvency
2. Part B  – Statement of Accounts, Statement of Income and Expenditure
3. Attachments – Disclosure under Micro, Small and Medium Enterprises Development Act,2006.
4. Form 8 is to be by signed digitally by two Designated partners and  certified by Chartered Accountant(in Whole time practice)/ Company Secretary(in Whole time practice)/  Cost Accountant (in Whole time practice).

                     "Fee for Form 8 is depend upon Contribution "

                                   Contribution is Less than or Equal to 100000 = Rs. 50/- 

                                                                                  100000 to 500000  = Rs. 100/-  

                                                                                  500000 to 1000000 = Rs. 150/-  

                                                              1000000 above =Rs. 200/-

• Form 11:  Form 11 is Annual Return containing number of partners, total contribution received by all partners, details of partners, details of body corporate as partners, summary of partners.Every LLP shall file Annual Return within sixty days from the closure of the financial year  along with prescribed fees.
  
  • "Due date of filing Form 11 is 30th May for each year."
  
              "Fee for Form 11 is depend upon Contribution "
                                     Contribution is Less than or Equal to 100000 = Rs. 50/- 
                                                                                    100000 to 500000  = Rs. 100/-  
                                                                                    500000 to 1000000 = Rs. 150/-  
                                                                1000000 above =Rs. 200/- 

Thank you friends next time we will meet in Company Annual Proceeding..........Bye....

--All the above contents only for Public reference and not for any other purpose. Therefore, I can not take any responsibility for the results or consequences of any attempt to use or adopt any of the information presented on this blog---

Thanks & Regards
S. Praveen Kumar Reddy.