Compliances

Annual Compliance Package- LLP-Post Incorporation Year

Annual Compliance Package for an LLP at an all-inclusive price, including Government Fees*

*Annual filing of Forms 8 and 11 only included. Late fees and penalties not included.

Complete By* : Year End

Pricing Summary

Traditional CA/CS Price : ₹ 15,000 /-

Other Online Price : ₹ 10,000 /-

Our Base Price : ₹7,288 /-

Govt. fees & taxes : ₹1,712 /-

You Pay: 9,000/- all inclusive

Government Fee included in above

You Save : ₹1,000/- to- 6,000 /-

Add to cart

What do you get?

15 Mins free Consultation with an EXPERT

Deliverables scope - period after incorporation till 31-March

Filling and uploading of Form 8

Drafting of Notices and Agendas for Partner meetings (Four)

Drafts for appointment of Auditor (if required)

Filling and uploading of Form 11

Drafting of resolutions for meetings

IPro*– basic secretarial data entry done for no time lag

[*Software for Company Law and related compliances]

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Annual compliance?

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we only ask for required documents

Limited Liability Partnership (LLP)

 

A business enterprise can be owned and organised in several forms. Therefore, the form of business organisation must be chosen after giving due thought and consideration in respect of all the aspects of the business entity and its suitability to the business ideas of an entrepreneur. These factors do not exist in isolation, but are interdependent. All these factors are important in their own right. One such legal form is Limited Liability Partnership.

 

Limited Liability Partnership is an alternate corporate business entity that provides the benefits of limited liability of a company but allows its members the flexibility of organising their internal management on the basis of a mutually-arrived agreement, as is the case in a partnership firm, introduced in India by way of Limited Liability Partnership Act, 2008.

 

Documents Required

Incorporation Certificate

LLP Agreement

Any supplemental Agreement

Bank Account Details

Forms filed

* (All documents in Pdf scanned. Image file in jpeg format)

* (All documents to be Self Attested and signed on each page)

for details, click here

Compliances

Annual Compliance Package- LLP- Post Incorporation Year

Annual Compliance for post Incorporation Year to be complied by an LLP

Steps for Compliance

Collect information and documents

Drafting and Preparation of documents required

Filling of forms

Sending to LLP for Certification and uploading

Benefits of

Outsourcing Compliance

Cost-Saving

By outsourcing, you save Money: on paying the salaries, on taxes thereupon, office supplies You also get the benefits of full-time or part-time employee(s). You only pay for what you need. There is no loss in productivity costs that come along with hiring full-time employees.

Eliminate Time and Costs of Hiring Processes

The recruitment process takes your precious business time, adds to costs, and requires dedicated time either from yourself or your employee. Many companies do not consider the time they spend looking for a professional accountant but time is to be equally measured in terms of cost involved. It must be accounted for.

Saving your Time and focus on revenue

It will help in generating more revenue, as well as you free time to network and building relationships with your customers.

Expert Compliance Officers

Outsourcing offers you the possibility of hiring a professional with a higher level of expertise at an affordable price.

Annual Compliances for LLPs

Post Incorporation, an LLP has to comply with certain obligations/ compliances imposed by the LLp Act, 2008  

 

These compliances are either mandatory in nature or are event-based. The Limited Liability Partnership Act, 2008 or the Limited Liability Partnership Rules, 2009 do not mandate holding of compulsory meetings of Designated Partners, at given intervals, nor of Annual general Meeting or other General Meetings. But references are made wherein resolutions are required to be filed with the ROC. Thus, it follows that though mandatorily Meetings are not required to be held, business can be transacted only through resolutions passed either by the Designated Partners (Board in Company parlance) or of all Partners (Shareholders Meeting in Company parlance).

 

Contd….

 

Contd…

 

They are generally as follows:

 

Mandatory:

  • Annual Return- Filing of E-form 11
  • Statement of Accounts & Solvency- Filling & Filing of E-Form 8
  • DIR- 3 KYC (either e-form or web based form)

 

Event Based

  • Calling and holding of General Meeting along with drafting of Minutes.
  • Updating of LLP Agreement- changes made in any- in E-Form 3
  • Changes among designated partners’ or partners’ or change in any particulars of designated partners’ or partners’ of a LLP by filing E-Form 4
  • Other event based forms

 

  • Annual Return (Form 11) to be filed within 60 days (i.e 30th May) from the end of F.Y.
  • Statement of Accounts and Solvency or Financial Statements (Form 8) to be filed on or before 31st October from the end of F.Y.
  • Income Tax Return (ITR 5) to be filed within 31st July (when audit is not required) and 31st October in other cases, from the end of F.Y.

 

Note:

  1. Form 11 needs to be certified by Practicing CS if Turnover crosses Rs. 40 lakhs or Capital contribution crosses Rs. 25 lakhs.
  2. Form 8 needs to be certified by Practicing CAif Turnover crosses Rs. 5 crore or Capital Contribution crosses Rs. 50 lakhs.

Accounting and Audit of LLP

 

Accounting is the most important aspect of any business activity. It helps the business entity to analyze its financial health and plan future prospects of business. Accounting involves preparation of Financial statements such as Balance Sheet, Profit & Loss Statement and Cash Flow statement. Accounting is an internal process and it is to be done with utmost care.

Audit is checking of accounts performed by an independent auditor about its correctness and its compliance with the existing accounting standards. The auditor certifies that the financial statements of the entity gives a true and fair view of the financial position of the entity.

 

Audit requirements of a Limited Liability Partnership:

  • As per LLP Act, 2008 audit is mandatory if-
    • The turnover exceeds Rs 40 lakhs in a Financial Year
    • The total contribution exceeds 25 lakhs in a Financial Year
  • As per section 44AB of Income Tax Act, 1962 audit is mandatory if-
    • In case of Business - turnover exceeds Rs 1 crore.
    • In case of Profession - turnover exceeds Rs 50 lakhs

Why the provisions of LLP are being aligned with Companies Act, 2013

Limited Liability Partnerships is an attractive structure as a business entity from compliance perspective, given it provides operational facilities of that of a full fledged company like a separate entity, limited liability; with fewer compliances burden. Although the Central Government, under the LLP Act, 2008, has been given the power to make certain sections of the Companies Act, 2013 applicable to Limited Liability Partnerships. Companies and LLP(s) both being body corporates, the intent of this could be to bring greater convergence in governance of body corporates.

Some of the important sections of Companies Act, 2013 presently applicable to Limited Liability Partnerships are:

  • Separate concept of Partner & Designated Partner: Like in a company Board of Directors are in charge of management of the shareholders’ funds Designated Partners play a similar role in an LLP, ie. management of funds invested by partners.
  • Maximum number of Partnerships: No person may become Designated Partner in more than 20 LLPs.
  • Disqualification for appointment of Designated Partner: On non-compliance with Section 164 of the Companies Act, 2013, a Designated Partner shall stand disqualified.
  • Appeals against Strike off of LLP: shall now be made to NCLAT on Registrar notifying an LLP as struck off and dissolved under section 75.

 

Recent Changes in LLP Law

 

The LLP (Amendment) Act, 2021 shall come into force from 1st April, 2022 as per MCA notification dated 11th February, 2022. The Central Government also notified Limited Liability Partnership (Amendment) Rules, 2022 which shall come into force from 1st April, 2022. The legislative intent behind the amendments is to make the LLP law more business friendly and to decriminalize certain provisions of the Act. The LLP Amendment Act has inserted 7 new sections, 3 sections have been omitted whereas 5 sections have been substituted. Further the MCA has notified certain sections of the Companies Act, 2013 to be applicable for LLPs. This blog makes an attempt to capture the major changes that have been brought about in LLP law. 


 

  1. Earlier LLPs were required to have two designated partners with one of them being resident. To pass the test of residency a Designated Partner under the LLP Act had to stay in India for a period of 182 days during the immediately preceding one year. After the amendment comes into force, a designated partner has to stay 120 days during the financial year to qualify the test of residency.

 

  1. Earlier in choosing the name of the LLP one had to keep in mind that they name chosen must not be ‘identical or too nearly resembles’ to that of any other trade mark which is the subject matter of an application for registration of any other person. After the amendment, as long as the name of LLP is not ‘identical or too nearly resembles’ to any other registered trademark, such name is acceptable, among other things.

 

  1. A new section has been inserted to empower the Central Government to prescribe Accounting Standards and Auditing Standards, recommended by ICAI, in consultation with National Financial Reporting Authority (NFRA). Currently, LLPs are required to have its accounts audited by a practicing Chartered Accountant if its annual turnover, in any financial year exceeds Rs. 40 lakhs or its contribution exceeds Rs. 25 lakhs.

 

  1. A new concept has been introduced in the LLP Act known as ‘Small Limited Liability Partnership’, subject to fewer compliances, similar to ‘Small Company’ under the Companies Act, 2013. The LLP Act defines ‘Small LLP’ to mean an LLP

 

  1. the contribution of which, does not exceed Rs. 25 lakh or such higher amount, not exceeding Rs. 5 crores, as may be prescribed; and 
  2. the turnover of which, as per the Statement of Accounts and Solvency for the immediately preceding financial year, does not exceed Rs. 40 lakh or such higher amount, not exceeding Rs. 50 crores, as may be prescribed; or 
  3. which meets such other requirements as may be prescribed, 

and fulfils such terms and conditions as may be prescribed;

No rules have been framed in this regard so far.

  1. The amendment overrides Criminal Procedure Code to give Regional Director appointed under Companies Act, 2013 power to compound offenses by collecting from a person reasonably suspected of having committed the offence, a sum which may extend to the amount of the maximum fine provided for the offence but shall not be lower than the minimum amount provided for the offence. Application for compounding shall be made to Registrar who shall forward it to the Regional Director along with his comments. 

 

  1. Further, the amendment gives Central Government the power to establish or designate Special Courts to ensure speedy trial of offenses.

 

  1. Adjudication of penalties under Section 76A.

 

  1. The MCA by notification on 11th February, 2022 made certain provisions of the Companies Act, 2013 applicable to Limited Liability Partnership by virtue of the powers conferred in it by section 67 of the LLP Act. Following are the provisions of Companies Act, 2013 that have been made applicable to LLPs with the relevant modifications:

 

  • Section 90: Register for SBO in LLP

 

  • Section 164: Disqualification for appointment of Partner

 

  • Section 165: Number of Partnerships-No person shall become Designated Partner in more than 20 LLPs.

 

  • Section 167: Vacation of Office of Partner: 

 

  • Section 206 (5): Inspection of books and papers by Central Government

 

  • Section 252: Appeal to NCLAT on Registrar notifying an LLP as struck off and dissolved under section 75.

 

  • Section 439: Offences to be non-cognizable.

 

 

 

Difference between DIR-3 KYC (E-form), DIR-3 KYC (Web Form) and Form DIR-6

 

Form DIR-6

Every Director who has been allotted a DIN on filing Form DIR-3, needs to file Form DIR-6 in the event of change of any of the particulars (except phone number and email address) mentioned in Form DIR-3 duly certified by a Practicing CA/CS/CMA. The director also needs to intimate the company within 15 days of such change.


 

Details required in DIR-3 (Any Change in this details have to be effected through Form DIR-6)
  • Name
  • Fathers Name
  • Photograph
  • Citizenship
  • Residency
  • Occupation
  • E-mail
  • Educational Qualification
  • Date Of Birth
  • PAN, Aadhar, Passport, Voter Card No, Driving License No
  • Permanent Residential Address
  • Present Residential Address
  • Phone

 

Form DIR-3 KYC (E-form)

Every individual who holds DIN on 31st March of a F.Y has to mandatorily file DIR-3 KYC (E-form) within 30th September from the end of that F.Y. Applicants need to download the file from MCA website, fill it up, get it duly certified by a Professional and then submit it by paying required fee.

 

Form DIR-3 KYC (Web Form)

Individuals who have already filed DIR-3 KYC (E-form) for any previous F.Y. has to submit this web form for the subsequent years, by logging into the MCA website on confirmation of their mobile number and email through OTP. This is a hassle free process that does not involve financial cost.

 

Key Difference between DIR-6 and DIR-3 KYC (E-form)

 

Income Tax applicability

 

In case an individual desires to update his personal mobile number or the e-mail address, as the case may be, he shall update the same by submitting Form DIR-3 KYC (E-form) only. In case of any other details, the director needs to file Form DIR-6.

 

Income Tax Act, 1961 provides for levy, administration, collection and recovery of Income Tax. It provides progressive rate schedule, exemption limits, and incorporates a number of incentive provisions. 

 

The tax laws of the country undergo changes every year by the Annual Finance Act produced by the Finance Minister in Parliament. Businesses are faced with a tax regime with greater complexities and challenges, nonetheless moving towards a globally cohesive tax world. Now, more than ever, businesses must have an ongoing system for adapting to and staying on top of these complex changes. 

 

Taxation of Limited Liability Partnerships is governed by various sections of the Income Tax Act, 1961 like all other business entities. One such important compliance is filing income tax return in Form ITR-5. 

Applicable Income Tax Return For LLP is Form ITR-5.

 

ITR 5 - Income Tax Return for LLP 

 

  • 30% Corporate Tax + 4% CESS & applicable Surcharge
  • File form ITR-5 (For LLP, firms, AOP, BOI, Artificial Juridical Persons)
  • Due date to file ITR-5 for F.Y. 2021-22 is  31st July, 2022 (when audit is not required) and 31st October, 2022 in other cases.

 

 

Documents Required

 

Incorporation Certificate

Memorandum of Association of Company

Articles of Association of Company

Bank Account Details

First Auditor Details

Any other matter that has been approved