Annual Filing for LLP
An indebtedness Partnership or LLP enjoys a separate status within the business market. Therefore, a corporation requires to take care of its active status by filing annual compliance with the Ministry of Corporate Affairs (MCA) on a daily basis. Annual filing for LLP is necessary, whether the business is operating or not. Annual compliance for LLP needs filing two separate forms, one is for Annual Return and another one is for the report of Accounts and Solvency.
The forms are submitted for reporting the business activities and financial data for every upcoming financial year. If the LLP fails to file the Annual Compliance requirements leads to an additional or penalty fee of ₹ 100 every day for the delay till the actual date of registering. Thus, aside from the authorization, the heavy penalty obliges the Designated Partners to fulfill the requirements and requirements.
Benefits of Annual Compliance of LLP
Record of Financial Worth
The forms filed by indebtedness Partnership are approachable by companies. Therefore, while entering into major projects or contracts, the authorized party may also visit or audit the financial worth. LLP annual filing submits the record of the monetary worth of the corporate and capacity to an interested individual or party.
Higher Credibility
Formal compliance may be a basic requirement for any entity or business. The status of Limited Liability Partnership annual filing is exhibited at the Master Data of the LLP on the MCA portal and the same can be obtained by any individual. Annual compliance is a major criterion to evaluate the credibility of the business entity for any loan approvals or any other same kind of requirement.
Easy conversion and closure
Annual filing is mandatory for the conversion of the LLP into the another sort of company or organization. The regular compliance reports ease the conversion process. The same employ in case of closure of an LLP firm. Even if the LLP was not working, the Registrar may demand to file the annual compliance, along with the LLP filing fee, if needed.
Maintain active status and avoid penalties
In case of back-to-back default in the annual filing, the Limited Liability Partnership can be announced as defunct or obtain default status. Also, the partners can be announced as defaulters and also can be disqualified from their further appointment in LLP or any other company. Thus, it is mandatory to file the annual return to maintain the active status of the LLP. Filing the annual returns also saves the LLP from heavy penalties and extra fees.
Procedure for LLP Tax Filing
LLPs must file an income tax return using Form ITR 5. Form ITR 5 can be filed online through the income tax website using the digital signature of the designated partner. After filing an LLP tax return, the taxpayer should print two copies of Form ITR-V.
One copy of ITR-V, signed by the assessee should be sent by ordinary post to Post Bag No. 1, Electronic City Office, Bengaluru–560100 (Karnataka). The other copy can be retained by the assessee for his record.
LLP Tax Payment
LLP tax payment can be made in physical mode through designated banks or E-payment mode. LLPs that are required to get their accounts audited are required to pay tax through e-payment mode only. To pay tax at designated banks, Challan ITNS 280 as provided below must be given the tax payment.
LLP Accounts Maintenance
All the Limited Liability Partnership are required to maintain proper account banks on a cash basis or accrual basis. As Private Limited Companies are required to maintain books of accounts only on an accrual basis.
The LLPs have the choice of maintaining the books of accounts on accounting also. The books of accounts must be maintained at the registered office of the LLP and must contain all the information like:
- Money received and spent
- Assets and liabilities
- Statement of COGS
- Inventories and finished goods statement.
At the top of every fiscal year, the LLP annual filing is required to organize their financial statements within 6 months for filing with the ROC.
Limited Liability Partnership is a mixture of partnership firm and a company.
It has the features of both company and firm.
In LLP the liabilities of the partners are limited but in partnership the liabilities of partners are unlimited.
In today's time, the LLP registration is a very popular business option between small or medium organisation and professionals, because the burden of compliances is very low.
Register Experts provide all the services which are related to the LLP registration and LLP compliances.
Our charges are very reasonable for LLP registration and compliances.
