Know more about – Online LLP Compliances Process
LLP registration in India
Limited liability partnership is introduced in India in the year 2008 as per newly embedded LLP act with the motive of enabling the business owners to form a simple business entity. The business entity formed as per LLP firm compliances is easy to maintain and has minimum liability for owners. The business owners in India well receive it due to many advantages like getting a separate legal entity for the company, liability limited to the contribution made by the company, affordable costs, and, most important is less compliance and regulations. The article here throws limelight on the online LLP firm compliances.
LLP firm compliance process online
Books of accounts
After you have registered your business under the LLP registration act, you need to maintain regular basic accounting for your firm as a part of online LLP firm compliance. Your company needs to fill data related to profits made by the business along with the other financial data and submit it through form 8 annually. The books of accounts should maintain a double-entry system of accounting. Don't use plagiarised sources.Get your custom essay just from $11/page
Form 8 you submit as a part of limited liability partnership compliance online India should be duly signed by the partners and certified charted accountant. If the turnover of the LLP company is above 40 lakhs or investment in the company is above 25 lakhs, the charted accountant should audit the bookkeeping accounting. If any LLP registered company does not abide by LLP firm compliance, you are liable to a punishable penalty not less than 25,000 and a maximum cap of 500,000. Also, the designated partner is fined with a penalty of 10,000 to 100,000 for noncompliance with the regulations.
Annual return compliance
Limited liability partnership companies enjoy a separate entity, so it is required to maintain regular filing through annual compliance for LLP. It requires to fill two forms for each financial year. One is form 8, and the other is form 11.
Form 8
Filing form 8 as a part of annual compliance for LLP should be filed within the 30 days of after six months in a year and should be digitally signed by the partners and certified with the charted accountant. This form 8 includes two parts one is a statement of solvency, and two is the statement of accounts and income and expenditure.
Form11
Form 11 filed as a part of annual regulatory LLP compliance contains details of the partners, the contribution made by the partners, and all the details of body corporate as partners and their details. Every LLP registered company should file form 11 within 60 days of closure of the financial year along with the required fee. The due date for filing form 11 is 30th May every year. One cannot wind up the LLP registered company unless the returns are filed. You should always file the returns before the due date to avoid penalties.
Income tax filing
As a registered LLP company in India, one should file income tax returns every year. These returns should be filed whether your business runs on profits and losses. Even if the LLP registered company has not conducted any transaction in the stated financial year.
Documents to maintenance
Maintenance of documents is also a vital part of mandatory compliances for LLP. The documents should include partner names, update about the changes, if any, proof of payment made along with a statement of solvency, and annual returns filed for your business. These documentary records should be made available anytime when the need for the inspection raises on the request of concerned authorities.