A Limited Liability Partnership (LLP) has just a couple of compliance requirements each year. This is extremely low, as compared to the several requirements placed on a private limited company. However, the fines are also larger.
In this article we will try to include all the mandatory compliance that are to be made by every LLP immediately after incorporation and yearly onward.
GENERAL POST INCORPORATION COMPLIANCE
1. Filing LLP Agreement:
Every LLP has to file E Form-3 Filing of LLP agreement within 30 days from date of incorporaon of LLP.
2. Letter Heads:
Leer heads of LLP with registered office name & address, LL-PIN, Email-ID, Telephone, website (if any), fax etc., shall be printed.
3. PAN/ TAN:
The first requirement after the incorporation of LLP is applying for a Permanent Account Number (PAN)/ Tax Deduction Account Number(TAN).
4. Bank Account:
After obtaining PAN, the LLP shall open a Current Account with a bank and Designated Partners shall contribute the subscription money to the said account.
5. Service Tax/ VAT:
All the statutory registrations like Service Tax, VAT etc. may be applied for depending on the type of LLP.
6. Provident Fund:
A LLP employing more than 20 employees is liable to deduct PF contribution @ 12% of basic salary & ESIC @ 4.75% of salary(As per the latest notification, ESIC has raised the threshold wage limit from 15,000 to 21,000).
1. Filing of Annual Return
Every LLP has to file Annual Return with the Registrar of LLP in E Form-11 within 60 days of closure of its financial year. An LLP has to close its financial year on every 31st March. So, the Annual Return is to be filed on or before 30th May every year. This form is a summary of the management affairs of the LLP, such as number of partners and their names.
2. Filling of Annual Accounts –Statement of Accounts & Solvency:
Every LLP has to file Annual Accounts to Registrar of LLP in E Form-8 within 30 days from the end of 6 months of such financial year. So, the filing of Accounts is to be filed on or before 30th October every year. In case of an LLP whose annual turnover exceeds Rs.40 lakhs or whose contribution exceeds Rs.25 lakhs, shall be required to get its accounts audited by a qualified Chartered Accountant.
If a LLP fails to file Annual Return or Annual Accounts within deadline will lead to fine of Rs.100 per day. There is no maximum limit on fine imposed by registrar on LLP on late filing of documents like Private Limited Company.