July 30, 2021 Let's Get Today Updates

Statutory compliances, that are necessary for limited liability companies (LLPs)

Starting a new business or running an existing one such as private limited, LLP, a one-person company, is not a cup of tea. It demands investments, time, energy, money, and determination. There are specific procedures that everyone has to follow, such as registrations, GST submission, and many other things.

What is a Limited Liability Partnership?

LLP (limited liability partnership) is a separate legal entity registered under the MCA (ministry of corporate affairs) and incorporated by India’s companies. First, you can opt for online LLP formation which requires a minimum of 2 persons as partners where mandatorily one has to be a citizen of India and the resident. LLP’s partners should take responsibility for upkeeping a proper book of accounts, submitting ITR, and annual returns with the MCA (ministry of corporate affairs) on every financial year.

Advantages of LLP

– In an LLP, one partner is not responsible or liable for any other partner’s negligence or misconduct.

– LLP’s partners possess the right to manage the business directly.

– An LLP offers limited liability protection for the owners of the business.

– If several partners go down then two, the sole partner can lookout for new partners to fill the position.

– After the incorporation, an LLP can have unbounded partners.

– If there is only a sole partner in the LLP, then there is time to look for a new one without the LLP winding up.

– LLP is a separate legal entity.

– LLPs possess liabilities and assets that are separate from the promoters.

– An LLP can infuse funds from banks, partners, and NBFCs.

LLPs that have been registered under the MCA (ministry of corporate affairs) require annual returns and statements of accounts on every financial year. Even though LLP has achieved profit or done business, it is compulsory for an LLP to submit its returns. There is three mandatory compliance when you possess an LLP as given below.

– Submission of annual return.

– Books of account.

– Submission of ITR (income tax returns).

Annual returns submission

In LLP, an individual is obliged to submit 2 types of MCA annual returns every financial year. These 2 forms are form-8 and form-11.

Form-11.

Form-11 includes information about annual returns. The form should consist of all partners’ complete details, along with their contribution made to the company, so forth. One should submit form-8 along with the fees, within sixty days of the financial year. LLP’s year ends on the 31st of March every year. Hence, LLPs will have to submit the LLP form-11 on or before the 30th of May each year.

Here, one will have to pay the penalty if one does not submit an LLP annual return on or before the due date.

Form-8.

Form-8 includes a statement of account and solvency. One has to submit form-8 and the fees, within thirty days from the end of 6 months of the financial year. LLPs year ends on the 31st of March every year. Two appointed partners should sign the form digitally. Additionally, it has to be certified by the CA (chartered accountant), the accountant of the business having company incorporation in India or LLP coupled with the auditor. Form-8 contains LLP’s statement of assets and liabilities and LLP’s statement of income and expenditure.

Further, there are 2 types in form-8 as given below.

– Part A – statement of solvency.

– Part B – statement of income and expenditure, statement of accounts.

One has to be a pay penalty of Rs. 100 per day, if one misses submission of the form promptly.

Submission of ITR (income tax return)

One has to submit the income tax for their LLP, whose turnover exceeds Rs. 40 lacs or whose capital exceeds Rs. 25 lacs and are obliged to get their books of account audited by the CA (chartered accountant). The deadline for submitting an LLP needed to get its readers verified and reviewed is the 30th of September. For LLPs where the tax audit’s deadline is not expected, its due date of tax submission is 31st of July.

LLPs are needed to submit form-3CEB (those LLPs who have dived into international transactions) are allowed to make their tax submission by the 30th of November. LLPs should submit their ITR (income tax return) in the form of ITR 5. This said form can be filed online via the official income tax website with the aid of a chosen partner’s digital signature. LLP tax payment can be made in via physical mode through selected banks or E-payment mode.

Books of account

All the LLPs are obliged to upkeep good books of account on an accrual basis or cash basis. Every year, before the 31st of March, the report has to be satisfactorily filed when needed. The books of account have to be furnished in the registered office when required. In the case of LLPs, whose turnover exceeds Rs. 40 lacs or capital exceeds Rs. 25 lacs; then their accounts should be audited by CA (chartered accountant).

Those LLPs who do not oblige the act’s establishment are to be subjected to punishment with a fine of minimal Rs, 25000 and a maximum up to Rs. 5 lacs. Further, a nominated partner can be punished with mulct of Rs. 10000 and of Rs. 1 lac for non-compliance.

 

Banner
Related Posts

How to get influencers interested: Instagram collaboration guide

January 28, 2021

January 28, 2021

The leadership of Instagram among the platforms for promoting business is not a prospect for the coming years, but an...

We bring you the best Software House Services-for year 2021

December 11, 2020

December 11, 2020

The year 2020 was very struggling due to many reasons out of which one being the massive hit by pandemic...

Drapes And Blinds Software – A Perfect Customized Solution For Your Business

January 28, 2021

January 28, 2021

In today’s competitive world, managing a business takes a lot of planning and strategies. To handle your blinds, Shutters, Shades...

4 of the Most Impressive Cheap Phones of 2020 Reviewed

June 10, 2020

June 10, 2020 5

If you’re like most people, you can’t live without your smartphone. People spend an average of 5.4 hours per day...

What Is the Defect Management Process? A Useful Guide

February 11, 2021

February 11, 2021

In all software production processes, faults are viewed as detrimental. In that specific software, all unforeseen things that arise in...

How do I view my Instagram likes on my pc?

July 10, 2021

July 10, 2021

You can’t access many of the features you enjoy using Instagram on a PC. If you have an iOS device or...

How a Software for Construction Business Can Improve Efficiency

January 30, 2021

January 30, 2021

Business is all about garnering profit. Every company tries to find out ways of simplifying their processes, minimize costs, and...

How To Reset Hp Printer Password?

January 28, 2021

January 28, 2021

HP is considered the top brand name that offers different types of hardware and software products. Well, these products are...

An ultimate guide on Indiabulls personal loan | 2021

January 31, 2021

January 31, 2021

When it comes to dealing with the financial contingencies, personal loans in India have always played a crucial role in...

Importance of buying TikTok views

March 11, 2021

March 11, 2021

TikTok is the leading modern and trendiest social media site. Established a few years ago, TikTok has gained surprisingly more...

Best Gaming Laptops to Play all Games

January 28, 2021

January 28, 2021

It is a dream of every gaming freak to have the ultimate gaming power and portability. A good gaming laptop...

How Shoppable Posts Enhance eCommerce Marketing & Sales

April 22, 2021

April 22, 2021

Many eCommerce businesses post attractive pictures on their social media pages because their target audience is there. The ultimate goal...

Let we make you meet-What You need –in- Mobile App Development Services

December 11, 2020

December 11, 2020

Smartphones, Smart watches along with many added facilities being implemented these days are proof that we are in continuous progress....

Needs and Features of Quikr Clone Script Development

January 28, 2021

January 28, 2021

Quikr clone app is getting famous day by day. It is a convenient product that can help clients get an...

How Does a GPS work?

February 1, 2021

February 1, 2021 1

Global Positioning System (GPS) is a worldwide radio-navigation system formed from the constellation of 24 satellites and their ground stations....

Comments
Leave a Reply

Your email address will not be published. Required fields are marked *

  • Partner links

  • error: Content is protected !!