LLP Annual Return – Form-11
LLP Annual Return – Form-11
Limited Liability Partnership (LLP) is a popular business structure in India that combines the benefits of a partnership and a company. It provides partners with limited liability while allowing them to participate in business management actively. Annual Return Filing is a vital regulatory obligation imposed on Limited Liability Partnerships (LLPs) registered in India. As per the LLP Act of 2008, LLPs are required to submit their Annual Return annually. Annual Return filing is of paramount importance for LLPs. This present article aims to provide a comprehensive guide on the process of LLP Annual Return, highlighting its importance for LLPs.
LLP Annual Return
The Limited Liability Partnership annual return is a crucial filing requirement that must be fulfilled yearly to maintain compliance and avoid penalties. The LLP Annual Return needs to be electronically filed and recorded with the Ministry of Corporate Affairs. Ensuring the accuracy of all the information provided in the form is imperative, as there is no provision for resubmission.
Regardless of business activity or management changes, LLPs must submit their Annual Returns and Financial Statements to the Ministry of Corporate Affairs (MCA).
- LLP Form 11, known as the LLP Annual Return, summarizes any changes made in the management (Designated Partners) during the financial Year.
- Filing a NIL return is mandatory under the Limited Liability Partnership Act, even if the LLP has conducted no changes or business activities.
- This requirement ensures compliance with the law and provides updated and accurate information to the MCA, even for LLPs without business activities.
- Submitting the LLP Form 11 Annual Return is a legal obligation for LLPs in India, irrespective of their business status or management changes.
It is essential to note that the filing of LLP annual return will not be permitted if there are any pending eForm four submissions (Notice of appointment, cessation, and change in designation of a designated partner or partner) with unpaid fees or if any eForm four is currently being processed by the MCA. Therefore, filing any necessary eForm four well before the LLP Annual Return’s due date is advisable.
Importance of Annual Return Filing
Annual Return filing for LLPs is essential because:
- It ensures compliance with regulations and legal obligations
- It promotes transparency by providing accurate information to stakeholders
- It holds the LLP accountable for its actions and financial details
- It builds trust and confidence among investors, partners, and clients
- Non-compliance can lead to penalties and legal consequences
- It helps maintain organized records for future reference
- It ensures business continuity and avoids disruptions
Overall, Annual Return filing is crucial for LLPs to meet legal requirements, maintain transparency, and instill trust in their stakeholders.
Forms for LLP Annual Filing
Every LLP (Limited Liability Partnership) needs to prepare and submit its Annual ROC Forms to the Registrar of Companies. Every Year, an LLP is required to file two ROC Forms, namely:
- Form LLP 11: Form LLP 11 is an Annual Return of an LLP that needs to be filed within 60 days from the end of a Financial Year.
- Form LLP 8: LLP Form 8 is a Statement of Account & Solvency within 30 days, counting from the end of six months of the closing of a financial year.
|1.||Statement of Account & Solvency||Form 8|
|2.||Annual Return||Form 11|
For every Limited Liability Partnership, it is essential to comply with the statutory requirements such as Annual Return, Income Tax Return, Profit and Loss Account, and Balance Sheet every Year, even if it does not do any business. Like Companies, Limited Liability Partnerships (LLPs) must maintain their financial Year from April 1 to March 31.
Information & Document Required to File LLP Form 11
To successfully file LLP Form 11 Annual Return, the following information, and documents are required:
- LLP Identification Number
- Name of the LLP
- Registered office address of the LLP
- Business Classification of the LLP (Business, Profession, Service, Occupation, Others)
- Particulars of compounding offenses, if any
- Details of Partners of the LLP
- Total obligation of the contribution of partners of the LLP
- Total contribution received by all partners of the LLP
- Summary of Designated Partners and Partners
- Principal business activities of the LLP
Particulars of penalties imposed on the LLP
Details of LLP and company in which Partner or Designated Partner are a Director/Partner (mandatory to attach if any Partner or Designated Partner is a partner in any LLP and/or Director in any company)
It is crucial to ensure the accuracy of the information provided in the LLP Form 11 Annual Return, as it cannot be resubmitted once filed. Additionally, the total contribution received by all partners of the LLP mentioned in the Annual Return must match the information in the LLP Form 8 Statement of Accounts & Solvency, which needs to be filed before October 30.
LLP Annual Return – Form 11 Due Date
The due date for filing LLP Form 11, the Annual Return of a Limited Liability Partnership (LLP), is within 60 days of the financial year-end.
As the Financial Year for all LLPs in India closes on March 31, the LLP Annual Return Form 11 is due on May 31 of each Year.
LLP Form 11 Late Filing Penalty
If the LLP Form 11 Annual Return is not filed by May 31, a penalty of Rs.100 per day will be levied until the non-compliance is rectified. It is important to note that there is no cap on the penalty amount, meaning that it will continue to increase for each day of delay.
Pre-filling Requirements for MCA LLP Form 11
The following requirements must be met to facilitate the pre-filling of MCA LLP Form 11:
- LLPIN (Limited Liability Partnership Identification number): The LLPIN assigned to the LLP must pre-fill the essential data in the form.
- Declaration of Contribution: It is essential to provide the declaration of the contribution or sums obtained by all the partners of the LLP. This information will be used for pre-filling purposes.
- Completion of e-Form 4 Requirements: If applicable, ensure that the payment of fees related to e-Form 4 (Notice of appointment, cessation, and revision in the designation of a designated partner or partner) has been made and the processing of e-Form four has been completed.
- Digital Signature Certificate (DSC) of Designated Partner: Have the DSC of your Designated Partner ready for the submission of the form.
By meeting these requirements, you can streamline the pre-filling process for MCA LLP Form 11 and ensure accurate and efficient filing.
Procedure for Filing LLP eForm 11
The Designated partner (DP) can upload the e-Forms on the LLP portal (after registering as a portal user).
Download LLP Form 11
You can download LLP Form 11 and the LLP help files from the following links:
- Fill in the details in the downloaded eForm. The information in the form should be as of March 31 of the Year for which the statement is being filed.
- Enter the Limited Liability Partnership identification number (LLPIN) of the LLP and click on the Pre-Fill button.
- The system will automatically display the name, address of the registered office, email ID, and other addresses if declared under section 13(2). Enter the new valid email ID if there is any change in the email ID.
- Select the business classification of the LLP from the drop-down list. The system will automatically display the principal business activities based on LLPIN.
- The system will also display ‘the total number of designated partners, partners, and total obligation of the contribution of partners of the LLP.
- Enter the amount of ‘contribution received by all partners of LLP. This amount should be the same as the contribution entered in eForm 8 (Statement of account and solvency) regarding the corresponding financial Year.
- Provide the total number of designated partners (DP) and partners as of March 31 of the Financial Year for which the return is being filed.
- Once the details are updated on the LLP portal, the system shall generate a service request number (SRN), which shall have to be mentioned when filing this form.
Please provide details of penalties imposed on the LLP and its partners and designated partners. Provide the details of offenses compounded by the LLP.
Click the Attach button to upload the document. If you wish to attach any other document, click the Optional Attachment button.
The signing of LLP Form 11
As mentioned above, The LLP Form 11 must be signed with the Digital Signatures of two designated partners. In case the total obligation of the contribution of partners of the LLP exceeds Rs. Fifty lakhs or turnover of LLP exceeds Rs. 5 Crores, then LLP Form 11 needs to be certified by a Company Secretary in whole-time practice.
In case the total obligation of the contribution of partners of the LLP does not exceed Rs. Fifty lakhs and the turnover of the LLP does not exceed Rs. 5 Crores, then LLP Form 11 must be certified by the designated partner of the LLP.
In case the total obligation of the contribution of partners of the LLP exceeds Rs. Fifty lakhs or turnover of LLP exceeds Rs. 5 Crores; then the eForm needs to be certified by a Company Secretary in whole-time practice. Enter the certificate of practice number and select whether he/ she is an associate or a fellow.
In case the total obligation of the contribution of partners of the LLP does not exceed Rs. Fifty lakhs and the turnover of LLP does not exceed Rs. 5 Crores; then, the eForm needs to be certified by the designated partner of the LLP. Enter the DPIN of the DP.
Pre-scrutiny the eForm
After the check eForm is successful and the required documents have been attached, pre-scrutinize the eForm.
- Digitally sign and submit the Form.
- Once the form is pre-scrutinized, filled, and signed, it is ready for uploading on the LLP portal. Login to the LLP portal with your user ID and password for uploading the eForm.
Easily File Your LLP Annual Return with IndiaFilings
IndiaFilings can help you prepare and file LLP Annual Return for your LLP at just Rs. 4899. The cost includes bookkeeping, financial statement preparation, LLP Form 11 filing, LLP Form 8 filing, and income tax return filing for LLP in ITR-6 Form. For more information, visit IndiaFilings LLP Annual Return Filing or email [email protected].
MCA Latest Update – LLP
New Feature: Download and Upload Excel Files for Form 11 LLP
Form 11 LLP now introduces a new feature that allows users to download and upload Excel files, simplifying the filing process. The Excel file automatically populates with existing data of the Partners and Designated Partners, saving time and effort.
Relaxation of Additional Fee: Circular 07/2022
The Ministry of Corporate Affairs has issued Circular 07/2022, granting relaxation of additional fees for filing LLP Form 11. LLPs can avail of this relaxation until July 15, 2022.
Waiver of Late Fees: Circular 4/2022
In Circular 4/2022, the MCA announced the waiver of late fees for filing LLP Form 11 until June 30. This allows LLPs to fulfill their filing requirements without incurring additional penalties.