The requirements of annual compliance of an LLP are specified under the Limited Liability Partnership Act 2008.
Given below are the important annual compliances in case of an LLP:
Preparation of financial accounts
Preparation of financial accounts
All LLPs registered under LLP Act 2008 are required to prepare a Statement of Account and Solvency, through the filling of Form 8.
Annual return
As per Section 35 of LLP Act, every LLP has to file the annual return within 60 days of closure of the financial year. This is prepared by filling of Form 11.
Statutory Audit by an Independent Auditor
Statutory Audit is mandatory for LLP only if its annual turnover exceeds INR 40 lakh and/or its total paid-up capital exceeds INR 25 lakh.
Income Tax Return Filing & Tax Audit
According to the Income Tax Act, the filing of Income Tax Return is mandatory for an LLP. If the annual turnover of an LLP exceeds INR 60 Lakhs, it will be applicable for a tax audit.
LLP book of accounts includes Statement of Accounts and Solvency. The Statement of Account and Solvency is prepared through the filling of Form 8.
This includes preparing general-purpose financial statements; which includes the balance sheet, income statement, statement of Profit & Loss, and statement of cash flows.
Statutory audits performed by qualified auditors are conducted in order to report the state of finances and accounts of an LLP to the Indian government.
LLPs incorporated under LLP Act 2008 need to E-File the LLP Form 8 and LLP Form 11 for financial statements with the Registrar of Companies (ROC).
LLPs that are applicable for tax audit are required to file income tax returns each year on or before 30th September. Others have to file till 31st July.
Every LLP incorporated under the LLP Act, 2008 are required maintain certain records about the company in the form of statutory registers.