Benefits of LLP annual filing

The benefits of LLP annual compliance are listed as follows:

• Higher Credibility :
  • Meeting the annual compliances of LLP enhances the organization’s credibility, aiding in loan approvals and helping with various requirements.
• Record of Financial Worth :
  • These filings create a financial track record for LLPs, attracting potential investors and partners.
• Stays Active and Penalty-Free :
  • Consistent compliance keeps LLPs from being declared defunct, preventing penalties and additional fees.
• Conversion and Closure :
  • Regular filings simplify the process of converting LLPs into other business structures and expedite partnership dissolution.

Income Tax Return (ITR – 5)

LLPs are also required to file their income tax return using Form ITR-5. The due date for ITR filing is July 31st unless the LLP is subject to a audit, in which case the deadline is extended to October 31st. The income tax return provides details of the LLP’s income, expenses, and tax liability.

Form type	Description	Date	To be filed with
Form-8	Filing of Statement of Accounts	30th October	Registrar of Companies
Form 11	Filing of Annual Returns	30th May	Registrar of Companies
ITR – 5	Income Tax Return	31st July (or 31st october, if audit is mandatory)	Income Tax Department
Audit report	(if applicable)	30th September	Income Tax Department

Filing Annual Return

Annual Returns are to be filed in the prescribed Form-11. This form is considered as the summary of management affairs of LLP, like numbers of partners along with their names.

Filing Deadline :

• All LLPs are required to submit Form 11 within 60 days after the conclusion of the financial year. This means that Form 11 should be filed by May 30th each year.

Importance of Timely Filing :

• It’s crucial for LLPs to adhere to this deadline, as failure to do so can have consequences. One significant implication is that an LLP will not be permitted to close or wind up its operations until it has filed all its annual returns, including Form 11.

Penalty for Late Filing :

• In the event that an LLP neglects to submit its LLP annual filing forms within the stipulated timeframe, it will incur a penalty of Rs.100 for each day of delay performed.

Duration of Penalty :

• The penalty will be applicable from the due date of filing the return and will continue until the actual return is filed.

Frequently Asked Questions

• Is it mandatory for every company to file annual returns?
  

  Yes, every company, including Private Limited Companies and Public Limited Companies, must file annual returns. One Person Companies (OPCs) also need to file their annual returns.

• Can a company file its annual returns online?

  Yes, all annual filings can be done online through the MCA (Ministry of Corporate Affairs) portal by submitting the appropriate forms and paying the applicable fees.

• Can the company file its annual returns after the due date?

  Yes, but the company will be required to pay late fees for every day it delays the filing. This could also lead to penalties or further legal action.

• What is form AOC 4 and MGT 7?

  Form AOC-4 encompasses financial statements, including the Balance Sheet, Profit and Loss Account, Cash Flow Statement, Directors’ Report, and Auditor’s Report. Form MGT-7 includes crucial information about the company’s share capital, indebtedness, and details of shareholders, directors, and meetings.

• What is the DPT 3 form?

  DPT-3 is a return of deposits that companies must file to furnish information about deposits and/or outstanding receipt of loan or money other than deposits.

• What is the due date for DPT 3?

  The due date for filing Form DPT 3 is June 30th of every year