Maintaining compliance for a Limited Liability Partnership (LLP) is crucial to avoid significant penalties. While LLPs have a lighter compliance load than private limited companies, the fines for non-compliance can be hefty, reaching up to INR 5 lakh.
Key Compliance Requirements for LLPs:
1. Proper Bookkeeping
– Maintain accurate financial records, including transactions, profits, expenses, assets, and liabilities.
2. Filing Annual Return (Form 11)
– Deadline: May 30th every year.
– Penalty: INR 100 per day of delay.
– Details Required: Information about designated partners, contributions, and partner details.
3. Filing Statement of Accounts (Form 8)
– Deadline: October 30th.
– Penalty: INR 100 per day of delay.
– Components: Solvency statement and a detailed account of income and expenditure.
– Certification: Requires digital signatures from two designated partners and certification by a company secretary, chartered accountant, or cost accountant.
Audit and Tax Filing Requirements
1. Tax Audit
– Criteria: Mandatory for LLPs with turnover over INR 1 Crore.
– Deadline: September 30th.
– Increased Threshold: Turnover threshold raised to INR 10 crore if cash transactions are less than 5%.
2. Income Tax Return (ITR-5)
– Deadline: July 31st (non-audited), September 30th (audited).
– Form 3CEB: Required for international or specified domestic transactions.
– Deadline: November 30th.
Key Benefits of Proper Compliance:
Regulatory Adherence: Ensures adherence to all regulatory requirements, minimizing risks of non-compliance.
Financial Health Monitoring: Regular financial reporting provides insights into the financial health of your LLP, helping in making informed business decisions.
Builds Trust: Regular compliance enhances the trustworthiness of your LLP among clients, partners, and financial institutions.
Competitive Edge: A compliant LLP stands out in the market, attracting better business deals and partnerships.
Why Choose AK Consulting?
At AK Consulting, we streamline the compliance process for LLPs. Our services include:
– Expert guidance and accurate document preparation.
– Assistance with digital signatures and professional certification.
– Timely filing to avoid penalties.
Focus on growing your business while we handle your compliance needs. Start now with AK Consulting to ensure your LLP stays compliant and penalty-free.
