Chartered Accountant Service in India – LLP Filing

A Limited Liability Partnership (LLP) entails relatively minimal compliance obligations each year, making it notably lighter in comparison to the requirements for a private limited company. However, the penalties for non-compliance with LLP regulations can be considerably substantial, sometimes reaching up to five times the penalties applicable to private limited companies.

In contrast to companies, LLPs in India are obligated to file their Annual Return within 60 days from the close of the financial year and the Statement of Account & Solvency within 30 days from the end of six months after the financial year's close. At MyDBiz, we offer a comprehensive LLP compliance service encompassing LLP Annual Return Filing and LLP Income Tax Return filing at a highly competitive rate.

Bookkeeping for an LLP differs from that of companies. While companies must maintain their books of accounts on an accrual basis, LLPs have the flexibility to opt for cash or accrual basis. These books must be kept at the LLP's Registered Office and should include details of all financial transactions, assets, liabilities, Cost of Goods Sold (COGS), inventories, and finished goods statements. LLPs are required to prepare their financial statements annually and submit them to the Registrar of Companies (ROC) within six months.

LLPs registered under the Limited Liability Act, 2008, are mandated to file two forms annually: Form 11 and Form 8. The Annual Return (Form 11) must be filed within 60 days from the financial year's closure, while the Statement of Account and Solvency (Form 8) should be submitted within 30 days from six months after the financial year ends.

Regarding tax matters, LLPs in India must undergo a tax audit conducted by a practicing Chartered Accountant if their annual turnover exceeds INR 40 lakhs or their contribution exceeds INR 25 lakhs. To be exempt from the audit requirement, LLPs' accounts filed with the ROC must include a statement by the Partners acknowledging their responsibilities for adhering to accounting requirements and financial statement preparation.

LLPs are required to file their income tax returns using Form ITR 5. The deadline for LLP income tax filing in India is July 31st if no tax audit is necessary. However, if an audit is conducted by a practicing Chartered Accountant, the deadline for LLP income tax filing is September 30th.

NOTE: Statutory Auditor’s professional fee is payable on actuals directly to the Independent Auditor appointed by the designated partners. We are not responsible for accounting, preparation of financial statements and filing of returns on behalf of the LLP.

MyDBiz is the market leader in LLP registrations and compliance services in India. Before we get started with the engagement, all the required information and documents are collected. An engagement manager would be assigned who will be the point of contact till the engagement is completed. The average time required to complete a LLP annual compliance is 12-15 working days depending on the government processing time and client document submission.

For more information, feel free to contact us at info@mydbiz.com or call us at +91 9632 993 993.