Corporate Governance states the set of principles, processes, and systems that regulate the Com...
LLP Annual filling is a simple and easy process for giving the information of your organization to the Registrar. LLP Annual filing is due by 30-05-17 of following financial year end. For the good corporate governance and better transparency in business, the filing of annual return has made mandatory for all.
The Compliances under LLP Act. are minimal as compared to other body corporates. Every Limited Liability Partnership is required to comply the provisions related to Annual filing as prescribed under the Act.
Most of the LLP’s are confused regarding the filing of annual returns even if they are not doing business. As prescribed under the Act, every LLP in spite of doing or not doing business has to file an annual return to the registrar.In this article, we will review the required Annual Filing of LLP and consequences of non-compliances.
Every LLP has to maintain proper books of accounts on mercantile basis. The books of accounts need to be maintained at the registered office of the LLP. The accounts shall be maintained in the way which is sufficient to explain the transactions.
The Books of accounts shall contain the information of all sums of money received and expended, assets and liabilities, statement of cost of goods purchased and inventories and WIP. The books of accounts shall be maintained for the period of eight years.
In addition to above, all the LLP has to prepare a statement of accounts and solvency every financial year. The solvency statement has to be prepared in the format prescribed by the Authority within the six months of the end of the financial year.
The statement of Accounts and solvency shall be signed by the designated partners of LLP.
The accounts of the LLP whose turnover in any fiscal year exceed rupee forty (40) lakhs and contribution exceeds twenty-five (25) lakhs needs to take into their accounts audited by a Chartered accountant.
Also, partners of LLP on their discretionary in spite of turnover or contribution gets its LLP accounts audited. Further, as per income tax, the requirement of an audit of LLP accounts arise when the turnover of such LLP exceeds rupee hundred (100) Lakh.
Every LLP has to maintain and file the statement of accounts and solvency with the registrar. The same has to file in Form 8 within the period of 30 days from the end of the six months of the financial year i.e on or before the 30th October of the next financial year.