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Annual Return Filing for LLP: A Complete Overview

Annual Return Filing for an LLP A Complete Overview

The Annual Return Filing for an LLP is a simple documentation process that provides details regarding the company functioning to the outside people. This also helps keep the company in check with the government. An overview has been provided for the meaning, filing, process, information and penalties involved in the procedure. In the present blog we will read about Annual Return Filing for an LLP in detail.  

What Do You Mean By Annual Return Filing?

An annual return is the documentation of the company data during a year. Every company formed needs to return to the registrar of companies by registering with the Ministry of Corporate Affairs with all its activities for every year which completes with every financial year. This filing is done so as to keep the company in check and allow the public to have knowledge about the company. Section 92 of the Companies Act and section35 of the Limited Liability Partnership Acthas mentioned the statutory provision for an annual return filing of a company in general and a limited liability partnership, respectively.

What do you mean by an LLP?

An Limited Liability Partnership is a category of companies formed under the Companies Act known as a Limited Liability Partnership Company. The main feature of such a company is the limited liability shared by the company shareholders and directors. Liabilities occurring under such a company holds a person liable only to the extent of their involvement and not vicariously.

What is Annual Return Filing for an LLP?

Section 35 of the Limited Liability Partnership Act also provides for the annual return for an LLP. According to the provision, it is the duty of every limited liability partnership to file an annual return with the registrar within sixty days from the closing of the financial year.

Filing of Annual Return

The filing of the Annual Return for an LLP depends on the end of the financial year. According to the Companies Act, the annual returns are to be filed within sixty days from the date of the end of the financial year. Since the financial year is considered to be ending on the 31st of March, the Annual Return Filing for an LLP is to be done before the 31st of May yearly.

These annual returns of a company are to be duly signed by the company secretary or the director of the company as required. The Annual Filing for an LLP is done through LLP Form 11 to the MCA. The LLP Form 11 is electronically filed with the MCA. The only case filing is not allowed is when a process is pending related to the company with the MCA.

Information Gathered From an Annual Return

The Companies Act regulates the annual returns of a company and mentions the information that is required to be mentioned in the filing. The information which can be gathered from an annual filing are-

  1. Details regarding the registered office and associate companies along with details regarding the business activities and its holdings.
  2. Details regarding all its members and the debenture holders.
  3. Details regarding the promoters and directors of the company along with the details about the key managerial personnel of the company.
  4. Details regarding the meetings conducted by the members, the board and its committees and all related activities.
  5. Details regarding the remuneration of directors and key managerial personnel.
  6. Details regarding offences or penalties imposed on the company, its directors or its personnel and all related details thereto.
  7. Details regarding compliances, disclosures or other certifications prescribed.
  8. Details regarding the distribution of shares and their redistributions.
  9. Details regarding all changes taken place and all other matters that are prescribed and considered of significance.

Process of Annual Return Filing for an LLP

The process of Annual Return Filing for an LLP is as follows-

  1. Visit the MCA portal[1].
  2. Enter the LLPIN of the LLP.
  3. Provide details requested regarding the LLP.
  4. Provide details about the penalties and offences compounded by the LLP.
  5. Provide the requested attachments.
  6. Provide the digital signatures of the partners.
  7. Certification by a company secretary.
  8. The whole process concludes with the pre-scrutiny of the e-form.

Penalty Surrounding Annual Return Filing for an LLP

Subsection (5) of the provision under the Companies Act, also mentions a penalty in case of failure of the annual return filing by the company. According to the section, a company failing to file its annual returns as mentioned in the act is liable to punishment.

Sub-section (5) of the provision mentions a penalty of ten thousand rupees. For a continuing offence, the penalty is rupees hundred each day of its continuance. This continuing penalty can be extended to a maximum of two lakh rupees in case of a company and up to fifty thousand rupees in case of default by an officer.

A penalty is also imposed in case the returns filed are not in conformity with the actual activities of the company and the provisions of the act. A company secretary certifying such returns is liable to a penalty of two lakh rupees. Provision under the Limited Liability Partnership Act, mentions a penalty of fine not less than twenty-five thousand rupees which can further extend up to five lakh rupees. An LLP in contravention of the provisions of the LLP Act, the partners of such an LLP are liable for a fine of ten thousand rupees extending up to one lakh rupees.

Conclusion

Filing of annual returns is a mandate for all types of companies be it an LLP or a partnership company registered under the Companies Act. The Annual Return Filing for an LLP helps the registrar or government to keep a check on the company and advance knowledge to the public. It also helps attract investors with the filings being in public view. The above article briefs an overview of the Annual Return Filing for an LLP. It mentions the statutory link and the dos and don’ts in an Annual Return Filing for an LLP. For further information regarding the topic, one can contact Bizadvisors.

Read our article:All You Need To Know Before Starting an LLP

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