Form 11 – Annual Return Filing for Limited Liability Company

Last Updated at: August 25, 2020
2386
Latest Update

 

Due date of Form 11 for the financial year 2019-2020 has been extended up to 30th September 2020. This is with reference to General Circular No. 13/2020 dated 30.03.2020 w.r.t LLP Modified Settlement Scheme, 2020 which states that any LLP is eligible to file documents which were due for filing till 31st August 2020 without any penalty.

Form 11 – Annual Return Filing for Limited Liability Company
The Ministry of Corporate Affairs has recommended that such compounding offences, which include serious, administrative or technological breaches, should be decriminalized under the Limited Liability Partnership (LLP) Act

 

The Ministry of Corporate Affairs (MCA) has launched 2 schemes to help law-abiding companies and LLPs. These schemes offer an opportunity for these companies to make a fresh start and clear their compliance defaults without any peanlty. This is an initiative from the MCA to incentivise compliance and reduce the compliance burden of companies. Both these schemes can be availed during the moratorium period from 1 st April to 30 th September 2020.

 

Here we get into complete details and know-how related to Form 11 and Income tax filing guide. It will give you answers to all your questions and related information.

LLP Form 11 – Annual Return

LLP Protocol 11 is the Limited Liability Partnership (LLP) Annual Return. Each year the arrival must be e-recorded with the Ministry of Corporate Affairs to maintain consistency and keep away from penalty. Annual return for LLP must be electronically registered and reported. Make sure that all data reported in the form are accurate, as there is no provision for the annual return of the LLP Form 11 to be resubmitted.

What is Form 11 And How to record it?

Protocol 11 is an annual return which will be reported over the year by all LLPs irrespective of income. Unintendedly, when an LLP does not complete any given task or business during the financial year, it is recommended to document Form 11.

Income tax filing guide includes basic data about Name, LLP address, Partners / Designated Partners, various finer details to be reported are:

  • Commitment by/to the LLP’s accomplices
  • Small details of notice of forced/intensified fines incurred during the monetary year

On the MCA entry, it must be e-recorded. One must download and fill the e-structure in a disconnected mode. To restrict your efforts, the pre-fill option is accessible and the pre-investigation catch is available to accept the filled-in material. This is done before you apply the form on the web.

LLP Form 11 Last Date

LLP Form 11 is expected to expire within 60 days of the end of the budget year. Provided that all LLPs have 31st March as the monetary year’s conclusion, LLP Annual Return Form 11 is expected on May 31st of each year.

Register Your LLP Now

LLP Form 11 Late Filing Penalty

In the off chance that LLP Form 11 Annual Return may not be reported before the due date of May 31, a fine of Rs.100 will be applied at that point every day until the brashness persists. Since the penalty has no end, the total will increase after a while. So, to stay away from overwhelming punishment, it is necessary to follow the Income-Tax filing guides and records on time.

What are the essentials?

  • The LLPIN (Limited Liability Partnership Identification Number) assigned to the LLP is required to pre-fill the basic details.
  • Statement of commitment/entities earned by each of the LLP’s accomplices
  • The installation of charges as for e-Form 4 (Notice of arrangement, termination, and modification of assignment of an appointed accomplice or accomplice) and handling of restructure 4 should be completed (if applicable).
  • Be prepared with your Designated Partner’s DSC.

Data and Document Required to File LLP Form 11

The Income-Tax filing guide includes accompanying data and archives needed to record LLP Annual Returns:

  1. Identification number for LLP
  2. The LLP name
  3. LLP office address enlisted
  4. Business classification under LLP (Company, Profession, Product, Occupancy, Others)
  5. LLPs Head Business Exercises
  6. The Subtleties of Designated LLP Partners
  7. The LLP ‘s full commitment of its accomplices
  8. Absolute commitment from all of the LLP’s accomplices
  9. The List of Assigned Partners
  10. Punishment points of interest forced upon the LLP, presuming any
  11. Points of interest to exacerbate offences, if there are any
  12. Subtleties of the LLP and, besides, an organization in which the Partner / Designated Partner is a Director / Partner (It is mandatory to enter this information on the off chance that any Partner may be an accomplice in an LLP and also a Director in any organization)

It is important to remember that this can not be resubmitted until the LLP Annual Return is recorded. Furthermore, the all-out agreement received by all LLP partners referenced in LLP Form 11 Annual Return will meet LLP Form 8 Account and Solvency Statement to be reported by October 30th at the latest.

Significant Aspects to note while recording Annual return for LLP

A portion of the important pointers to be noted by all LLPs when reporting the 5-page Form 11 are as follows:

  • Using the catch accessible on the Form for pre-examination can assist to approve the data submitted. This will help manage the blunder-free details.
  • Any place figures are revealed in the systems, they have to be entered as they remain on March 31, 2020, excluding in the case of the ‘turnover’ that will stop on March 31, 2020, for one year.
  • LLP nuances and, also, an organization where the accomplices are chiefs/collaborators.
  • The e-structure mandatorily requires approval from a rehearsing company secretary if the following requirements are met:
    • All of the Partners’ investment is more than Rs. 50 lakhs OR
    • LLP turnover crosses Rs. 5 crores.

LLP Annual Compliance Overview

  • For registration in the LLP, two people should be registered as partners at the most when one is a citizen and a resident in India. The partners in an LLP should bear the responsibility to maintain the proper accounting record, to file a return on income taxes and to produce an annual report on every financial year with the Ministry of Corporate Affairs (MCA). The partners in an LLP should bear the responsibility to maintain the proper accounting record, to file a return on income taxes and to produce an annual report on every financial year with the MCA.
  • The reports should be annually submitted for preserving continuity to create an LLP and significant fines for non-compliance should be excluded under the statute. A Limited Liability Company need not meet any annual enforcement. The annual enforcement is less than that expected for private limited partnerships. However, failing to comply may only impose penalties of Rs.1 lakh for a private limited. Whereas, a fine of  Rs.5 lakh for LLP may get imposed.
  • The chosen members also must retain jointly an acceptable record, as well as to send an annual report in conformity with MCA, quarterly. LLPs shall be established by a different legal body. An LLP is not necessary to audit the record books except when
    • the total revenue is more than Rs.40 lakhs or
    • when the company’s profit or expenditure is more than Rs.25 lakh.

In fact, an LLP need not audit its account books if it meets the above conditions.

  • LLPs must file an account and solvency statement within thirty days of the end of the six month period. They must also file an annual return within sixty days of the year-end. 

Conclusion

We hope this thorough information related to Form 11 answers all your questions and if you have more, you know we are just a click away at www.vakilsearch.com.

 

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Form 11 – Annual Return Filing for Limited Liability Company

2386
The Ministry of Corporate Affairs has recommended that such compounding offences, which include serious, administrative or technological breaches, should be decriminalized under the Limited Liability Partnership (LLP) Act

 

The Ministry of Corporate Affairs (MCA) has launched 2 schemes to help law-abiding companies and LLPs. These schemes offer an opportunity for these companies to make a fresh start and clear their compliance defaults without any peanlty. This is an initiative from the MCA to incentivise compliance and reduce the compliance burden of companies. Both these schemes can be availed during the moratorium period from 1 st April to 30 th September 2020.

 

Here we get into complete details and know-how related to Form 11 and Income tax filing guide. It will give you answers to all your questions and related information.

LLP Form 11 – Annual Return

LLP Protocol 11 is the Limited Liability Partnership (LLP) Annual Return. Each year the arrival must be e-recorded with the Ministry of Corporate Affairs to maintain consistency and keep away from penalty. Annual return for LLP must be electronically registered and reported. Make sure that all data reported in the form are accurate, as there is no provision for the annual return of the LLP Form 11 to be resubmitted.

What is Form 11 And How to record it?

Protocol 11 is an annual return which will be reported over the year by all LLPs irrespective of income. Unintendedly, when an LLP does not complete any given task or business during the financial year, it is recommended to document Form 11.

Income tax filing guide includes basic data about Name, LLP address, Partners / Designated Partners, various finer details to be reported are:

  • Commitment by/to the LLP’s accomplices
  • Small details of notice of forced/intensified fines incurred during the monetary year

On the MCA entry, it must be e-recorded. One must download and fill the e-structure in a disconnected mode. To restrict your efforts, the pre-fill option is accessible and the pre-investigation catch is available to accept the filled-in material. This is done before you apply the form on the web.

LLP Form 11 Last Date

LLP Form 11 is expected to expire within 60 days of the end of the budget year. Provided that all LLPs have 31st March as the monetary year’s conclusion, LLP Annual Return Form 11 is expected on May 31st of each year.

Register Your LLP Now

LLP Form 11 Late Filing Penalty

In the off chance that LLP Form 11 Annual Return may not be reported before the due date of May 31, a fine of Rs.100 will be applied at that point every day until the brashness persists. Since the penalty has no end, the total will increase after a while. So, to stay away from overwhelming punishment, it is necessary to follow the Income-Tax filing guides and records on time.

What are the essentials?

  • The LLPIN (Limited Liability Partnership Identification Number) assigned to the LLP is required to pre-fill the basic details.
  • Statement of commitment/entities earned by each of the LLP’s accomplices
  • The installation of charges as for e-Form 4 (Notice of arrangement, termination, and modification of assignment of an appointed accomplice or accomplice) and handling of restructure 4 should be completed (if applicable).
  • Be prepared with your Designated Partner’s DSC.

Data and Document Required to File LLP Form 11

The Income-Tax filing guide includes accompanying data and archives needed to record LLP Annual Returns:

  1. Identification number for LLP
  2. The LLP name
  3. LLP office address enlisted
  4. Business classification under LLP (Company, Profession, Product, Occupancy, Others)
  5. LLPs Head Business Exercises
  6. The Subtleties of Designated LLP Partners
  7. The LLP ‘s full commitment of its accomplices
  8. Absolute commitment from all of the LLP’s accomplices
  9. The List of Assigned Partners
  10. Punishment points of interest forced upon the LLP, presuming any
  11. Points of interest to exacerbate offences, if there are any
  12. Subtleties of the LLP and, besides, an organization in which the Partner / Designated Partner is a Director / Partner (It is mandatory to enter this information on the off chance that any Partner may be an accomplice in an LLP and also a Director in any organization)

It is important to remember that this can not be resubmitted until the LLP Annual Return is recorded. Furthermore, the all-out agreement received by all LLP partners referenced in LLP Form 11 Annual Return will meet LLP Form 8 Account and Solvency Statement to be reported by October 30th at the latest.

Significant Aspects to note while recording Annual return for LLP

A portion of the important pointers to be noted by all LLPs when reporting the 5-page Form 11 are as follows:

  • Using the catch accessible on the Form for pre-examination can assist to approve the data submitted. This will help manage the blunder-free details.
  • Any place figures are revealed in the systems, they have to be entered as they remain on March 31, 2020, excluding in the case of the ‘turnover’ that will stop on March 31, 2020, for one year.
  • LLP nuances and, also, an organization where the accomplices are chiefs/collaborators.
  • The e-structure mandatorily requires approval from a rehearsing company secretary if the following requirements are met:
    • All of the Partners’ investment is more than Rs. 50 lakhs OR
    • LLP turnover crosses Rs. 5 crores.

LLP Annual Compliance Overview

  • For registration in the LLP, two people should be registered as partners at the most when one is a citizen and a resident in India. The partners in an LLP should bear the responsibility to maintain the proper accounting record, to file a return on income taxes and to produce an annual report on every financial year with the Ministry of Corporate Affairs (MCA). The partners in an LLP should bear the responsibility to maintain the proper accounting record, to file a return on income taxes and to produce an annual report on every financial year with the MCA.
  • The reports should be annually submitted for preserving continuity to create an LLP and significant fines for non-compliance should be excluded under the statute. A Limited Liability Company need not meet any annual enforcement. The annual enforcement is less than that expected for private limited partnerships. However, failing to comply may only impose penalties of Rs.1 lakh for a private limited. Whereas, a fine of  Rs.5 lakh for LLP may get imposed.
  • The chosen members also must retain jointly an acceptable record, as well as to send an annual report in conformity with MCA, quarterly. LLPs shall be established by a different legal body. An LLP is not necessary to audit the record books except when
    • the total revenue is more than Rs.40 lakhs or
    • when the company’s profit or expenditure is more than Rs.25 lakh.

In fact, an LLP need not audit its account books if it meets the above conditions.

  • LLPs must file an account and solvency statement within thirty days of the end of the six month period. They must also file an annual return within sixty days of the year-end. 

Conclusion

We hope this thorough information related to Form 11 answers all your questions and if you have more, you know we are just a click away at www.vakilsearch.com.

 

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A lawyer with 14 years' experience, Vikram has worked with several well-known corporate law firms before joining Vakilsearch.