LLP or Limited Partnership is a hybrid combination of a limited and a partnership company.
A minimum of two partners are required to incorporate an LLP, and there is no upper limit.
LLPs are required to maintain proper accounts and file annual returns with the Ministry of Corporate Affairs.
Incorporation Process
A minimum of two partners are required to incorporate an LLP.
There is no upper limit on the number of partners.
LLPs must file annual returns within 60 days from the end of the close of the financial year.
Account statements and solvency must be filed within 30 days from the end of six months of the closure of the financial year.
Documentation and Other Considerations
LLPs must file income tax returns every year.
IndiaFilings provides a comprehensive LLP compliance service that includes annual filing and LLP income tax return filing at an affordable price point.
LLPs must maintain proper account books on a cash or accrual basis.
LLPs must prepare their financial statements within six months for filing with the ROC.
LLP Tax Filing
The income tax rate applicable for LLPs registered in India is 30% of the total income.
A surcharge is levied on the income tax payable at the rate of 12% when the total income exceeds Rs.1 crore.
Health and Education cess of 4% is applicable on the amount of income tax and the applicable surcharge.
LLPs that entered into an international transaction with associated enterprises or undertook certain Specified Domestic Transactions are required to file Form 3CEB by 30th November.
LLPs must file an income tax return using Form ITR 5.
LLP tax payments can be made in physical mode through designated banks or E-payment mode.
LLP Accounts Maintenance
LLPs have the option of maintaining the books of accounts on a cash or accrual basis.
The books of accounts must be maintained at the registered office of the LLP and must contain all the necessary information.
Statement of accounts and solvency must be filed with the registrar within 30 days from the end of 6 months of the financial year to which the statement relates.
LLPs are required to get the accounts audited by a practicing chartered accountant if the annual turnover in any financial year exceeds Rs. 40 lakhs or if the contribution exceeds Rs. 25 lahks.
Dedicated Advisor
Your LLP will be assigned a dedicated Compliance Manager who will be a single point of contact to help you maintain compliance for your LLP.
You can get in touch with your Compliance Manager at any time and get assistance on matters related to your LLP’s compliance.
Income Tax Return
Income tax return for an LLP must be filed irrespective of income, profit, or loss.
LLP income tax return will be due on 31st July if there is no tax audit requirement.
If tax audit is required, the LLP income tax return will be due on 30th September.
provides comprehensive LLP compliance services, including annual filing, LLP income tax return filing, accounting, and dedicated advisor services at an affordable price point. Contact us to learn more