Timelines for the Annual filings by “Limited Liability Partnerships (LLPs) and KYCs of Designated Partners (DIN Holders) for FY 2021-22 with the Ministry of Corporate Affairs (MCA) to be made in FY 2022-23:
1. Annual Filing Forms:
|Form||Particulars||Due Date for filing||Remarks|
|Form 11||Annual Return||May 30th, 2022||Additional fee on delay filings
Up to 15 times normal filing fees plus Rs. 10 per day for every day delay beyond 360 days.
Other than Small LLPs:
Up to 30 times normal filing fees plus Rs. 20 per day for every day delay beyond 360 days.
|Form 8||Statement of Account & Solvency||October 30th, 2022|
|Form for KYC of Designated Partners (in their individual capacity)|
|Form DIR-3 KYC/ Web KYC||
i) Every individual who holds a Director Identification Number (DIN) as on 31st March, 2022 shall, file e-form DIR-3-KYC/Web KYC with the Central Government (MCA) on or before 30th September 2022.
ii) The Individuals who have already filed e-Form DIR-3-KYC for the previous Financial year need to complete their KYC through web-form DIR-3 KYC-WEB, web-based verification service provided by MCA by verification of OTPs to be received to their previously provided mobile and email ID.
iii) However, in case a person wishes to update his mobile No. or e-mail address, he/she would be required to file e-Form DIR-3 KYC, as this facility of updation is not available in the web-based service.
iv) In case of updation in any other personal details, e-form DIR-6 has to be filed for updation of the same before completion of KYC through the web-based service.
|September 30th, 2022||
No statutory/filing fee on submission of KYC within due date (i.e., on or before 30th September, 2022).
Whereas a fee of Rs.5000/- is applicable after the due date.
Non-filing of the KYC form within stipulated time leads to marking of DIN as ‘Deactivated due to non-filing of DIR-3 KYC.’ The de-activated DIN shall be re-activated only after e-form DIR-3-KYC /Web based verification is filed with fee of Rs. 5000/- for default.
2. Some Important Aspects
i) First Financial Year & Income Tax Return:
In case LLP has been incorporated on or after 1st October of financial year, then LLP can close its first financial year either on the coming or next 31st March i.e. LLP files its first financial year details for 18 months. However, LLP has to file its Income Tax Returns in the First 31st March itself despite of filing/closing its first financial year for a period upto 18 months as per LLP Act.
ii) Small LLP:
LLPs, contribution of which, does not exceed 25 lakh rupees and turnover of which, as per the Statement of Accounts and Solvency for the immediately preceding financial year, does not exceed 40 lakh rupees.
iii) LLP Statutory Audit Requirement:
Audit of Financial Statements by Chartered Accountant is mandatory if turnover exceeds 40 Lakhs or Contribution exceeds 25 Lakhs. The eForm-8 shall also be certified by the auditor concerned.
iv) Resident DP
Every LLP hall have at least two designated partners who are individuals and at least one of them shall be a resident in India (a person who has stayed in India for a period of not less than 120 days during the financial year).
v) No. of LLPs a person can become DP
A person shall NOT become designated partner in more than twenty LLPs. He/she shall comply the prescribed limit within a period of one year from such notification dated 11/02/2022. Non-compliance shall be punishable with fine which shall not be less than five thousand rupees but which may extend to twenty five thousand rupees.
vi) Consequences of Late filings
i. Default in filing form-8/form-11
Additional Fee as stated in the above table, and LLP and its designated partners shall be liable to a penalty of one hundred rupees for each day during which such failure continues, subject to a maximum of one lakh rupees for the limited liability partnership and fifty thousand rupees for every designated partners for default in each such filing/form and
ii. LLP which fails to (i) comply with the maintenance of proper books of accounts,( ii) prepare a Statement of Account and Solvency within a period of six months from the end of the financial year, and (iii) Audit its Accounts (if applicable)- shall be punishable with fine which shall not be less than twenty-five thousand rupees, but may extend to five lakh rupees and every designated partner of such limited liability partnership shall be punishable with fine which shall not be less than ten thousand rupees, but may extend to one lakh rupees.
Grounds of disqualification to become a designated partner shall be same as specified in Sec 164(1) of the Companies Act.
A person, who is or has been a director of a company or designated partner of LLP, as the case may be, which a) has not filed financial statements (form AOC-4) or the Statement of Account & Solvency (form-8 LLP) or annual returns (form MGT-7/7A) or(form-11 LLP), as the case may be, for any continuous period of three financial years, shall not be eligible to become or continue as a designated partner of that limited liability partnership or to become designated partner in other limited liability partnerships for a period of five years from the date on which the said company or limited liability partnership fails to do so.
A person, who-
– is or
– has been
(i) a director of a company or
(ii) designated partner of LLP
(i) Which(Company) has not filed financial statements (form AOC-4/etc.) or annual returns (form MGT-7/7A)) for any continuous period of three financial years
(ii) Which(LLP) has not filed
the Statement of Account and
Solvency (form-8) or annual returns (form-11) for any continuous period of three financial years
(i) Which, has failed to repay the deposits accepted by it or pay interest thereon or to redeem any debentures on the due date or pay interest due thereon or pay any dividend declared and such failure to pay or redeem continues for one year or more
|shall NOT be eligible to-
(i) become or continue as a designated partner of that LLP
(ii) become designated partner in other LLPs
for a period of five years from the date on which the said company or LLP fails to do so
If a person becomes as a designated partner of a defaulting LLP, he shall not incur disqualification for a period of six months from the date he becomes designated partner
viii)The following provisions of the Companies Act shall also been applicable to Designated partners with certain exceptions and modifications w.e.f. 11/02/2022:
Sec 90- Register of significant beneficial owners in a company
Sec 164- Disqualifications for Appointment of Director
Sec 165- Number of Directorships
Sec 167- Vacation of Office of Director
Sec 206- Power to Call for Information, Inspect Books and Conduct Inquiries
Sec 207- Conduct of Inspection and Inquiry
Sec 252-Appeal to Tribunal (i.e. by a person aggrieved by the order of the registrar notifying an LLP as struck off and dissolved pursuant to section 75 of the LLP Act)
Sec 439- Offences to be Non-cognizable
Disclaimer: The above views are the personal views of the author and the Readers are requested to exercise their due diligence & take professional advice before taking any action.