A Limited Liability Partnership is an entity registered under the Limited Liability Partnership Act, 2008. With respect to compliance, the LLPs have minimum compliances as compared to limited companies.
The filing of Form -11 and Form -8 annually are among the mandatory compliances which every Limited Liability Partnerships is required to comply with. In this article, we will understand what is Form-11, why and when it is required to file and how to file this form with MCA.
What is Form-11 in case of LLP?
Form-11 is an Annual Return which every LLP is required to submit within 60 days from the closure of the financial year i.e. 31st March every year.
What information is required to be filled in Form-11?
Apart from basic details such as Name, Address of the LLP, Details of designated partners/partners, the following details are required to be filled in
- The amount of ‘contribution received by all partners’ of LLP.
- Details of penalties imposed on the LLP and/or partners and compounding of offences during the financial year.
- Turnover of the LLP
- Total obligation of Contribution of the LLP
- Details of LLP(s) and/ or company(s) in which partner/ designated partner is a director/partner
Once the LLP Annual Return is filed with MCA, it cannot be resubmitted. Further, the total contribution received by all partners of the LLP mentioned in LLP Form 11 Annual Return must match LLP Form 8 Statement of Accounts & Solvency to be filed on or before 30th October.
Important aspects to take care before filing Form-11
- The system automatically displays the total number of designated partners, partners and total obligation of the contribution of partners in the LLP. In case the number of designated partners and partners as on 31st March for that financial year exceeds two hundred (200), the Details of each designated partners and/or partners including their profit-sharing details should be verified through the screen for Verifying partners’ details at LLP portal.
Once the details are updated on the LLP portal, a service request number (SRN) is generated and the same shall be mentioned in the Form.
Maximum fields in the form are auto-filled or are pre-filled. In case the value of ‘Obligation of contribution’ or ‘residential status’ is not displayed or the displayed details need to be updated, then enter updated value/status.
Filing of Form-11 shall not be allowed in case there is any eForm 4 (Notice of appointment, cessation and change in designation of a designated partner or partner) pending for payment of fee or any eForm 4 is under processing in respect of the LLP.
Due date for submission of Form-11 by LLP
Every LLP shall file Annual Return in Form-11 within 60 days from the closure of the financial year. That means 30th May every year will be the due date for submission of Form-11.
In view of COVID-19, MCA has launched LLP Settlement Scheme, and LLP Modified Settlement Scheme, whereby immunity against the filing of certain belated documents is available and belated documents can be filed without additional fees. Therefore, the due date for filing Form -11 for FY 2019-20 is 30th September 2020. The said form can be filed without additional fees and prosecution for non-filing shall be not be initiated till September 30, 2020
What are the documents/ attachments to Form-11?
The ‘Details of LLP and/ or company in which partner/ designated partner is a director/ partner’ is a mandatory attachment to Form 11. Any other information can be submitted via optional attachment.
Whether certification by company secretary mandatory in case of Form 11?
Certification to Form-11 by a company secretary in whole-time practise is mandatory in case the total obligation of the contribution of partners of the LLP exceeds Rs. 50 lakhs or turnover of LLP exceeds Rs. 5 crores.
The signing of Form-11 by the designated partner
Form -11 should be digitally signed by the designated partner of the LLP. In case the total obligation of the contribution of partners of the LLP exceeds Rs. 50 lakhs and turnover of LLP does not exceed Rs. 5 crores, then the eForm needs to be signed digitally company secretary in whole-time practice as well.
Penalties for non-filing or delayed filing of Form-11
The penalties involved for non-filing of Form-11 on or before the due date, are much higher. If the LLP fails to file Form-11 on or before 30th May every year, then a penalty of Rs.100 per day until the date of filing will be applicable. There is no cap on the amount of penalty and will continue till the actual date of filing the eForm -11. Therefore it is advisable to file the returns on time to reduce the penalty payment burden.
How to file Form -11 with MCA?
Form-11 is filed with the Ministry of Corporate Affairs. Below is the 20 step guide on how to file Form-11:
Step 1: Go to www.mca.gov.in, then on the top menu bar click on ‘Forms and downloads’. Then below screen will appear
Step 2: Click on ‘LLP Forms Downloads’. From the list of forms, download ‘Form-11 - Annual Return of Limited Liability Partnership (LLP)’. Now open the eForm.
Step 3: In (1)(a) select the financial year for which Annual Return is to be filed.
In (1)(b) mention the start date (dd/mm/yyyy) of the financial year for which the return belongs
Step 4: Enter the LLPIN number and click ‘prefill’. The details related to name, address, email id, the total number of designated partners, partners, the total obligation of the contribution of the LLP and DIN numbers of designated partners will be prefilled.
Step 5: In point No. 6 of eForm-11, it is mandatory to select the ‘Business Classification’ under which the LLP can be classified. The options are provided in the dropdown.
Spet 6: Under point no. 8(d) - Enter the Total contribution received by all partners of the LLP in Rupees. Note that Contribution received’ to be entered should be in corresponding with Form 8.
Step 7: Click on ‘prefill’ to get the details of the partners. Here, it is important to note that amount of actual contribution received and accounted should be entered manually. The total obligation amount is prefilled but is editable.
Details in point number 9 in Form-11 will be applicable if the number of designated partners exceed 200 and their details are verified through the screen for Verifying partners’ at LLP portal. So kindly keep it blank, unless applicable.
Step 8: Verify the number of LLPs where the designated partner is a partner and number of companies where he/she is a director.
If the LLP has body corporate as its partner, then details of such partner will be prefilled in point no. 11 in Form.
Point no. 12 is auto prefilled, where the summary of designated partners/partners as on 31st March in LLP will appear.
Step 9: if there are any penalties imposed on the LLP or partners/designated partners, then their details shall be entered in point no. 13, else keep it blank.
Step 10: During the year if there were any compounding of offences, then enter the details in point 14, else keep it blank.
Step 11: check whether the turnover of the LLP exceeds Rs. 5 crores, accordingly check ‘yes’ or ‘No’ buttons.
Step 12: The details LLP and/or company in which designated partner/partner is a director/partner provided in a specified format is a mandatory attachment to the Form-11. Attach the same to Form 11.
Step 13: Next step is to provide verification regarding the correctness and completeness of the information provided in the Form and attachments to the Form.
Enter DPIN number of the designated partner (the form is verified via digital signature)
Step 14: Certificate
The certification part is auto-enabled. In case the total obligation of the contribution of partners of the LLP exceeds Rs. 50 lakhs or turnover of LLP exceeds Rs. 5 crores, then certification shall be done by a whole-time practising company secretary, else Designated Partner of the LLP will certify the Form.
You need to enter DPIN of Designated Partner for certification by Designated partner or Certificate of Practice Number for certification by practising company secretary.
Note if certification by practising company secretary is not applicable, then do not check on ‘Associate’ or ‘Fellow’ radio buttons. You cannot uncheck them.
Step 15: Click on ‘Check Form’. This will validate the details mentioned in the Form. Note that only form level details are validated. For Modification of any details in the Form, you can click on ‘Modify’ button and change details accordingly. After every modification to the form, check form is mandatory.
Step 16: Attach the digital signature of Designated partner and/or Company Secretary, if applicable. The digital signature of the Designated partner or professional should be valid and registered on MCA portal.
Step 17: Now click on ‘prescrutiny’ button. If everything is correct, a pop-up window saying “No Prescrutiny errors have found” will be displayed.
This will complete filling details in Form-11 successfully. Now save the Form and proceed with filing the same on MCA portal.
Step 18: Go to www.mca.gov.in and Login on the portal.
Step 19: click on ‘Upload e-form’. Now click on ‘Normal Form’ and Browse the saved from the file path. Once the Form is selected for upload, click on the upload button.
Step 20: Upon successful loading of form, the payment window will pop-up. Select the mode of payment and upon successful payment form will be submitted and payment challan is generated. Save the Challan copy, as it contains the SRN number, which will be useful for any future references.
That’s it! The Form is successfully submitted on MCA portal.
Format of Detail of LLP(s) and/ or company(s) in which partner/ designated partner is a director/partner
Detail of LLP(s) and/ or company(s) in which partner/ designated partner is a director/partner
_____________ Name of the Designated Partner
_____________ (DPIN Number)
The above-mentioned details can be captured from ‘View Director Master Data’. Kindly get the details verified from each partner before proceeding with submission.
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