If you are running a Limited Liability Partnership (LLP) in India, you must be aware of the annual compliance requirements that you have to fulfil. One of these requirements is filing Form-11, which is the annual return of LLP. In this article, we will explain what Form-11 is, why it is important, and what are the consequences of not filing it.
What is Form-11?
Form-11 is an annual return that has to be filed by all LLPs registered under the Limited Liability Partnership Act, 2008, irrespective of their turnover, profit, or business activity. Form-11 contains the basic information about the LLP and its partners, such as:
Name and address of the LLP
Principal business activity
Number of partners and designated partners
Name, address, nationality, and appointment date of each partner and designated partner
Total contribution received from each partner
Details of penalties imposed or offences compounded during the financial year
Any other information as required
Form-11 has to be filed online on the MCA portal using the digital signature of at least one designated partner. The form has to be submitted within 60 days of the closure of the financial year, i.e., by 30th May of each year. For example, for the financial year 2022-23, Form-11 has to be filed by 30th May 2023.
Why is Form-11 important?
Form-11 is important for several reasons. First, it is a statutory obligation for all LLPs to file Form-11 as per Section 35 of the LLP Act, 2008. Failing to do so can attract penalties and legal action from the authorities. Second, Form-11 helps in maintaining the updated records of the LLP and its partners with the Registrar of LLPs. This can help in avoiding any discrepancies or disputes in the future. Third, Form-11 also serves as a source of information for the public and other stakeholders who may be interested in knowing more about the LLP and its partners.
What are the consequences of not filing Form-11?
If you fail to file Form-11 within the due date, you will have to pay a late fee of Rs. 100 per day for each day of delay until you file it. There is no upper limit for this late fee, which means it can accumulate to a huge amount over time. For example, if you file Form-11 after 100 days of delay, you will have to pay Rs. 10,000 as a late fee.
Apart from this, not filing Form-11 can also lead to other consequences, such as:
You may face legal action or prosecution from the authorities for violating the provisions of the LLP Act, 2008.
You may lose your credibility and reputation as an LLP and face difficulties in dealing with other parties.
Therefore, it is advisable to file Form-11 on time and avoid any hassle or penalty.
Disclaimer: This article is intended for educational and informational purposes only. It is recommended to seek the assistance of a Practising Company Secretary or consultant in India to complete all compliances applicable to your business.
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