Annual Compliance Filing for LLPs

Compliance with annual filing requirements is essential for Limited Liability Partnerships (LLPs) in India. LLPs must follow specific rules and submit required documents to stay legally compliant and avoid fines. This includes filing forms with the Registrar of Companies (ROC) and keeping proper records.

LLP Annual Compliance

LLP annual compliance involves maintaining financial records and filing required reports with the Ministry of Corporate Affairs (MCA) at the end of every financial year.

LLP Compliance Requirements

• Keeping proper books of accounts and financial statements.
• Filing Annual Return (Form 11) with MCA.
• Filing Statement of Account & Solvency (Form 8) with MCA.
• Filing Income Tax Returns.
• Tax audit if turnover exceeds ₹40 lakh or capital contribution crosses ₹25 lakh (as per the latest budget).

Audit Requirements for LLP

LLPs must get accounts audited if:

• Annual turnover exceeds ₹40 lakh.
• Capital contribution exceeds ₹25 lakh in the previous financial year.

Note: These are general requirements. Consult our Sperso filings tax expert for updated rules and LLP-specific needs.

Benefits of LLP Annual Filing Compliances

• Builds Credibility: Shows transparency and good governance, earning trust from investors, lenders, and stakeholders.
• Avoids Penalties: Timely filings help prevent MCA-imposed fines and late fees.
• Simplifies Credit Access: Banks may require updated filings before granting loans or credit.
• Legal Requirement: Mandatory under the LLP Act, 2008, ensuring the firm stays legally compliant.

LLP Annual Return

An LLP Annual Return is a mandatory report submitted to the MCA, summarising the LLP’s activities for the past financial year. It covers details of partners, their contributions, financial status, and any changes in structure or operations during the year.

LLP Annual Return Forms

LLPs must file two key forms as part of their annual return:

• LLP Form 11: Captures details of partners, their contributions, changes in the LLP agreement (if any), and penalties during the year.
• LLP Form 8: The Statement of Account and Solvency, showing the LLP’s financial status—income, expenses, and net assets.

LLP Annual Return Due Date

LLPs must file Form 11 within 60 days after the financial year ends. As all LLPs close their financial year on March 31st, the filing deadline is generally May 31st each year.

LLP Annual Return – Form 11

Form 11 is the key document for filing an LLP’s annual return with the MCA. It covers vital details about the LLP’s operations during the last financial year.

Form 11 Due Date

Form 11 must be filed within 60 days of the financial year’s end. For LLPs closing on March 31st, the due date is May 31st annually.

Form 11 LLP Late Fees

Delays in filing Form 11 attract penalties that increase over time:

• No penalty: If filed within one month after the due date (by June 30th).
• Late fee: A fixed charge applies if delayed for over one month but less than three months.
• Higher penalty: A daily fine is charged for delays beyond three months. There’s no maximum cap, so late fees can grow substantially with time.

LLP Annual Return Form 8

Form 8 LLP, called the Statement of Account and Solvency, highlights the LLP’s financial status and is a key part of annual compliance.

Form 8 LLP Due Date

Form 8 has a different deadline from Form 11. It must be filed within 30 days after six months from the financial year-end. As the LLP year ends on March 31st, the due date for Form 8 is usually October 30th.

Form 8 LLP Late Fees

Late filing of Form 8 also leads to penalties that rise with delay:

• No fee: If filed within a grace period after the due date (exact period may vary).
• Fixed late fee: For delays beyond the grace period.
• Daily penalty: Applied for further delays, with no upper limit—resulting in significant charges for prolonged non-compliance.

Filing and Audit Requirement Under the Income Tax Act

LLPs must file income tax returns like other businesses. Audit necessity depends on turnover and capital contribution.

• No Audit Needed: If annual turnover is below ₹40 lakh and capital contribution is under ₹25 lakh, audit isn't required.
• Audit Mandatory: If turnover crosses ₹40 lakh or capital contribution exceeds ₹25 lakh during the year, the LLP must get its accounts audited.

10= Documents Required for LLP Annual Filing Compliance

To file your LLP’s annual return (Form 11 & Form 8), the following documents are needed:

For Form 8 LLP (Statement of Account and Solvency)

• LLP Agreement
• Audited Financial Statements (if applicable)
• Bank Statements
• Investment and Loan Details
• Partners’ Capital Account Details

For Form 11 LLP

• LLP Agreement
• Incorporation Certificate
• Partner Details and Contributions
• Changes in Partners or Agreement (if any)
• Details of Penalties (if applicable)

Note: Requirements may vary based on your LLP’s situation. Consult our Sperso filings tax advisor for complete guidance.