LLP Annual Filing

LLPs need to file their returns and statement of accounts annually. Failing to comply with this can attract a penalty of up to Rs 5 lakh. Annual Compliance comprises. T&C*
End-to-end compliance support – from document preparation to final submission
Timely filing & deadline tracking to avoid late fees and penalties
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Annual Compliance Filing for LLPs

Ensuring compliance with annual filing requirements is essential for Limited Liability Partnerships (LLPs) in India. LLPs must follow prescribed regulations and submit the required documents on time to maintain their legal status and avoid penalties. Annual compliance includes filing specified forms with the Registrar of Companies (ROC) and maintaining accurate and up-to-date records.

LLP Annual Compliance

LLP Annual Compliance refers to the process of maintaining accurate financial records and filing mandatory returns with the Ministry of Corporate Affairs (MCA) at the end of each financial year. Timely compliance ensures that the LLP remains legally compliant and avoids penalties.

LLP Compliance Requirements

An LLP is required to fulfill the following annual compliance obligations:

Maintaining proper books of accounts and financial statements
Filing the Annual Return (Form 11) with the MCA
Filing the Statement of Accounts & Solvency (Form 8) with the MCA
Filing Income Tax Returns
Filing a Tax Audit Report if:
- Annual turnover exceeds ₹40 lakh, or
- Capital contribution exceeds ₹25 lakh (as per the latest budget provisions)

Audit Requirements for LLP

An LLP is mandatorily required to get its accounts audited if:

The annual turnover during the financial year exceeds ₹40 lakh, or
The capital contribution by partners at any time during the previous financial year exceeds ₹25 lakh

Note: The above are general compliance requirements. It is advisable to consult our tax advisors at FilingIndia for the latest regulations and compliance requirements specific to your LLP.

Benefits of LLP Annual Filing Compliance

Maintaining proper annual filing compliance for your LLP offers several important benefits:

Maintains Transparency and Credibility: Filing annual returns reflects transparency and strong corporate governance, helping build trust with investors, creditors, and other stakeholders.
Avoids Penalties and Late Fees: Timely compliance helps prevent penalties and late fees imposed by the Ministry of Corporate Affairs (MCA).
Easy Access to Credit: Banks and financial institutions often require up-to-date statutory filings before approving loans or credit facilities.
Legal Compliance: Filing annual returns is a mandatory requirement under the Limited Liability Partnership Act, 2008, ensuring your LLP remains legally compliant.

LLP Annual Return

An LLP Annual Return is a statutory report filed with the Ministry of Corporate Affairs (MCA) that provides a comprehensive overview of the LLP’s activities during the previous financial year. It includes details of the LLP’s partners, their capital contributions, financial performance, and any changes in the LLP’s structure or operations over the year.

LLP Annual Return Forms

There are two primary forms associated with LLP annual compliance:

LLP Form 11: This is the core annual return form. It contains details of the LLP’s partners, their capital contributions, any changes to the LLP agreement, and information on penalties or compounding of offences, if applicable, during the year.
LLP Form 8: Known as the Statement of Account and Solvency, this form presents the LLP’s financial position, including details of income, expenditure, assets, liabilities, and overall solvency.

LLP Annual Return Due Date

The LLP Annual Return (Form 11) must be filed within 60 days from the end of the financial year. Since all LLPs in India follow a financial year ending on 31st March, the due date for filing Form 11 is 31st May every year.

LLP Annual Return – Form 11

Form 11 is the primary document used to file an LLP’s annual return with the Ministry of Corporate Affairs (MCA). It captures key information about the LLP’s activities during the previous financial year, including details of partners, capital contributions, and any changes in the LLP structure.

Form 11 LLP Due Date

The due date for filing Form 11 is 31st May of each year, i.e., within 60 days from the closure of the financial year on 31st March. Timely filing helps avoid late fees and penalties.

Form 11 LLP Late Fees

Filing Form 11 after the due date attracts late filing penalties, which increase based on the duration of the delay. Below is an overview of the applicable late fees:

No Penalty: If Form 11 is filed within one month after the due date (i.e., on or before 30th June).
Late Filing Fee: A fixed penalty is applicable if the filing is delayed by more than one month but less than three months.
Increased Penalty: For delays exceeding three months, a higher per-day penalty is levied. Currently, there is no maximum cap on this penalty, which means the total late fee can accumulate significantly if the delay continues.

LLP Annual Return Form 8

Form 8 LLP – Statement of Account and Solvency

Form 8 LLP, also known as the Statement of Account and Solvency, is a crucial document for annual LLP compliance. It provides a detailed overview of the LLP’s financial health, including income, expenditure, assets, liabilities, and solvency status.

Form 8 LLP Due Date

The due date for filing Form 8 differs from the Annual Return (Form 11). It must be filed within 30 days from the end of six months following the closure of the financial year. For LLPs with a standard financial year ending on 31st March, this makes the due date 30th October each year.

Form 8 LLP Late Fees

Similar to Form 11, delayed filing of Form 8 attracts penalties that increase with the length of the delay. While the MCA does not publicly specify the exact penalty structure for Form 8, it generally follows a similar pattern to Form 11:

No Penalty: If filed within a short period after the due date (exact timeframe may vary).
Late Filing Fee: A fixed penalty applies if filing is delayed beyond the initial grace period.
Increased Penalty: A daily penalty applies for further delays, which can accumulate significantly for prolonged non-compliance.

Filing and Audit Requirement Under the Income Tax Act

LLP Income Tax Filing and Audit Requirements

Like any other business entity, an LLP is required to file Income Tax Returns (ITR) annually. However, whether an audit of accounts is mandatory depends on the LLP’s annual turnover and capital contribution.

No Audit Required: If the LLP’s annual turnover is less than ₹40 lakh and the capital contribution from partners is less than ₹25 lakh, an audit is not mandatory.
Mandatory Audit: An audit is required if the LLP’s turnover exceeds ₹40 lakh or the capital contribution exceeds ₹25 lakh at any point during the previous financial year.

Documents Required for LLP Annual Filing Compliance

To file your LLP’s annual returns (Form 11 and Form 8), the following documents are typically required:

Documents Required for Form 8 LLP (Statement of Account and Solvency)

LLP Agreement
Audited Financial Statements (if applicable)
Bank Statements
Details of Investments and Loans
Details of Partners’ Capital Accounts

Documents Required for Form 11 LLP (Annual Return)

LLP Agreement
LLP Incorporation Certificate (Proof of Incorporation)
Details of Partners and their Capital Contributions
Details of any changes in Partners or LLP Agreement during the year (if applicable)
Details of any penalties imposed during the year

Note: The above is a general list of required documents. Specific requirements may vary depending on your LLP’s circumstances. It is recommended to consult our tax advisors at FilingIndia to ensure that all necessary documentation is in order.

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