Annual Compliance Filed By An LLP | Ebizfiling


 

Introduction

All Limited Liability Partnerships (LLP) that are registered in India must comply with certain annual compliances that are specified by the Ministry of Corporate Affairs (MCA). An LLP should also comply with the requirement of Income Tax Filings and the Registrar of Companies (ROC). In this blog, we will discuss all the required annual compliance filed by LLP.

 

What Limited Liability Partnership?

 

An LLP is a hybrid form of business entity. The partners of an LLP enjoy the benefits of limited liability like companies and the flexibility of a partnership. It is governed by the Limited Liability Partnership Act, 2008. The existence of an LLP cannot be affected from the death or removal of any partner. Every year an LLP needs to comply with LLP Annual filing.

 

Annual compliance filed by an LLP

 

Once you incorporate an LLP, there are certain annual compliance to be filed annually. The required annual compliance by a Limited Liability Partnership is listed below in a tabular form.

 

Sr. No.

Form name

Description

To be filed with

Due date

1

Statement of Accounts and Solvency in LLP Form 8

An LLP should prepare and close its account by 31st March of every year. As per the LLP (2nd Amendment) rules 2022, the interim resolution professionals can sign Statement of Accounts and Solvency on the behalf of an LLP.

ROC

It is to be filed by at least two Designated Partners within 30 days after completion of six months of the financial year.

2

Annual return in LLP Form 11

Form 11 is a summary of all the designated partners to know if there is any change in the management or not.

ROC

Within 60 days from the closure of the financial year.

3

Income tax return

Every LLP has to file Income Tax Returns every year.

Income tax Department.

The last date to file ITR is 31st July (or 30th September, if tax audit is mandatory)  

 

4

DIR 3 KYC

This form is filed by each designated partner of the LLP.

ROC

It should be filed on or before 30th September.

 

Important note- It should be noted that an LLPs whose annual turnover is at least Rs. 40 lakhs or contributions is at least Rs. 25 lakhs are obliged to get their financial records audited.

 

Penalties for non-compliance

 

If an LLP fails to comply with annual compliances, then they will be liable to pay penalties. If there is a delay in filing Form 8 and 11, they will have to pay the penalty of Rs. 100 per day for the default. No LLP (Limited Liability Partnership) can close wind up until they file annual accounts.

 

Wrap-up
 

It is the duty of the Designated Partners of an LLP to maintain a proper book of accounts and file an annual return with the MCA every financial year. Hence it is advisable that you should file Form 8, Form 11, and other forms before the due dates to avoid paying penalties.

 

 

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