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Annual Compliance for Limited Liability Partnership (LLP)

Filing annual returns on time ensures that your LLP remains in good standing and avoids hefty penalties. While LLPs enjoy fewer compliance obligations compared to private limited companies, the penalties for non-compliance can be substantial. Private companies may face penalties of up to ₹1 lakh, but for LLPs, this can escalate to ₹5 lakh.

  • Expert Guidance: Our professionals handle all compliance requirements.
  • Timely Filings: Avoid late fees and penalties.
  • CA & CS Certification: We facilitate all necessary certifications.
  • End-to-End Compliance Management: So, you can focus on running your business.

Whether you’re a startup navigating its first compliance cycle or an established firm looking for a hassle-free way to manage filings, we ensure you meet all regulatory requirements without unnecessary stress.

Compliance Monk makes LLP annual filing effortless.  📢 Stay Compliant & Avoid Penalties!

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LLP Compliance

LLP Compliance Requirements

An LLP is a separate legal entity, which means it must comply with specific regulations. The Designated Partners are responsible for ensuring the LLP meets all legal obligations. Here are the key compliance requirements:

✅ Maintaining Proper Books of Accounts
✅ Filing Annual Returns (Form 11)
✅ Submitting Statement of Accounts & Solvency (Form 8)
✅ Filing Income Tax Return (ITR-5)
✅ Tax Audit (If Applicable)

By adhering to these requirements, LLPs maintain transparency, financial credibility, and legal status.

📌 Maintaining Proper Books of Accounts

Maintaining accurate financial records is non-negotiable for LLPs. These records should include:
✔ Financial transactions
✔ Income and expenses
✔ Assets and liabilities

Proper bookkeeping is essential for financial assessment and compliance

💡Benefits of LLP Annual Compliance

✔ Enhanced Credibility: Boosts trust with banks and investors.
✔ Financial Record Maintenance: Creates a transparent financial track record.
✔ Avoids Penalties & Legal Issues: Prevents fines and legal complications.
✔ Facilitates Conversion & Closure: Ensures smooth transitions for structural changes or winding up.

📊 Audit & Tax Filing Requirements for LLPs

🔎 Tax Audit (If Applicable)

LLPs require a tax audit if:

✔ Turnover exceeds ₹40 lakh
✔ Contribution exceeds ₹25 lakh

📅 Filing Deadline for Tax Audited LLPs: September 30

📢 New Tax Audit Limit (From AY 2021-22 Onwards)

  • If cash transactions (receipts + payments) are less than 5% of total transactions, the tax audit limit is ₹5 crore instead of ₹40 lakh.

💼 Income Tax Return (ITR-5)

All LLPs must file an Income Tax Return using Form ITR-5.

📅 Filing Deadline:

  • July 31 (if no tax audit is required)
  • September 30 (if tax audit is required)

📄 Filing Annual Return

Form 11 is an annual return that provides key details about the LLP, including:
🔹 Number of partners
🔹 Partner contributions
🔹 Summary of the LLP’s operations

📅 Due Date: Must be filed by May 30 every year.

Penalty for Late Filing: ₹100 per day until filed.

💡 Note: An LLP cannot close or wind up unless all annual returns, including Form 11, are filed.

💰 Filing Statement of Accounts – LLP Form 8

LLPs must file a Statement of Accounts & Solvency to report their financial position, including assets and liabilities.

📅 Due Date: Must be filed by October 30 every year.

✅ Signing & Certification:

  • To be signed by two designated partners.
  • Certified by a CA, CS, or Cost Accountant.

📜 Form 8 has two sections:
1️ Part A: Solvency Statement
2️ Part B: Income, Expenditure & Accounts Statement

Penalty for Late Filing: ₹100 per day until filed.

🌎 International Transactions – Form 3CEB

LLPs engaged in international transactions must file Form 3CEB, certified by a Chartered Accountant.

📅 Deadline: November 30

Why Choose Compliance Monk?

📢 Stay Compliant & Avoid Penalties! 📞 Contact us Now!

At Compliance Monk, we make the process seamless by offering expert guidance tailored to your business needs. Our expert team ensures:

    • Hassle-free documentation and filing.

    • Timely updates and transparent communication.

    • Guidance on choosing the right set of forms.

    • Continuous support throughout the process.

FAQs

1. What is annual compliance for an LLP?

Annual compliance for a Limited Liability Partnership (LLP) refers to the mandatory filings and regulatory obligations an LLP must fulfill, including the filing of Form 11 (Annual Return), Form 8 (Statement of Accounts & Solvency), and Income Tax Returns (ITR-5).

2. Who is responsible for ensuring LLP compliance?

The Designated Partners of an LLP are responsible for ensuring timely compliance, maintaining records, and submitting the necessary filings with the Registrar of Companies (ROC) and Income Tax Department.

3. What are the key annual compliance requirements for an LLP?

An LLP must:

  • Maintain proper books of accounts
  • File Form 11 (Annual Return) by May 30
  • Submit Form 8 (Statement of Accounts) by October 30
  • File Income Tax Return (ITR-5) by July 31 (or September 30 if tax audit is applicable)
  • Conduct a tax audit if turnover exceeds ₹40 lakh or contribution exceeds ₹25 lakh

4. What is Form 11 in LLP compliance?

Form 11 is an Annual Return that provides details of the LLP, including partner contributions and ownership structure. It must be filed by May 30 each year.

5. What is Form 8 in LLP compliance?

Form 8 is the Statement of Accounts & Solvency, which reports the LLP’s financial position, assets, and liabilities. It must be filed by October 30 each year.

6. What happens if an LLP fails to file its annual returns?

Failure to file Form 11 or Form 8 on time results in a penalty of ₹100 per day until the return is filed. Non-compliance may also prevent the LLP from closing its operations.

7. Is an LLP required to undergo an audit?

An LLP must undergo a tax audit if its turnover exceeds ₹40 lakh or its contribution exceeds ₹25 lakh in a financial year.

8. What is the due date for filing an LLP’s Income Tax Return?

  • July 31 (for LLPs not requiring a tax audit)
  • September 30 (for LLPs requiring a tax audit)

9. What is Form 3CEB, and who needs to file it?

Form 3CEB is required for LLPs engaged in international transactions or Specified Domestic Transactions with associated enterprises. It must be certified by a Chartered Accountant and filed by November 30.

10. Can an LLP be closed if it has not completed annual filings?

No, an LLP cannot be closed or wound up unless all outstanding annual filings are completed and penalties, if any, are cleared.

11. Why is annual compliance important for LLPs?

Regular compliance helps maintain an LLP’s legal standing, financial credibility, and transparency, while also avoiding penalties and legal issues.