LLP Annual Filing in India: Compliance Calendar & Penalty Avoidance
1. Introduction
Limited Liability Partnerships (LLPs) are separate legal entities that must adhere to certain statutory compliances. Fulfilling these compliance requirements timely ensures smooth business operations and helps avoid penalties, late fees, and legal issues. This guide provides a comprehensive overview of LLP annual compliance, including filing requirements, deadlines, and penalties for non-compliance.
2. categories of llp compliance
LLP compliances can be broadly categorized into three types:
2.1 Annual compliAnce
These are mandatory filings that LLPs must submit every financial year, irrespective of business activity.
2.2 monthly / quarterly statutory compliance
LLPs registered for Goods and Services Tax (GST), Tax Deduction at Source (TDS), Provident Fund (PF), and Employee State Insurance (ESI) must comply with monthly or quarterly filings.
2.3 event based compliance
LLPs must file specific forms when significant business changes occur, such as a change in partners, name, registered address, or conversion of a firm into an LLP.
3. annual compliance requirements for llp
The annual compliance requirements primarily include filing returns with the Ministry of Corporate Affairs (MCA) and the Income Tax Department.
3.1 LLP annual filing compliance
| Form Name | Description | Due Date |
|---|---|---|
| Form 11 | Annual Return summarizing LLP management details | 30th May |
| Form 8 | Statement of Accounts & Solvency (Financials) | 30th October |
3.2 Income tax compliance
| Form Name | Description | Due Date |
|---|---|---|
| ITR-5 | Income Tax Return (No Tax Audit Required) | 31st July |
| ITR-5 | Income Tax Return (Tax Audit Required) | 30th September |
| ITR-5 | Income Tax Return (Transfer Pricing Report Required) | 30th November |
| 3CB-3CD | Tax Audit Report (if turnover > INR 40 lakh or contribution > INR 25 lakh) | 30th September |
| 3CEB | Transfer Pricing Report (for international transactions) | 30th November |
4. monthly / quarterly statutory compliance
4.1 GST Complaince (for llp's with gst registration
| Form Name | Description | Frequency | Due Date |
|---|---|---|---|
| GSTR-3B | Monthly GST Summary | Monthly | 20th of next month |
| GSTR-1 | Invoice-wise Sales Details | Monthly | 11th of next month |
| GSTR-1 | Invoice-wise Sales Details (if opted for quarterly filing) | Quarterly | Before 30 days from the end of the quarter |
4.2 tds compliance (for llp's with tin registration)
| Form Name | Description | Frequency | Due Date |
|---|---|---|---|
| 24Q | TDS on Salaries | Quarterly | Within 30 days from the end of the quarter |
| 26Q | TDS on Non-Salary Payments | Quarterly | Within 30 days from the end of the quarter |
| 27Q | TDS on Foreign Payments | Quarterly | Within 30 days from the end of the quarter |
4.3 PF & ESI Compliance (For LLPs with PF & ESI Registration)
| Form Name | Description | Frequency | Due Date |
|---|---|---|---|
| PF & ESI Return | Employer-employee contribution statement | Monthly | 15th of next month |
5. event based compliance
| Form Name | Description | Due Date |
|---|---|---|
| Form 3 | Changes in LLP Agreement | Within 30 days of change |
| Form 4 | Change in Partners (Addition/Resignation) | Within 30 days of change |
| Form 5 | Change in Name | Within 30 days of change |
| Form 12 | Change in Address for Service of Documents | Within 30 days of change |
| Form 15 | Change in Registered Office | Within 30 days of change |
| Form 17 | Conversion of Firm to LLP | Within 30 days of change |
| Form 18 | Conversion of Company to LLP | Within 30 days of change |
| Form 22 | Court Order Intimation | Within 30 days of order |
| Form 25 | Name Reservation for Foreign LLP | As per requirement |
| Form 27 | Registration of Foreign LLP | As per requirement |
6. penalties for non-compliance
Failure to comply with LLP annual filing obligations can result in severe penalties:
- Late filing of Form 8 or Form 11: INR 100 per day until compliance.
- Income Tax Return Non-Filing: Interest under section 234A and late fee up to INR 10,000.
- GST Non-Filing: Late Fees of INR 50 per day (INR 20 for nil returns) plus interest.
- TDS Non-Filing: Penalty of INR 200 per day until return is filed.
7. benefits of llp annual compliance
- Higher credibility: Ensures compliance with government regulations, aiding in loan approvals.
- Financial Transparency: Maintains a clear financial record, beneficial for stakeholders.
- Avoidance of Penalties: Timely filings prevent unnecessary fines and legal issues.
- Business Growth: Attracts potential investors and partners.
By adhering to the above compliance requirements, LLPs can operate smoothly, avoid penalties, and maintain good legal standing. For professional assistance, reach out to us on email: info@returnfilings.com or on whatsapp: https://wa.me/919910123091 to ensure all statutory obligations are met on time.
frequently asked questions (faq's) related to limited liability partnership (llp) compliance
What are LLP Annual Filings?
LLP annual filings are mandatory submissions to the Ministry of Corporate Affairs (MCA) that demonstrate an LLP’s financial health and operational status. These filings primarily include Form 11 (Annual Return) and Form 8 (Statement of Accounts).
Why are LLP Annual Filings important
Annual filings are crucial for maintaining an LLP’s good standing with the MCA. They ensure transparency, providing stakeholders with essential information, and help avoid penalties for non-compliance. These filings also contribute to a healthy business environment by ensuring accountability.
What are the key compliance requirements for LLPs?
Key compliance requirements include:
Filing Form 11 (Annual Return): Provides details of the LLP’s partners, designated partners, and changes in the LLP.
Filing Form 8 (Statement of Accounts): Contains information about the LLP’s financial performance, including income and expenditure.
Maintaining proper books of accounts: LLPs must maintain accurate and up-to-date records of their financial transactions.
Getting the accounts audited (if applicable): Mandatory if the LLP’s annual turnover exceeds ₹40 lakh or its contribution exceeds ₹25 lakh.
Filing Income Tax Return (ITR): LLPs are required to file their income tax returns annually.
What is the penalty for non-compliance by LLPs?
Penalties for non-compliance can include fines, legal action against designated partners, and even the potential striking off of the LLP. Specific penalties are discussed in the sections below. Non-compliance can also damage the LLP’s reputation and make it difficult to secure funding or partnerships in the future.
What is the due date for filing Form 11 (Annual Return) by LLPs?
Form 11 is due within 60 days of the end of the financial year. The financial year typically ends on March 31st, making the due date for Form 11 filing May 30th.
What happens if an LLP misses the deadline for Form 11 filing?
Late filing of Form 11 attracts a penalty of ₹100 per day of delay. This penalty can accumulate significantly, so timely filing is essential.
When should Form 8 (Statement of Accounts) be filed by LLPs?
Form 8 is due within 30 days of the end of six months of the financial year. This typically translates to filing by October 30th.
Who can digitally sign Form 8 for LLPs?
Form 8 must be digitally signed by the Designated Partners of the LLP. Designated Partners are responsible for the LLP’s compliance.
What is the penalty for late filing of Form 8 by LLPs?
A penalty of ₹100 per day is levied for late filing of Form 8.
Is a tax audit mandatory for all LLPs?
No, a tax audit is not mandatory for all LLPs. It is mandatory only if the LLP’s annual turnover exceeds ₹40 lakh or its contribution exceeds ₹25 lakh.
What is the deadline for LLP tax audit and tax filing?
The due date for a tax audit is typically September 30th of the following financial year. The ITR filing deadline usually falls on July 31st for LLPs not requiring a tax audit, and October 31st for those requiring a tax audit. It’s crucial to consult with a tax professional for the most up-to-date and accurate information, as these dates can sometimes change.
Do LLPs engaged in international transactions have additional filing requirements?
LLPs involved in international transactions might have additional compliance requirements under transfer pricing regulations. It is strongly advised to consult with a tax professional for specific guidance on these complex regulations.
What is the Income Tax Return (ITR) form used by LLPs?
LLPs file ITR using Form ITR-5.
When is the due date for ITR filing by LLPs?
See the response to “What is the deadline for LLP tax audit and tax filing?” above. Remember that the due date depends on whether a tax audit is required.
What are the benefits of LLP Annual Filings?
Timely annual filings help LLPs:
Maintain a good reputation with the MCA: Demonstrates transparency and accountability.
Avoid penalties and legal consequences: Prevents financial losses and legal issues.
Demonstrate financial transparency: Builds trust with stakeholders, including investors and clients.
Facilitate raising capital: A clean compliance record is essential for attracting investors.
Ensure smooth business operations: Keeps the LLP in good standing, allowing for uninterrupted business activities.
Why choose ReturnFilings.Com for LLP annual filings?
Benefits of using a professional service include: saving time, ensuring accuracy, and reducing the risk of errors.
Can ReturnFilings.Com assist with other compliance services for LLPs?
Yes, all related compliance services including GST filing, changes in partners, registered office changes, etc.
What is the penalty for non-compliance with annual filing requirements by LLPs?
Penalties can range from fines for late filing (₹100 per day) to legal action against designated partners and the potential striking off of the LLP. The severity of the penalty depends on the nature and duration of the non-compliance.
How can I get started with LLP annual filings through ReturnFilings.Com?
How does timely filing of annual returns benefit LLPs?
Timely filing benefits LLPs by avoiding penalties, maintaining good standing with the MCA, ensuring transparency, facilitating business operations, and fostering trust with stakeholders.
What are the documents required for LLP annual filing?
Typically includes PAN, Aadhaar of designated partners, financial statements, GST Returns, TDS returns.
How much does LLP annual filing cost?
Costs vary depending on the service provider and the LLP’s specific requirements. Contact us either on e-mail: info@returnfilings.com or on whatsapp: https://wa.me/919910123091
Can I file LLP annual returns online?
Yes, filings are done online through the MCA portal.
What is the process for filing Form 8 for LLPs?
Involves preparing the financial statements, getting them audited if required, and then filing the form electronically with digital signatures.
Is it mandatory to file annual returns for LLPs?
Yes, it is a legal requirement
What happens if I don't file LLP annual returns?
Penalties, legal action, and potential striking off of the LLP
Where can I find the forms for LLP annual filing?
Available on the MCA website
Who is responsible for LLP annual compliance?
Designated Partners are responsible for ensuring compliance
- For further reading, explore the following topics:
- 📘 Limited Liability Partnership (LLP) Registration in India: Legal Process, Advantages & Key Requirements
- 📝 How to Modify LLP Agreement in India: Process, Required Forms & Compliance Checklist
- 📅 Annual Compliance for Private Limited Companies in India: Filing Deadlines & Checklist
- 🏦 NBFC Annual Compliance in India: RBI Filing Requirements, Tax Obligations & Event-Based Compliance