Introduction

A Limited Liability Partnership (LLP) is a popular business structure in India due to its low compliance requirements and limited liability benefits. However, LLPs are still subject to certain mandatory annual compliances under the Limited Liability Partnership Act, 2008 and Income Tax Act, 1961.

Failing to meet these compliance requirements can result in penalties, fines, and even LLP closure. This guide covers all mandatory filings, deadlines, and compliance requirements to help LLPs avoid legal troubles.

1. Why is Annual Compliance Important for LLPs?

Many business owners mistakenly believe that LLPs have no legal obligations after registration. However, LLPs must comply with certain annual filings, just like Private Limited Companies.

Key Reasons to Ensure Compliance:

✅ Avoid Penalties – Late filings attract hefty fines, ranging from ₹100 per day to ₹5 lakh.
✅ Maintain LLP’s Active Status – Non-compliance can lead to LLP being marked as “Defunct” or struck off by the Ministry of Corporate Affairs (MCA).
✅ Business Credibility – A compliant LLP attracts investors and banks for funding and loans.
✅ Legal Protection – Filing records protect partners from legal liabilities in case of disputes.

2. Mandatory Annual Compliances for LLPs

A. Statement of Accounts & Solvency (Form 8)

✔ Due Date: October 30 every year
✔ Penalty for Late Filing: ₹100 per day (no upper limit)

Every LLP must prepare and file Form 8 annually, containing:

• Statement of Accounts (Profit & Loss and Balance Sheet)
• Declaration of Solvency by the Partners
• Disclosure of Liabilities and Assets

Who needs to file?

• Every LLP, regardless of turnover, must file Form 8.
• It must be digitally signed by at least two designated partners and certified by a CA/CS/CMA.

B. Annual Return Filing (Form 11)

✔ Due Date: May 30 every year
✔ Penalty for Late Filing: ₹100 per day (no upper limit)

LLPs must file Form 11, which contains:

• Details of Partners and their Contribution
• Changes in Partners (if any)
• Total Number of Partners & Profit-Sharing Ratio

Even if an LLP hasn’t conducted any business in the financial year, filing Form 11 is mandatory.

C. Income Tax Return (ITR-5 Filing)

✔ Due Date: July 31 (if audit not required), October 31 (if audit required)
✔ Penalty for Late Filing: ₹5,000 – ₹10,000

All LLPs must file their income tax return using Form ITR-5. If the LLP’s turnover exceeds ₹1 crore, a tax audit is mandatory.

Tax Slabs for LLPs:

• Flat 30% corporate tax rate
• Surcharge (if applicable): 12% (for income above ₹1 crore)
• Health & Education Cess: 4%

D. GST Filings for LLPs (If Registered)

✔ Monthly/Quarterly GST Return Filing (GSTR-1, GSTR-3B)
✔ Annual GST Return (GSTR-9) – Due Date: December 31

LLPs with a turnover above ₹20 lakh (₹40 lakh for goods businesses) must register under GST and file monthly, quarterly, or annual GST returns.

3. Additional Compliance Requirements for LLPs

A. LLP Agreement Amendments (Form 3)

If any changes are made in the LLP Agreement (such as capital contribution, partner admission, or address change), Form 3 must be filed within 30 days of the change.

B. Partner Resignation or Change (Form 4 & 5)

• Form 4 is used for admitting or removing partners.
• Form 5 is used for changing LLP name.

4. Consequences of Non-Compliance for LLPs

Failing to meet annual compliance requirements can result in:

❌ Late Fees & Penalties – ₹100 per day for each delayed MCA filing.
❌ LLP Being Marked as Defunct – MCA can strike off an LLP that fails to comply for two consecutive years.
❌ Legal Action Against Partners – Non-filing of Form 8 (Accounts) can result in partners being held personally liable.
❌ Difficulty in Getting Loans & Investments – Non-compliant LLPs cannot obtain bank loans or raise investments.

5. How ASK ASSOCIATES Helps with LLP Compliance

Managing annual compliance can be overwhelming. ASK ASSOCIATES offers:

✔ Timely Filing of LLP Form 8, Form 11 & ITR-5
✔ Expert GST & Income Tax Return Filing
✔ LLP Agreement Amendments & Partner Changes
✔ End-to-End Legal Support to Avoid Penalties

Ensure 100% compliance with ASK ASSOCIATES – Contact Us Today! 🚀