Annual filings for Limited Liability Partnership (LLP) in India
For Limited Liability Partnerships (LLPs), annual filings for Limited Liability Partnership are vital to ensure the LLP maintains its legal standing and avoids hefty penalties for non-compliance. While LLPs generally have lighter compliance obligations compared to Private Limited Companies, failing to meet these requirements can result in significant fines of up to INR 5 lakh.
At FilingIn, we understand the importance of adhering to LLP compliance standards and provide expert services to help LLPs meet their obligations efficiently and effectively.
LLP Compliance Requirements:
LLPs are treated as distinct legal entities, and compliance is the responsibility of the Designated Partners. The key compliance obligations for an LLP include:
Maintenance of Proper Books of Accounts
Filing of Annual Return (Form 11)
Filing of Statement of Accounts (Form 8)
Filing of Income Tax Return (ITR - 5)
Filing of Tax Audit (if applicable)
Ensuring compliance with these requirements not only preserves the LLP's legal status but also fosters financial transparency and accountability.
- Enhanced Credibility: Timely filing of annual returns and accounts boosts your LLP's credibility, improving its chances of securing loans and partnerships.
- Track Record of Financial Health: Regular compliance provides a financial track record, which is attractive to potential investors and business partners.
- Stay Active and Penalty-Free: Consistent compliance keeps your LLP active and avoids penalties or the risk of dissolution.
- Simplified Conversion or Closure: Regular filings simplify the process if you wish to convert your LLP into another business structure or close the business.
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Form Type
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Description
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Due Date
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To be Filed With
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If a tax audit is required, the tax return must be filed by September 30th. If no audit is required, the tax return is due by July 31st.
- International Transactions:
LLPs engaged in international transactions or specified domestic transactions must file Form 3CEB with the Income Tax Department by November 30th.
Maintenance Of Proper Books Of Accounts:
LLPs must maintain accurate and up-to-date financial records. These records should reflect the LLP’s financial transactions, including profits, expenses, assets, and liabilities. Proper bookkeeping is essential for assessing the LLP's financial health.
Filing of Annual Return - LLP Form 11:
LLPs are required to file an annual return with the Ministry of Corporate Affairs using Form 11. This form provides essential details about the LLP, including the number of designated partners, partner information, and contributions from partners.
- Filing Deadline: Form 11 must be filed within 60 days after the conclusion of the financial year, i.e., by May 30th.
- Penalty for Late Filing: Failure to file Form 11 on time results in a daily penalty of 100 until the form is filed.
Filing of Statement of Accounts – LLP Form 8:
LLPs must file a Statement of Accounts & Solvency using Form 8. This statement includes details about the LLP’s assets, liabilities, and financial health.
- Filing Deadline: Form 8 must be filed within 30 days after the conclusion of the first six months of the financial year, i.e., by October 30th.
- Penalty for Late Filing: Failure to file Form 8 on time results in a daily penalty of 100.
Tax Filing and Audit Requirements:
LLPs are subject to certain tax filing obligations, including the filing of Income Tax Returns (ITR - 5) and a Tax Audit when applicable.
- Tax Audit Requirement: LLPs with annual turnover exceeding Rs. 40 lakhs or contributions over Rs. 25 lakhs are required to undergo a tax audit by a Chartered Accountant.
Income Tax Return (ITR - 5):
LLPs must file their Income Tax Return using Form ITR-5. The filing deadline is July 31st unless a tax audit is required, in which case the deadline is extended to September 30th.
At FilingIn, we specialize in streamlining the LLP annual filing process. Our team of experts will:
- Assist you in preparing accurate and timely filings for Form 11 and Form 8
- Ensure your LLP meets all tax filing and audit requirements
- Help maintain proper books of accounts and financial statements
- Provide you with dedicated support to handle all compliance matters seamlessly
We focus on ensuring that your LLP adheres to all legal requirements so you can focus on growing your business.
Frequently Asked Questions in India
What are the compliance requirements for an LLP?
The key compliance requirements for an LLP include:
- Maintenance of proper books of accounts
- Filing of annual return (Form 11)
- Filing of statement of accounts (Form 8)
- Filing of income tax return (ITR-5)
- Tax audit (if applicable)
- Timely submission of forms to the Registrar of Companies and the Income Tax Department
What is the deadline for filing Form 11 (Annual Return) for an LLP?
Form 11, the annual return for an LLP, must be filed within 60 days from the end of the financial year, i.e., by May 30th.
What is the penalty for late filing of LLP annual returns?
The penalty for late filing of Form 11 (annual return) and Form 8 (statement of accounts) is Rs. 100 per day from the due date until the actual filing is completed.
What is the deadline for filing Form 8 (Statement of Accounts) for an LLP?
Form 8 must be filed within 30 days from the end of the first six months of the financial year, i.e., by October 30th.
Do I need to file an Income Tax Return for my LLP?
Yes, LLPs are required to file their Income Tax Return using ITR-5 annually. The filing deadline is July 31st, unless a tax audit is required, in which case the deadline extends to September 30th.
What is a tax audit, and is it required for an LLP?
A tax audit is required if the LLP has a turnover exceeding Rs. 40 lakh or capital contributions above Rs. 25 lakh. The books of account must be audited by a Chartered Accountant, and the tax audit report must be filed by September 30th.
What happens if my LLP misses the compliance deadlines?
Failing to meet compliance deadlines may result in substantial penalties, including a daily fine of Rs. 100 for late filings, and your LLP could be at risk of being declared defunct by the Registrar of Companies.
What are the benefits of filing the annual returns and accounts on time?
Timely filing enhances your LLP’s credibility, helps maintain good standing, attracts potential investors or partners, prevents penalties, and simplifies the process of converting or closing the LLP.
Is it necessary for all LLPs to have a tax audit?
A tax audit is required only for LLPs with an annual turnover exceeding Rs. 40 lakh or contributions above Rs. 25 lakh. However, from Assessment Year 2021-22 onwards, if the LLP’s turnover exceeds Rs. 5 crore, a tax audit may not be necessary under certain conditions.
How can FilingIn help with LLP compliance?
FilingIn assists LLPs by handling all their compliance needs, including the preparation and filing of annual returns (Form 11 and Form 8), tax filings (ITR-5), and ensuring timely submission to avoid penalties. Our team ensures that your LLP remains compliant with all legal requirements, saving you time and preventing potential fines.
