LLP Compliance
LLP compliance refers to the legal and regulatory requirements that a Limited Liability Partnership must follow, including annual filing of returns, maintaining financial records, conducting audits (if applicable), and adhering to MCA guidelines to avoid penalties and ensure smooth operations.
Annual Compliance Guide for LLPs
By Easy My Tax – Simplifying Your Tax Journey
Maintaining annual compliance is essential for any Limited Liability Partnership (LLP). While LLPs face fewer filing requirements compared to private limited companies, non-compliance can lead to penalties of up to ₹5 lakh. At Easy My Tax, we help your LLP remain compliant, penalty-free, and business-ready.
Key LLP Annual Compliance Requirements
Maintenance of Proper Book of Accounts
LLPs are required to maintain updated and accurate books of accounts. This includes tracking all income, expenses, assets, liabilities, and partner contributions. These records are critical for preparing financial statements and meeting compliance requirements.
Filing of Annual Return - Form 11
All LLPs must file Form 11 with the Ministry of Corporate Affairs (MCA) every year. This return includes details such as the number of designated partners, partner contributions, and other general information.
Filing Deadline:
Form 11 must be filed by May 30th each year (within 60 days after the end of the financial year).
Penalty for Late Filing:
A penalty of ₹100 per day applies from the due date until the actual filing date.
Filing of Statement of Accounts - Form 8
LLPs must file Form 8 to report their financial position, including assets and liabilities. This form has two sections:
- Part A: Statement of Solvency
- Part B: Statement of Income and Expenditure, and the Balance Sheet
Filing Deadline:
Form 8 must be filed by October 30th each year (within 30 days after six months from the end of the financial year).
Signing and Certification:
This form must be digitally signed by two designated partners and certified by a Chartered Accountant, Company Secretary, or Cost Accountant.
Penalty for Late Filing:
A penalty of ₹100 per day will be levied for delays.
Income Tax Return Filing - ITR-5
LLPs must file their annual income tax return using Form ITR-5.
Filing Deadline:
- July 31st if no tax audit is required
- September 30th if a tax audit is applicable
Tax Audit Requirement
LLPs must get their accounts audited if:
- Annual turnover exceeds ₹40 lakh
- Capital contribution exceeds ₹25 lakh
Revised Limit:
From AY 2021–22 onwards, the audit threshold is ₹5 crore if:
- Cash receipts are less than 5% of total receipts, and
- Cash payments are less than 5% of total payments
Filing Deadline (with audit):
September 30th
International Transactions - Form 3CEB
LLPs involved in international or specified domestic transactions must file Form 3CEB. This form must be certified by a Chartered Accountant.
Filing Deadline:
November 30th
LLP Annual Compliance Calendar
| Form Type | Description | Due Date | Filed With |
|---|---|---|---|
| Form 11 | Annual Return | 30th May | Registrar of Companies |
| Form 8 | Statement of Accounts & Solvency | 30th October | Registrar of Companies |
| ITR-5 | Income Tax Return | 31st July (or 30th September, if audit required) | Income Tax Department |
| Tax Audit | Audit Report | 30th September | Income Tax Department |
| Form 3CEB | International Transactions (if applicable) | 30th November | Income Tax Department |
Benefits of Staying Compliant
Higher Credibility
Compliant LLPs have better credibility with banks, investors, and clients.
Financial Track Record
Accurate and timely filings establish a strong financial history.
Avoid Penalties
On-time filing keeps your LLP active and prevents additional fees or legal issues.
Easy Conversion or Closure
Proper annual filings make it easier to convert your LLP or close it when needed.
Why Choose Easy My Tax
Easy My Tax makes the LLP compliance process simple and stress-free. Our expert team helps you with documentation, digital signatures, certification, and timely filing. Let us handle your annual LLP requirements while you focus on growing your business.
Get in touch with Easy My Tax to start your LLP compliance process today.
