LLP Annual Compliance
A Limited Liability Partnership (LLP) is a flexible and popular business structure in India. However, every LLP registered under the LLP Act, 2008 must comply with certain annual compliance requirements irrespective of its turnover or profit.
Non-compliance can attract heavy penalties and affect the credibility of the business.
What is LLP Annual Compliance?
LLP Annual Compliance refers to the mandatory filings and returns that an LLP must submit each financial year to the Ministry of Corporate Affairs (MCA) and the Income Tax Department.
LLP Annual Compliance Requirements
| Compliance Activity | Form / Filing | Due Date | Applicability |
|---|---|---|---|
| Statement of Accounts & Solvency | Form 8 | 30th October every year | Filed even if LLP has no revenue |
| Annual Return | Form 11 | 30th May every year | Contains details of partners and contribution |
| Income Tax Return | ITR-5 | 31st July (No Audit) / 30th Sept (Audit) | Filed with Income Tax Department |
| Tax Audit (if applicable) | As per Income Tax Act | If turnover exceeds ₹40 lakhs or contribution exceeds ₹25 lakhs | Mandatory audit of accounts |
Documents Required
- LLP Agreement
- Certificate of Incorporation
- Partner details (PAN, Aadhaar, DSC)
- Books of Accounts & Financial Statements
- Audit Report (if applicable)
Process of LLP Annual Compliance
- Maintain Books of Accounts throughout the year
- Prepare Statement of Accounts & Solvency (Form 8)
- File Annual Return (Form 11) with MCA
- File Income Tax Return (ITR-5) as per timelines
- Conduct Audit if turnover/contribution exceeds threshold
Benefits of LLP Annual Compliance
- Avoids penalties of ₹100 per day for delayed filing
- Increases credibility with clients, banks, and investors
- Ensures smooth business operations without legal hurdles
- Protects partners from personal liability risks
- Builds trust and corporate image for long-term growth
Consequences of Non-Compliance
- Penalty of ₹100 per day per form until filed
- Inability to close or wind-up LLP without clearing penalties
- Loss of credibility with authorities and business stakeholders
Certification
