LLP Annual Compliance: Meaning, Due Dates, Documents, Fees & Timelines
What is a Limited Liability Partnership?
Limited Liability Partnership (LLP) is a business structure governed by the Limited Liability Partnership Act, 2008. LLPs are neither a company nor a traditional partnership firm, but they combine characteristics of both. One of the key features of an LLP is limited liability, meaning partners are not personally liable for the LLP’s debts beyond their agreed capital contribution.
An LLP is managed by designated partners, whose rights, duties, and responsibilities are defined in the LLP agreement. LLPs must be established and operated for a lawful purpose, and, similar to a company, they are required to comply with various annual regulatory and compliance obligations.
What are the various LLP Annual Compliances?
An LLP is a hybrid structure, combining features of both a company and a partnership firm. As a result, it is required to adhere to several regulatory compliances to avoid legal consequences. Some of the key compliances applicable to an LLP include:
Filing of Statement of Accounts and Solvency
Every LLP is required to maintain proper books of accounts and submit details of its financial statements, including profits, to the Registrar of Companies (ROC). This is done through the Statement of Accounts and Solvency, which is filed using Form 8. This statement reflects the financial health and solvency of the LLP.
Filing Deadline: Form 8 must be filed within 30 days after the end of six months from the close of the financial year, i.e., on or before October 30th of each financial year.
LLP Annual Return
LLP Annual Compliance
Annual compliance is crucial for the smooth functioning of an LLP. Every LLP is required to file an Annual Return containing details about its management, operations, and partners. This return is submitted using Form 11.
Filing Deadline: The annual return must be filed within 60 days from the end of the financial year, i.e., on or before May 30th each year.
Audit Requirements for LLP
Tax Audit Requirement for LLPs
Under the LLP Act, 2008, and related rules, certain LLPs are required to undergo a tax audit by a practising chartered accountant. Tax audit is mandatory for LLPs with:
Turnover of ₹40 lakh or more; or
Capital contribution exceeding ₹25 lakh
Filing Deadlines:
LLPs required to undergo a tax audit must file their tax returns by September 30th.
Other LLPs must file their tax returns by July 31st.
LLP tax returns are filed using Form ITR-5.
Documents for LLP Annual Compliance
Documents Required for LLP Annual Compliance:
Statement of Assets and Liabilities
Statement of Income and Expenditure
Details of Designated Partners and Employees
Information Related to LLP Affairs
Due Date for LLP Annual Compliance
Important Due Dates for LLP Annual Compliance
Every LLP must be aware of the due dates for annual compliance to avoid penalties and other legal consequences. The key due dates are as follows:
| S.No | Form | Due Date |
|---|---|---|
| 1 | Form 8 (Statement of Accounts & Solvency) | 30th October |
| 2 | Form 11 (Annual Return) | 30th May |
| 3 | Income Tax Return | 31st July |
Fees for LLP Annual Compliance
LLP Annual Compliance Fees
Every LLP must file its Annual Return (Form 11), Income Tax Return, and Statement of Accounts & Solvency (Form 8) on time, along with the applicable fees. The fees for Form 8 and Form 11 are structured based on the LLP’s capital contribution as follows:
| S.No | Contribution | Fee (₹) |
|---|---|---|
| 1 | Up to ₹1,00,000 | 50 |
| 2 | ₹1,00,001 – ₹5,00,000 | 100 |
| 3 | ₹5,00,001 – ₹10,00,000 | 150 |
| 4 | ₹10,00,001 – ₹25,00,000 | 200 |
| 5 | ₹25,00,001 – ₹1,00,00,000 | 400 |
| 6 | Above ₹1,00,00,000 | 600 |
