LLP Annual Compliance and Filings

Limited Liability Partnerships (LLPs) offer the benefits of a partnership structure with the advantage of limited liability for its partners. However, LLPs are also required to fulfill certain annual compliance obligations under the LLP Act, 2008, and other applicable laws.

Ensuring timely and accurate compliance helps LLPs maintain their active status, avoid penalties, and build credibility with stakeholders.

Overview of LLP Annual Compliances

The following are the key compliances that every LLP is required to complete annually:

1. Filing of Annual Return (Form 11)

An LLP must file its Annual Return in Form 11 with the Registrar of Companies (ROC) every year.
This filing contains details of the number of partners, changes in partnership, and other basic information about the LLP.

  • Due Date: 30th May of each financial year
  • Applicability: Mandatory for all LLPs, irrespective of turnover

2. Filing of Statement of Account and Solvency (Form 8)

Every LLP is required to prepare and file a Statement of Account and Solvency in Form 8.
This statement includes the financial position of the LLP and a declaration regarding its solvency.

  • Due Date: 30th October of each financial year
  • Requirements: Books of accounts must be maintained; an audit is mandatory if turnover exceeds prescribed limits (currently ₹40 lakh turnover or ₹25 lakh contribution)

3. Income Tax Return (ITR) Filing

LLPs must file an annual Income Tax Return under the Income Tax Act, 1961, even if they have no business transactions during the year.

  • Due Date:
    • 31st July if Tax Audit is not applicable
    • 31st October if Tax Audit is applicable
  • Audit under Section 44AB is applicable if turnover exceeds the specified threshold limit.

4. Tax Audit and Other Specific Filings

If the LLP crosses the turnover threshold prescribed under the Income Tax Act, a Tax Audit is mandatory.

Additionally, LLPs may have to comply with:

  • Filing of GST Returns (if registered under GST)
  • TDS Returns (if liable for TDS deductions)
  • Other event-based compliances such as changes in partners, contribution, or registered office

Importance of Timely Compliance

Regular compliance by LLPs ensures:

  • Maintenance of active status and good standing with regulatory authorities
  • Avoidance of hefty penalties and late filing fees
  • Increased trust among clients, vendors, and investors
  • Readiness for future fundraising, loans, and strategic business activities

Failure to comply can result in heavy penalties starting from ₹100 per day, without any cap, and can even lead to striking off the LLP by authorities.

Structured Approach for LLP Compliance

A systematic approach to compliance — supported by proper record-keeping, timely filing, and proactive monitoring of legal requirements — helps LLPs operate smoothly and focus on their business growth.

Professional assistance can aid in:

  • Understanding the specific compliance requirements applicable
  • Planning and scheduling filings well within due dates
  • Ensuring accuracy and completeness of filings to avoid future issues