Annual compliance of Limited Liability Partnership

“Limited Liability Partnership” means a partnership formed and registered under Limited Liability Partnership Act, 2008. In general terms, LLP is a Corporate entity and governed by the laws and regulation prescribed by the Limited Liability Partnership Act, 2008 (LLP Act, 2008).

Mandatory Compliances for an LLP (Limited Liability Partnership):

All LLPs registered with the Ministry of Corporate Affairs need to file Annual Returns and Statement of Accounts for every Financial Year. It is mandatory for a LLP to file a return irrespective of whether it has done any business. There are three mandatory compliance requirements to be followed by LLPs.

1. Filing of Annual Return (Form 11)

2. Filing of Statement of the Accounts or Financial Statements (Form 8)

3. Filing of Income Tax Returns

 

Form 8

Form 8 must be filed within 30 days from the end of 6 months of the financial year along with some prescribed fee.

Form 11

All LLPs should file this form within 60 days from the closure of the financial year with the prescribed fee.

 

Income Tax Return Filing

All LLPs registered in India are required to file income tax return each year, irrespective of revenue or profits. Hence, even an LLP that is dormant not having undertaken any transaction must file income tax return.   

Penalty or Consequences for not filing Form 11 and Form 8

Per day penalty of Rs. 100 till the filing is completed. (Separately for both forms)

Note: LLP whose turnover exceeded Rs. 40 Lakhs or whose contribution exceeded Rs. 25 Lakhs are required to get their accounts audited by a practising Chartered Accountant.