llp annual compliance
Limited Liability Partnerships (LLPs) in India are required to adhere to specific annual compliance requirements to maintain their legal standing and avoid penalties. This article provides an overview of the key compliance obligations and the necessary legal documents for LLPs in India.
Key Annual Compliance Requirements
- Form 11: Annual Return
- Purpose: To report any significant changes in the LLP during the financial year, such as changes in designated partners or partners.
- Due Date: May 30th of every year.
- Details Required:
- Information about LLPs or companies in which partners/designated partners are directors or partners.
- Total contribution by the partners of the LLP.
- Penalties imposed or compounding offenses committed during the financial year.
- Form 8: Statement of Account & Solvency
- Purpose: To declare the financial position of the LLP to the Registrar of Companies (ROC).
- Due Date: October 30th of every year.
- Details Required:
- Disclosure under the Micro, Small, and Medium Enterprises (MSME) Development Act, 2006 (Mandatory).
- Statement of contingent liabilities not provided for, if any (Optional).
- Audit Requirement: Audit of books is mandatory if the LLP’s turnover exceeds ₹40 lakhs or if the contribution exceeds ₹25 lakhs.
- Income Tax Return (ITR-5)
- Purpose: To report the LLP’s income, deductions, and tax liabilities for the year.
- Due Date: July 31st (if no audit) or October 31st (if audit required).
- Details Required:
- Financial statements, including the Profit & Loss Account and Balance Sheet.
Legal Documents Required for Annual Compliance
- LLP Agreement and Amendments (if any)
- The LLP agreement outlines the roles, responsibilities, and income-sharing ratios among partners. Any amendments to the agreement must be documented and submitted.
- Financial Statements
- Includes the Profit & Loss Account, Balance Sheet, and Statement of Accounts. These documents must be certified by a practicing Chartered Accountant (CA), Company Secretary (CS), or Cost Accountant (CMA).
- Details of Partners and Contributions
- Information about the partners, their contributions, and any changes in the partnership structure during the financial year.
- Digital Signature Certificate (DSC)
- Required for digitally signing the forms submitted to the Ministry of Corporate Affairs (MCA).
- Director Identification Number (DIN)
- Required for the designated partners of the LLP.
Penalties for Non-Compliance
Failure to comply with the annual filing requirements can result in significant penalties:- Form 11 & Form 8: ₹100 per day per form until compliance is achieved.
- Income Tax Late Filing: ₹5,000 penalty if filed after the due date.
