LLP is separate legal entity recorded under the Ministry of Corporate Affairs (MCAs) in India. Therefore, it should be most limited of two persons as partners, where one has to be mandatorily an Indian citizen and a resident. Partners have responsibility to maintain a proper book of accounts and file an annual return with the MCA every single financial year.
After Limited Liability Partnership (LLP) is established, the returns should be filed regular for keeping compliance and escape considerable fines under the law for non-compliance. A LLP has only limited compliance to be get ahead every year which is surely lower as compared to the compliance needed by private limited companies. However, the fines seem to be reasonably huge. While non-compliance might only impose a Private Limited company INR 1 lakh in terms of fines, it might levy fines on LLP up to INR 5 lakh.
Limited Liability Partnership is a separate legal entity, so it is the duty of the designated partners to concurrently maintain a proper book of accounts and filing an annual return in Ministry of Corporate Affairs (MCA) each year. Limited Liability Partnership is not required to audit their ‘books of account except’ where their annual turnover is more than INR 40 lakhs or if the investment or contributions to the company is more than INR 25 lakh. So, for LLP it is not mandatory to get their books of account audited if it accomplishes the condition as declared above, making the process of annual filing simpler.
Limited Liability Partnership (LLP) is required to file their Statement of Account & Solvency within 30 days from the end of 6 months of the each financial year and Annual Return within 60 days from the end of the financial year. Unlike Company, Limited Liability Partnership is mandatorily required to maintain the financial year, from 1st April to 31st March. Therefore, the Statement of Account & Solvency(Form-8) is to be filed on or before 30th October of each financial year, and the annual return (Form-11) for LLP is due on 30th May every year, even if the LLP has not completed any business in that specific financial year. Some of the annual filings are mandatory whether the LLP has begun some business or not.
Every LLP has to file Income Tax Returns (ITR-5) each year, irrespective of its transactions. It must be filed by LLP on or before 31st July (if not covered under audit) or 30th September (if covered under audit).
LLP form 11, Form 8 & Income tax return all are the main compliances.
LLP Annual Filing Compliance Schedule for your reference:
Form-8 (Filing of Statement of Accounts) – Due date is 30th October and it’s filed with Registrar of Companies.
Form-11 (Filing of Annual Returns) – Due date is 30th May and it’s filed with Registrar of Companies.
ITR-5 (Income Tax Returns) – Due date is 31st July (or 30th September, if tax audit is mandatory) and it’s filed with Income tax department.
Audit (Tax Audit if applicable) – Due date is 30th September and it’s filed with Income tax department.
Penalties imposed for late filing of any of the above forms are INR. 100/- per day.