Mandatory Annual LLP Compliances

What is Mandatory Annual LLP Compliances?

Apart from Post Incorporation Compliances, there are certain compliances which LLPs are mandatorily required to file annually. Thus, LLPs are legally bound to observe these compliances and non-compliances of such requirements shall lead to heavy penalties and fines.

Read more about LLP Compliances.

What are Mandatory Annual LLP Compliances?

Following are the major Mandatory Annual LLP Compliances –

1. Filing of Annual Return – Form 11

One of the takeaway mandatory annual compliance for LLPs is the filing of Annual Return in Form 11 with Registrar of Companies within 60 days from the end of financial year.

Annual Return is basically a Summary statement of partners of LLP.

Due-Date for filing Form 11 –

Financial year of LLPs ends on 31st March every year. Thus, Form 11 shall be filed on or before 30th May every year.

Penalty for non-filing of Annual Return –

In case of non-filing of Form 11, LLP shall be liable to pay the penalty of Rs. 100 per day until the form is filed.

2. Statement of Account and Solvency – Form 8

LLPs are mandatorily required to file Statement of Account and Solvency in Form 8 with ROC within 30 days from the end of 6 months of the concerned financial year.

Essentials for Form 8:

It shall be digitally signed by 2 Designated Partners.
It shall be certified by a Chartered Accountant, Auditor or by the Accountant of the Company.
It must contain the Statement of assets and liabilities of LLP and Statement of Income and Expenditure of the financial year.

Penalty against non-filing:

In case of non-compliance, the LLP shall be liable to pay penalty of Rs. 100 per day until the form is filed.

3. Books of Account–

Next Annual Compliance for LLPs is to prepare and maintain correct and proper Books of account by following cash or accrual system of accounting with a view to keep a record of all financial truncations of the LLP. Thereafter, LLPs have to make a financial report on the financial position of the LLP at the end of the financial year (before 31st March).

Then, LLPs have to submit such report in the registered office whenever required.

Penalty for Non-Compliance –

If LLP fails to maintain such Books of account then it shall be punishable with a fine which shall not be less than Rs. 25,000 and which may extend up to Rs. 5,00,000. Moreover, Designated partners shall also be punished for the same with fine which shall not be less than Rs. 10,000 and which may extend up to Rs. 1,00,000.

4. Mandatory Statutory Audit –

When the capital contribution of LLP exceeds the prescribed limit then such LLPs are mandatorily required to appoint Chartered Accountants in practice as Auditors with a view to get the accounts audited.

5. Filing of Income Tax Returns – Form ITR 5

Every LLP has to file Income Tax Return in Form ITR 5 on or before 31st July every year.

Due date for filing ITR –

When Tax Audit is mandatory	30th September
When Tax Audit is not required	31st July every year

LLPs that are engaged into international transactions are required to file Form 3CEB on or before 30th November every year.

6. Designated Partners KYC – DIR 3

As per the company law, every Director is allotted with the Director Identification Number (DIN). The Partners of the LLP have to submit their KYC details by filling DIR 3 KYC form with MCA in next preceding year. Along with the form enclosed below are a few documents required to be submitted –

Copy of PAN and Aadhar Card of the Partner
Email I’d and Mobile Number verified through One Time Password (OTP) in the e-form
Copy of Voter Identification Card
Details of Nationality & Citizenship

List of Mandatory Annual LLP Compliances –

Compliances	Forms	Due Date
Annual Return	Form 11	within 60 days from the end of financial year
Statement of Account and Solvency	Form 8	within 30 days from the end of 6 months of the concerned financial year
Books of Accounts		at the end of the financial year
Income Tax Return	ITR 5	on or before 31st July every year.
Designated Partners KYC	DIR-3