LLP Annual Compliance Checklist
LLPs are simpler to run than private limited companies, but they carry mandatory annual compliance obligations. Missing them does not just attract fines - there is no maximum cap on the late fee, meaning an LLP two years behind on filings can accumulate over ₹1.5 lakh in penalties before professional costs.
Annual Compliance Calendar
| Obligation | Form | Due Date | Who Must File |
|---|---|---|---|
| Statement of Account and Solvency | Form 8 | 30 October | All LLPs |
| Annual Return | Form 11 | 30 May | All LLPs |
| Income Tax Return | ITR-5 | 31 July (non-audit) / 30 September (audit) | All LLPs |
| Tax Audit Report | Form 3CB/3CD | By 30 September | If turnover exceeds ₹1 crore |
Form 8 - Statement of Account and Solvency
Form 8 is a financial summary filed with the MCA. It contains the LLP’s statement of solvency (a declaration that the LLP can pay its debts), total assets, total liabilities, and capital contributions as at the end of the financial year (31 March).
- Due date: 30 October each year (for the financial year ending 31 March).
- Must be certified by at least 2 designated partners.
- Must be digitally signed by a practising Chartered Accountant or Company Secretary.
- Late fee: ₹100 per day from 31 October, with no cap.
Form 11 - Annual Return
Form 11 is the annual return filed with the MCA. It contains details of the LLP’s partners, designated partners, changes during the year (additions, removals), and the total capital contribution as at the end of the year.
- Due date: 30 May each year.
- If total capital contribution exceeds ₹5 lakh, Form 11 must be certified by a practising Company Secretary.
- Below ₹5 lakh contribution: certification by a CA is acceptable.
- Late fee: ₹100 per day from 31 May, with no cap.
Income Tax Filings
An LLP is a separate taxable person - it files its own income tax return. Partners are taxed separately on their share of profits drawn from the LLP.
- Return form: ITR-5. The LLP files this, not the partners (partners file separately in their personal ITR).
- Non-audit LLPs: Due date is 31 July (if no tax audit requirement).
- Audit cases: Due date is 30 September (applies when a tax audit is mandatory - see below).
- Transfer pricing: If the LLP has international transactions, the due date extends to 30 November.
Audit Requirement
A statutory audit under the LLP Act is mandatory when either:
| Threshold | Limit |
|---|---|
| Annual turnover | Exceeds ₹40 lakh |
| Partners' capital contribution | Exceeds ₹25 lakh |
A tax audit under the Income Tax Act (Section 44AB) is additionally required if turnover exceeds ₹1 crore (or ₹10 crore if cash transactions are below 5% of total transactions). Both audits are typically done together by the same CA.
Late Fees and Consequences
No cap on late fees - the penalty grows every day
Unlike many MCA filings for companies (which have a maximum penalty), the LLP Act imposes ₹100 per day per form with no maximum cap. An LLP that misses Form 8 and Form 11 for 2 years accumulates approximately ₹1.5 lakh in late fees for those 4 filings alone, before professional fees.
| Scenario | Penalty |
|---|---|
| Form 8 filed 30 days late | ₹3,000 (30 days × ₹100) |
| Form 8 filed 1 year late | ₹36,500 (365 days × ₹100) |
| Form 11 filed 1 year late | ₹36,500 |
| Both forms filed 2 years late | ≈ ₹1,46,000 in late fees alone |
Persistent non-filing triggers additional consequences beyond late fees: the MCA can strike off the LLP’s name from the register, and all designated partners face disqualification and prosecution.
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