What is LLP Annual Compliance?
LLP Annual Compliance is a yearly legal process where every LLP must file key forms LLP Act, 2008, with the Ministry of Corporate Affairs (MCA) and the Income Tax Department.These include forms like Form 11, Form 8, Income Tax Return (ITR-5), and DIR-3 KYC for designated partners.
Whether your LLP is active or not, these filings are mandatory. They help maintain the LLP’s legal status with the Ministry of Corporate Affairs (MCA) and avoid penalties like ₹100 per day per form. Staying compliant also builds trust with clients, partners, and regulators.
Who Needs to File LLP Annual Compliance?
As per MCA guidelines, the following entities are required to file annual compliance for LLPs in India:
- All registered LLPs: Regardless of their turnover, size, or whether they had any business activity during the financial year.
- LLPs with zero turnover or inactive status: Even LLPs with no business operations must file Form 11 and Form 8 annually to avoid penalties.
- LLPs with turnover above ₹40 lakhs or contribution above ₹25 lakhs: These LLPs must get their accounts audited and attach audited statements with Form 8.
- Designated Partners of LLPs: All designated partners must file DIR-3 KYC annually to avoid disqualification under MCA rules.
- All LLPs liable to pay Income Tax: Income Tax Return (ITR-5) must be filed by every LLP- whether profit-making or not.
List of Mandatory Annual Filings for LLPs
Every LLP in India must file a few essential forms each financial year to remain legally compliant under the LLP Act, 2008 and Income Tax Act.
- Form 11- LLP Annual Return: This form gives details of all designated partners and changes made during the financial year. It must be filed with the ROC even if the LLP has not done any business.
- Form 8 – Statement of Account & Solvency: It contains the LLP’s financial position and confirms that it can meet its debts. Filing this form annually is mandatory to avoid penalties.
- ITR-5 – Income Tax Return: Every LLP must file this with the Income Tax Department, even if there is no profit or turnover. It shows the LLP’s income and tax calculation for the year.
- DIR-3 KYC – Partner KYC Form: All designated partners must update their KYC details every year with the MCA. Failure to file can result in deactivation of the partner’s DIN.
- Audit Report (If Applicable): If an LLP’s turnover exceeds ₹40 lakhs or contribution exceeds ₹25 lakhs, a financial audit is required.The audit must be done by a Chartered Accountant before filing ITR.
Due Dates and Late Filing Penalties
Missing LLP due dates can lead to heavy penalties and legal complications. Here’s an updated list as per MCA and Income Tax norms:
- Form 11 – Due Date: 30th May of every year: Delay attracts ₹100 per day as penalty with no upper limit.
- Form 8 – Due Date: 30th October of every year: Late filing also incurs ₹100 per day penalty from MCA.
- ITR-5 – Due Date: 31st July (Non-audited) / 31st October (Audited LLPs): Delay leads to late fees under Section 234F and may invite interest and scrutiny.
- DIR-3 KYC – Due Date: 30th September: Non-filing results in deactivation of DIN and requires a penalty of ₹5,000 for reactivation.
- Audit Report – Due Before ITR Filing: For audited LLPs, audit must be completed before filing ITR. No direct late fee, but delay affects timely tax filing.
Difference Between ROC Compliance & Income Tax Return
Many LLP owners confuse ROC filings with Income Tax Return filing, but they are two separate compliance requirements under different authorities. Here’s a quick comparison to help you understand the key differences.
ROC Compliance vs Income Tax Return
| Particulars | ROC Compliance (LLP) | Income Tax Return (LLP) |
| Governing Authority | Ministry of Corporate Affairs (MCA) | Income Tax Department |
| Key Forms | Form 11, Form 8, DIR-3 KYC | ITR-5 |
| Applicability | Mandatory for all LLPs, even if inactive | Mandatory for all LLPs, even if no income |
| Filing Frequency | Annually | Annually |
| Purpose | To disclose partner details and financials to MCA | To report income, loss, and tax to IT Dept. |
| Due Dates | Form 11 – 30 May, Form 8 – 30 October, KYC – 30 Sept | 31 July (Non-audited) / 31 Oct (Audited) |
| Penalty for Delay | ₹100 per day per form (no upper limit) | ₹1,000 to ₹10,000 u/s 234F + interest |
| Audit Requirement | Applicable if turnover > ₹40L or contribution > ₹25L | Same as ROC; required for high turnover LLPs |
Documents Required for Filing
Before filing any LLP forms, keep these key documents handy to ensure a smooth compliance process.
- PAN of LLP: Required for income tax filings and identification of the LLP with government departments.
- Certificate of Incorporation: Acts as proof that your LLP is legally registered with the MCA.
- LLP Agreement: Details about partners, roles, and profit sharing, needed especially for ROC filings.
- Bank Statements: Helps in preparing Form 8 and assessing the LLP’s financial status.
- Financial Statements: Includes balance sheet and profit-loss statement needed for compliance and tax filing.
- Digital Signature Certificate (DSC): Used to digitally sign and submit ROC forms like Form 8 and 11.
- KYC of Partners: Personal ID proofs for DIR-3 KYC and to keep the DIN active.
- Audit Report (if applicable): Only needed if turnover exceeds ₹40 lakhs or contribution exceeds ₹25 lakhs.
Common Mistakes to Avoid
Many LLPs unknowingly make these errors while filing annual forms, leading to penalties or rejections.
- Missing filing deadlines: MCA charges ₹100 per day for each delayed form like Form 8 or 11.
- Thinking no business means no filing: Even non-operational LLPs must file their annual forms.
- Skipping DIR-3 KYC: This results in DIN deactivation, stopping partners from working legally.
- Expired DSC: An invalid digital signature will prevent form submission on MCA portal.
- Filing old versions of forms: Outdated forms may be rejected, causing delays.
- Ignoring audit rule: LLPs above the prescribed limit must get accounts audited before filing.
Legal & Financial Consequences
Non-compliance with LLP rules doesn’t just attract fines, it can impact your business status and legal standing.
- Late fees on ROC forms: ₹100 per day for Form 8 and 11, with no upper limit.
- DIN deactivation: Not filing DIR-3 KYC leads to blocked partner identity.
- LLP marked as defaulter: MCA may tag your LLP as non-compliant and restrict operations.
- ITR penalties: Delayed ITR-5 filing attracts late fees under Section 234F.
- Difficulty in getting loans or tenders: Poor compliance affects credibility with banks and authorities.
- Possible legal action: In continuous default, the LLP can face legal proceedings or strike-off.
Role of EbizFiling in Simplifying LLP Compliance
EbizFiling helps LLPs manage all compliance steps with ease, from filing forms to avoiding penalties.
- Expert Guidance: Our team helps you file every form accurately and on time.
- Due Date Alerts: We notify you of upcoming ROC and tax filing deadlines.
- Complete Filing Support: We handle MCA filings, ITR, and partner KYC under one roof.
- Document Check: All required documents are verified to avoid mistakes.
- Cost-Effective Plans: We offer budget-friendly compliance packages for LLPs of all sizes.
Conclusion
LLPs must follow annual compliance to avoid legal and financial setbacks. Filing on time builds credibility and keeps your LLP active. EbizFiling helps you complete the entire process with expert support and timely guidance.
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LLP annual filing for startups
Importance of LLP Certificate of Registration
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