Home / Limited Liability Partnership Compliance (LLP)

Updated on 26 Jul 2021  9.00 AM IST | 4 min read

An Overview to Limited Liability Partnership Compliance

Limited liability partnership needs to maintain compliances to avoid heavy penalties under non-compliance law. LLP should submit/file income tax return to the income tax department and annual returns to the ministry of corporate affairs (MCA). In case of LLP, there is no need to audit books of accounts unless the annual turnover of an LLP is more than Rs.40 Lakhs or contribution is more than Rs.25 Lakhs.

LLP enjoys the benefit of separate legal entity and perpetual succession. An LLP has a fewer compliance requirements in comparison to a company. Limited liability partnership needs to file their annual returns in form-11 within 60 days from the end of the financial year and statement of accounts & solvency in form-8 within 30 days from the end of 6 months of the financial year.


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Document Preparation

Application Drafting

Government Fees

Documents Required for Annual Compliances For LLP

  • Invoices of purchases & sales during a financial year
  • Invoices of expenses incurred during a financial year
  • Bank statements for all bank accounts in the name of LLP in a financial year.
  • Credit card statements for expenses incurred by partners on behalf of LLP.
  • Copy of GST return filed (If any)
  • Copy of TDS challans deposited
  • Copy of TDS return filed

Procedure For Annual Compliance Fulfillment

  1. Maintain proper books of accounts
  2. Preparation & filing of balance sheet
  3. Get your accounts certified by CA if your turnover is above Rs.40 Lakhs
  4. Filing of form 8 and form 11 with registrar of companies (ROC)
  5. Filing of income tax return to the income tax department.

Penalty For Non-Compliance

  • Late filing or non-filing of LLP annual return or statement of accounts & solvency before the due date will attract a penalty of Rs.100 per day.
  • LLP cannot be closed without filing of the tax return.
  • An LLP penalty doesn’t have a maximum limit. It can be of any amount.
  • Therefore, it is best that you file your LLP annual returns or statement of accounts & solvency in time to avoid heavy penalty.

Non-compliance will leads to heavy penalty of minimum Rs.25000 and maximum Rs.5 Lakhs in case of LLP which is much more than in comparison to private limited company i.e. Rs.1 Lakh. Fine of minimum Rs.10000 is also charged from every partner of LLP separately which may extend to maximum of Rs.100000.


Limited Liability Partnership Compliance (LLP) FAQ’S

Every LLP has to file “Statement of accounts and solvency in form-8 with the registrar of companies every year. Every LLP is under obligation to reflect the true & fair picture of their accounts by way of annual returns.
Every LLP has to mandatorily file annual returns with registrar of companies every year.
Form-8 is used to file “statement of accounts & solvency” and form-11 is used to file annual returns.
Limited liability partnership needs to file their “annual returns” within 60 days from the end of the financial year and “statement of accounts & solvency” within 30 days from the end of 6 months of the financial year.
Late filing or non-filing of LLP annual return or statement of accounts & solvency before due date will attract a penalty of Rs.100 per day.
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Due Dates

  • Due date for deposit of Tax deducted/collected for the month of June, 2021. However, all sum deducted/collected by an office of the government shall be paid to the credit of the Central Government on the same day where tax is paid without production of an Income-tax Challan

    Jul 07th ,2021
  • Due date for deposit of TDS for the period April 2021 to June 2021 when Assessing Officer has permitted quarterly deposit of TDS under section 192, 194A, 194D or 194H.

    Jul 07th ,2021
  • GSTR-7 Summary of Tax Deducted at Source (TDS) and deposited under GST laws

    Jul 10th ,2021
  • GSTR-8 Summary of Tax Collected at Source (TCS) by e-commerce operators under GST laws

    Jul 10th ,2021
  • GSTR 1 for June 2021 (turnover more than INR. 1.50 Crore)

    Jul 11th ,2021
  • GSTR-6 Details of Input Tax Credit (ITC) received and distributed by an Input Service Distributor (ISD)

    Jul 13th ,2021