Limited Liability Partnership was introduced by the Limited liability Partnership act 2008, it is a corporate business vehicle that is meant to be an improved version over a registered partnership where there was no way of limiting a partner’s liability. Whereas the Limited Liability Partnership brings all the goodies on to the table with an easy and cost-friendly incorporation process, keeping all the positive points in mind many businesses built their business structures using the Limited Liability Partnership form of business. The LLP may be a cost-friendly option to start and operate, it is not a cost-friendly one when it comes to defaults in compliances, and following are the LLP annual compliances which are to be complied with by every LLP irrespective of its transactions:

Filing LLP Annual Compliance:

Every limited Liability Partnership has to mandatorily file the annual returns within 60 days of closing the financial statements. LLPs are required to close their book by 31st March of every year irrespective of their incorporation, hence putting an effective due date of 30th May to file the annual returns.

Due Date: 30th May
Penalty In Case Of Default:
-Late Fees For 100 INR Per Day
-Penalty To Designated Partner Of 25,000 INR which can go up to 5 Lakhs

Filing Statement Of Accounts and Solvency

Every Limited Liability Partnership has to file their financial statement with the concerned Registrar of Companies along with the statement of solvency as certified by a practicing professional. The Statement Of Solvency and Financial Statements have to be filed within 30 days from the end of six months of the financial year to which the statement relates. Hence putting an effective due date of 30th October

Due Date:  30th October
Penalty In Case Of Default:
-Late Fees For 100 INR Per Day

Mandatory Audit Of Financial Statements in LLP Annual Compliance:

Any LLP whose contribution exceeds 25 Lakhs or the turnover exceeds 40 lakhs are required to get their accounts audited from a practicing chartered accountant. However, an LLP can get its accounts audited voluntarily audited if the partners desire so irrespective of its turnover or capital contribution.

Filing Income Tax

Income Tax Act mandates every LLP to file its Returns irrespective of its turnover or business transactions.

Due Date for Unaudited Cases: 31st July
Due Date for Audit Cases: 30th September
Penalty In Case Of Default:
Maximum Penalty Of 10,000 INR

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