LLP Annual Returns: All You Need to Know

Updated: 02-05-2023

The Limited Liability Partnership (LLP) was introduced in India in 2008 as a corporate business vehicle that provides the benefits of a partnership while also limiting the partners’ liability. Despite the easy and cost-friendly incorporation process, LLPs have annual compliance requirements that must be fulfilled. LLPs must adhere to LLP annual returns, which are mandatory for all LLPs regardless of their transactions. These annual compliances include filing the Annual Return and Statement of Accounts every year, maintaining books of accounts and other records, and ensuring compliance with applicable laws and regulations. Non-compliance with LLP annual returns can result in penalties and other legal consequences. It is essential for LLPs to comply with their annual return requirements to avoid legal repercussions and maintain their business standing.

Filing LLP Annual Returns

To ensure compliance with legal requirements, all Limited Liability Partnerships (LLPs) are obligated to submit their annual returns within 60 days of closing their financial statements. Regardless of the date of incorporation, LLPs must close their books by March 31st each year, which sets the deadline for filing annual returns on May 30th. This deadline must be adhered to strictly, as failure to file annual returns can result in penalties and legal action. Therefore, LLPs must prioritize timely submission of their annual returns to avoid any negative consequences.

Documents & Information required for Filing LLP Annual Returns

Following information and Documents will be required to file Form 11 for LLLPs:

  1. Basic Details of LLP such as LLPIN
  2. Contribution Received from Partners & details of the same
  3. Details of All Designated Partners for the Period of Annual Return
  4. Details of any Compounding offences
  5. Designated Partner Certification, the form has to be certified by the Designated partners in case the turnover of the LLP doesn’t exceed INR 5 Crores or the Contribution does not exceed INR 50 lakhs.
  6. Company Secretary Certification, the form has to be certified by a practising Company Secretary in case the turnover of the LLP exceeds INR 5 Cores or the Contribution exceeds INR 50 lakhs during the Financial year.

Due Date for LLP Form 11: 30th May

Penalty in case of Default:

Non-compliance with the mandatory filing of Annual returns for your LLP may result in a substantial penalty. This includes additional fees that can reach up to 50 times the normal filing fees, as well as a fine of INR 25,000 on the Designated Partner. This penalty amount can further increase up to 5 Lakhs.

Filing Statement of Accounts and Solvency

Limited Liability Partnerships are required to file their financial statements and a statement of solvency as certified by a practising professional with the Registrar of Companies within 30 days from the end of six months of the financial year. This makes the effective due date for filing these documents October 30th. Failure to file on time may result in penalties and fees.

Documents & Information required for Filing LLP Annual Returns

Following information and Documents will be required to file Form 8 for LLLPs:

  1. Basic Details of LLP such as LLPIN
  2. Financial Statements which include Balance Sheet & Profit & Loss Ac
  3. Disclosure regarding MSME
  4. Certification, the form has to be certified by the Designated partners and a Practising Professional to proceed further
  5. Details of Charges if any created during the year

Limited Liability Partnerships with a contribution of over 25 lakhs or a turnover exceeding 40 lakhs must obtain audit certification from a practising chartered accountant. Additionally, LLPs have the option to get their accounts voluntarily audited at the discretion of the partners, regardless of their turnover or capital contribution.

Due Date for LLP Form 11: 30th October

Penalty in case of Default:

Non-compliance with the mandatory filing of Annual returns for your LLP may result in a substantial penalty. This includes additional fees that can reach up to 50 times the normal filing fees, as well as a fine of INR 25,000 on the Designated Partner. This penalty amount can further increase up to 5 Lakhs.

Filing DIR 3 KYC 

If you are holding a Director Identification Number as on 31st March, irrespective of you holding a Directorship in any Company or Limited Liability Partnership will be required to file the DIR3 KYC Compliance.

Due Date: 30th September

Penalty in case of Default:

Flat INR 5,000 for Activating the DIN

Filing Income Tax Returns

As per the provisions of the Income Tax Act, it is mandatory for every Limited Liability Partnership to file its income tax returns, regardless 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

If you’re unsure about the various compliance requirements for your business, don’t hesitate to reach out to Tradeviser for assistance. Book your consultation now by clicking below.