LLP Annual Compliance in India: Complete Guide for FY 2024-25

Limited Liability Partnerships (LLPs) are one of the most preferred business structures in India for startups, professionals, and small enterprises. They combine the operational flexibility of a partnership with the limited liability protection of a company. However, every LLP registered under the Limited Liability Partnership Act, 2008 must follow a set of annual compliance requirements to remain active and avoid penalties.

This article provides a detailed overview of all LLP annual compliances, including mandatory filings, deadlines, penalties, and practical compliance tips for FY 2024-25.

1. Understanding LLP Annual Compliance

Annual compliance for LLPs refers to the legal filings and disclosures an LLP must make every financial year with the Ministry of Corporate Affairs (MCA) and the Income Tax Department. These filings ensure that the LLP maintains transparency in its operations, financial records, and governance structure.

Unlike private limited companies, LLPs have simpler compliance requirements, but failure to meet them attracts significant penalties often calculated on a per-day basis.

2. List of Mandatory Annual Compliances for LLP

Every LLP registered in India, irrespective of turnover or business activity, must comply with the following annual filings:

Compliance Type Form Name Due Date Applicable To
Annual Return Form 11 30th May every year All LLPs
Statement of Accounts & Solvency Form 8 30th October every year All LLPs
Income Tax Return ITR 5 31st July (non-audited LLP) / 31st October (audited LLP) All LLPs
Audit (if applicable) – Before filing ITR LLPs exceeding threshold limits

These filings are mandatory even if the LLP was inactive or had no transactions during the financial year.

3. LLP Annual Return – Form 11

Form 11 is the Annual Return of LLP, containing details about:

  • Total number of partners and their contributions

  • Summary of changes during the year

  • Details of designated partners

  • Compliance declarations

Due Date:

Form 11 must be filed with the ROC on or before 30th May every year, irrespective of turnover.

Late Filing Penalty:

If filed after the due date, a penalty of ₹100 per day is levied till the date of filing, without any upper limit.

Documents Required:

  • Details of partners and contribution

  • Summary of changes during the year

  • Digital Signature Certificate (DSC) of Designated Partner

Importance:

Filing Form 11 ensures that the MCA records are up to date and that your LLP remains compliant with governance norms.

4. Statement of Accounts and Solvency – Form 8

Form 8 is a crucial filing that represents the financial health of the LLP. It contains:

  • Statement of Assets and Liabilities

  • Statement of Income and Expenditure

  • Declaration of solvency signed by the designated partners

Due Date:

Form 8 must be filed by 30th October every year.

Audit Requirement:

If the LLP’s turnover exceeds ₹40 lakh or its capital contribution exceeds ₹25 lakh, it must get its books of account audited by a Chartered Accountant before filing Form 8.

Penalty for Delay:

Failure to file Form 8 attracts a fine of ₹100 per day until filing, with no maximum cap.

5. Income Tax Return – Form ITR 5

All LLPs are required to file their Income Tax Return (ITR 5) annually, even if they have no income.

Due Dates for FY 2024-25:

  • 31st July 2025: For LLPs not liable for audit

  • 31st October 2025: For LLPs liable for audit under LLP Act or Income Tax Act

Audit Requirement under Income Tax Act:

An LLP is required to get a Tax Audit under Section 44AB if:

  • The turnover exceeds ₹1 crore (for business) or ₹50 lakh (for professionals), or

  • The LLP has opted for presumptive taxation and declares lower income.

Tax Rate:

  • LLPs are taxed at 30% on total income plus applicable surcharge and cess.

6. Maintenance of Books and Accounts

Every LLP must maintain proper books of account at its registered office, either on:

  • Cash basis, or

  • Accrual basis,
    as per the double-entry system.

These records should include:

  • Receipts and payments

  • Sales and purchases

  • Assets and liabilities

  • Partner capital accounts

All books and vouchers should be preserved for at least 8 years from the end of the relevant financial year.

7. LLP Audit Requirement

Audit under the LLP Act, 2008 becomes mandatory if:

  • The annual turnover exceeds ₹40 lakh, or

  • The capital contribution exceeds ₹25 lakh.

Such LLPs must appoint a Chartered Accountant to conduct the statutory audit before filing Form 8.
Failure to get accounts audited can attract penalties and delay in tax filings.

8. Other Important LLP Compliances

In addition to annual filings, LLPs must also comply with certain event-based filings throughout the year.

Event Form Timeline
Change in partners/designated partners Form 3 & 4 Within 30 days of change
Change in registered office Form 15 Within 30 days of change
Change in LLP name Form 5 Within 30 days
Appointment/resignation of designated partner Form 4 Within 30 days

Failure to file these forms may result in non-compliance flags on MCA records and may block future filings.

9. Penalties for Non-Compliance

The LLP Act prescribes heavy penalties for failure to file annual compliances on time.

Common Penalties Include:

  • ₹100 per day of delay for each form (Form 8 & 11).

  • Designated partners may face disqualification or DIN deactivation.

  • The LLP status may change to “defaulting” on the MCA portal.

  • In extreme cases, the Registrar may strike off the LLP from the register.

Thus, timely compliance is critical to maintaining good standing with the Ministry of Corporate Affairs.

10. Step-by-Step Annual Compliance Timeline for LLP (FY 2024-25)

Month Compliance Activity Form/Action
April Prepare books and records Internal
May File Annual Return Form 11
July File Income Tax Return (non-audited LLPs) ITR 5
September–October Complete Audit (if applicable) CA Audit
October File Statement of Accounts & Solvency Form 8
October File Income Tax Return (audited LLPs) ITR 5

11. Why LLP Annual Compliance is Important

Complying with annual LLP requirements ensures:

  • Legal continuity: Avoids the risk of LLP being struck off.

  • Financial transparency: Builds trust with clients, lenders, and investors.

  • Tax compliance: Ensures smooth tax filing and refund processes.

  • Operational credibility: Audited and compliant entities are preferred by banks and government tenders.

Non-compliance not only leads to penalties but also affects the LLP’s ability to expand or convert into a company later.

12. Practical Tips for Easy Compliance

  1. Maintain accounts monthly: Don’t wait till year-end.

  2. Set reminders: For May (Form 11) and October (Form 8).

  3. Use professional help: A CA or compliance firm can handle filings on your behalf.

  4. Verify digital signatures: Ensure DSCs of designated partners are valid before filing.

  5. Keep audit ready: If nearing threshold limits, plan audit in advance.

  6. File early: Avoid last-minute portal errors and penalties.

13. Summary of LLP Annual Compliance for FY 2024-25

Form Purpose Due Date Penalty for Delay
Form 11 Annual Return 30th May 2025 ₹100 per day
Form 8 Statement of Accounts & Solvency 30th October 2025 ₹100 per day
ITR 5 Income Tax Return 31st July / 31st October 2025 ₹5000 to ₹10,000 under Sec 234F
Audit (if applicable) Mandatory if turnover > ₹40 lakh or capital > ₹25 lakh Before 31st October —

LLP annual compliance may seem procedural, but it is essential for maintaining legal and financial credibility. Timely filing of Form 11, Form 8, and ITR 5, along with maintaining proper records and audit reports, ensures that your LLP remains active, compliant, and ready for future opportunities.

Whether your LLP is newly incorporated or well-established, staying proactive with compliance will help you avoid hefty penalties and ensure smooth business operations throughout FY 2024-25.