Annual Filings For An LLP

A Limited Liability Partnership has just a couple of compliance requirements each year. This is extremely low, as compared to the several requirements placed on a private limited company. However, the fines are also larger. While non-compliance may only cost a private limited company up to Rs. 1 lakh in penalties, it may cost an LLP up to a tenure of Rs. 5 lakh.

Thus, annual filing is a very crucial aspect for an LLP. Here are the two compliances LLPs need to complete:

1. Declaring the statement of accounts and solvency in Form 8

2. Annual returns in Form 11

Both these forms need to be submitted annually. The due date for filing returns is usually October 30 each year. Filling the forms, and complying with statutory requirements such as annual returns, profit and loss account and so on, are mandatory, even if the LLP has not done any business in that financial year.

Statement of Accounts & Solvency

• All registered LLPs are required to prepare their accounts and fill in information regarding the profit earned, or any other financial inputs regarding business, and submit it in Form 8, every year. The last date for closing of accounts for the year is March 31.

• The Form 8 should be accompanied by the signatures of the designated partners and also certified by a chartered accountant, company secretary or cost accountant.

• Failure to file the Statement of Accounts and Solvency report within the deadline will lead to a fine of Rs. 100 per day.

Annual Return

• Annual returns are filed in Form 11. This form is a summary of the management affairs of the LLP, such as number of partners and their names. Form 11 needs to be filed within 60 days of the closure of financial statement for the current financial year.

Income Tax Returns

• This is not a compliance exclusive to LLPs, but any business (or individual), though all LLPs must also file income tax returns.