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LLP Annual Compliance
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Fill The Form
Just fill the form!
Call To Discuss
Our experts will guide you!
Get Compliant
All Set, you're good to go!
Overview
In India, Limited Liability Partnerships (LLPs) are required to fulfill annual compliance by submitting specific documents to the Ministry of Corporate Affairs (MCA) every financial year as part of their legal responsibilities. This includes disclosure of financial statements, changes in partners, and income tax returns, even if the LLP is dormant. Under the LLP Act, 2008 and Income Tax Act, 1961, all LLPs must comply with specific statutory filings, regardless of their revenue or profit levels.
Benefits For Everyone!
Avoid Heavy Penalties
ROC imposes a penalty of ₹100 per day per form for delayed filings. Over time, this can snowball into lakhs of rupees, even for dormant LLPs. Regular compliance ensures peace of mind and avoids financial strain.
Maintain Active Legal Status
Non-compliant LLPs risk being marked as ‘defunct’ and struck off by the ROC. This can lead to severe disruptions in operations, freezing of bank accounts, and legal hurdles in asset transfer.
Build Business Credibility and Trust
Investors, vendors, and clients are more inclined to engage with LLPs that follow statutory obligations. A clean compliance history enhances your brand value and builds trust.
Facilitates Loans and Financial Assistance
Banks and NBFCs require updated compliance records before sanctioning business loans or credit lines. Annual filings are considered a prerequisite for assessing financial health.
Avoid Disqualification of Partners
Designated Partners can be disqualified from managing other LLPs or companies if annual compliance norms are not met for three consecutive years.
Access to Government Schemes and Startup Recognition
Many government incentives, like MSME benefits or the Startup India scheme, require proof of compliance as part of the eligibility criteria.
Ease of Business Expansion and Mergers
Whether you're planning to raise investments, merge with another company, or go global, a strong compliance record ensures faster due diligence and higher valuation.
Tax Transparency and Clean Books
Timely ITR filing ensures transparency in your income and helps in avoiding notices from the Income Tax Department. It also smooths personal taxation for partners.
Protection from Legal Scrutiny and Litigation
Keeping ROC, GST, and tax filings up to date reduces the risk of lawsuits, inquiries, or inspections from regulatory bodies.
Goodwill Among Employees and Stakeholder
A compliant LLP fosters internal confidence, enabling better hiring, smoother internal operations, and long-term stakeholder satisfaction.
Eligibility Criteria
Below are the Eligibility Criteria for Service
Complete
Process
From start to end our team provide you complete guidance and support tailored for your needs.
Maintain Books of Accounts
What Happens
Every LLP must maintain financial records, even if there is no income. This includes ledgers, cash flow statements, balance sheets, and invoices.
How Founders First Helps
We help organize your financial data and generate structured reports using CA-certified tools.
File Form 11 (Annual Return)
What Happens
This form contains details of all partners, their contributions, and any changes made during the financial year. The due date is 30th May every year.
How Founders First Helps
We handle the drafting, verification, and timely submission to ensure zero penalties.
Prepare & File Form 8 (Statement of Account & Solvency)
What Happens
Form 8 includes a declaration of solvency and financial statements. It must be filed by 30th October.
How Founders First Helps
We prepare partner-approved statements and submit them with DSCs, error-free.
Income Tax Return Filing
What Happens
Even zero-income LLPs must file ITR-5 annually by 31st July (no audit) or 31st October (audit applicable).
How Founders First Helps
Our tax experts assess audit applicability, compute tax liability, and file your ITR online.
Tax Audit (if applicable)
What Happens
If annual turnover exceeds ₹1 crore (service LLPs ₹50 lakh), audit under Income Tax Act is mandatory.
How Founders First Helps
We coordinate with registered auditors to conduct tax audits and upload reports.
GST Filings (If Registered)
What Happens
Monthly/quarterly GST returns are mandatory if your LLP is GST registered.
How Founders First Helps
We manage GST filings, input credit, and compliance reports with dedicated CA support.
Why Founders Choose Us!
Must Know !
Explanation of Technical Terms:
- → Form 8 – Statement of Account and Solvency: This is a mandatory annual submission that presents the financial performance of the LLP and includes a statement from the partners affirming the firm's solvency.
- → Form 11 – Annual Return of LLP: This return provides details about all designated partners, their capital contributions, and any updates in the LLP’s management or structure during the reporting period.
- → DSC (Digital Signature Certificate): A secure digital key issued by certifying authorities to validate and sign e-forms digitally.
- → ROC (Registrar of Companies): The government body under the MCA responsible for regulating and overseeing LLP compliance and registration.
- → ITR-5: The income tax return form designated specifically for LLPs under Indian tax laws.
Common Mistakes to Avoid in LLP Annual Compliance
- 1. Assuming Inactivity Means No Compliance: Filing is mandatory even for dormant LLPs.
- 2. Missing Filing Deadlines: Delays lead to high penalties; Founders First ensures timely alerts.
- 3. Incorrect Partner Details in Form 11: Causes rejections and re-filings.
- 4. Skipping Audit Requirement: Audit rules apply based on turnover.
- 5. Filing ITR-4 Instead of ITR-5: LLPs must use ITR-5, not ITR-4 (for individuals).
- 6. Ignoring ROC Notices: Ignoring a compliance notice can lead to LLP strike-off.
MANDATORY ANNUAL COMPLIANCES & PENALTY (Applicable to LLPs under LLP Act, 2008)
| Form No. / Compliance | When is this Compliance to be done? | Penalty / Consequences for Non-Compliance |
|---|---|---|
| Form 11 (Annual Return of LLP) | Within 60 days from the end of Financial Year (i.e., by 30th May every year) | ₹100 per day of delay (no upper limit) Example: If delayed by 100 days → ₹10,000 late fees Designated Partner Penalty: ₹10,000 to ₹1,00,000 ROC may issue a legal notice and initiate proceedings |
| Form 8 (Statement of Accounts and Solvency) | Within 30 days from the end of 6 months of the Financial Year (i.e., by 30th October every year) | ₹100 per day of delay (no upper limit) Example: 100 days delay → ₹10,000 penalty Designated Partner Penalty: ₹10,000 to ₹1,00,000 ROC can initiate action for continued non-compliance |
| Income Tax Return Filing | By 31st July (if not under audit) By 30th September (if under audit) | Interest on late payment + Penalty under the Income Tax Act |
| Audit Requirement | If turnover exceeds ₹40 Lakhs OR contribution exceeds ₹25 Lakhs | Non-compliance may lead to legal implications and penalties |
| Maintenance of Books & Records | Ongoing throughout the year | ROC may impose a penalty under the LLP Act for failure to maintain |
| KYC of Designated Partners (DIR-3 KYC) | By 30th September every year | ₹5,000 per Designated Partner for failure to file |
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Frequently Asked Questions
Get answers to the most common questions about our services.
Yes, even dormant LLPs must file Form 11, Form 8, and ITR-5.