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LLP Compliances Checklist

A Limited Liability Partnership (‘LLP’) is an entity that enjoys a separate legal status. It is a combination of a partnership firm and a company. The liability of partners is limited and protected. LLPs are governed by the Limited Liability Partnership, Act, 2008 (or ‘LLP Act’).  The Registrar of Companies (‘ROC’) is the authority to oversee LLP compliances. 
LLP and a private limited company are different in some ways. In an LLP, the partners own and make decisions. In a company, the shareholders are the owners, and the decisions are made by directors. An LLP has fewer compliances compared to a company. 

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Compliances for an LLP

An LLP is required to undertake certain compliances from incorporation to the end of a financial year. Not complying with the provisions of the LLP Act may result in penalties and other consequences. 

1. LLP Agreement 

• LLP Agreement is a written document that provides for the rights and duties of partners in relation to LLP. In case there is any matter not covered by any agreement, the same shall governed by the First Schedule to the LLP Act.
• LLP Agreement is required to be filed with the Registrar in Form 3 within 30 days of the date of incorporation. The fees of registering an LLP agreement range from Rs. 500 to Rs. 25,000 depending on the amount of contribution. 
• Any change in the LLP agreement is also required to be filed with the Registrar in Form 3 within 30 days of the date of such change. 

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2. Operational compliances

• An LLP will be required to open a separate bank account. An LLP must obtain PAN and TAN from the Income Tax Department. If the LLP exceeds the prescribed threshold, it will be required to obtain GST registration as per GST laws. 

Also Learn: Registration of Limited Liability Partnership or LLP

3.Annual Return 

• Every LLP is required to file its Annual Return for the financial year in Form 11 by 30 May of the next financial year. The annual return must be accompanied by a certificate from a designated partner stating that the accounts are true and correct. This is required when the LLP's turnover is up to Rs. 5 crores or the contribution is up to Rs. 50 lakhs. In other cases, the certificate is required from a Company Secretary. 
• The fees for filing annual returns range from Rs. 50 to Rs. 600 depending on the amount of contribution. 

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4.Statement of Accounts and Solvency

• Every LLP is required to file a Statement of Account & Solvency for the financial year in Form 8 by 30th October of the next financial year. This statement contains a declaration on the state of solvency of the LLP by the designated partners. 
• The fees for filing this statement range from Rs. 50 to Rs. 600 depending on the amount of contribution. 

5. Income tax return

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• Every LLP is required to file an Income tax return for the financial year by 31st July of the next financial year. In case LLP is required to undertake an audit, the due date is 30th September of the next financial year. If the LLP is subject to transfer pricing provisions, the due date is 30th November of the next financial year. 

6. Others

• Notification of Change – Any change in appointment, cessation, designation, or address of partner/ designated partner can be filed in Form 4 within 30 days of such change. Nominal fees of Rs. 50 to Rs. 150 is applicable. 
• Audit – Every LLP with an annual turnover of Rs. 40 lakhs or more or contributions of Rs. 25 lakhs or more must get their financial records audited.
• Applicable forms under other tax laws – LLP must file a Tax Audit Report, and Transfer pricing audit report as applicable.
  

Additional fees and Penalty

LLP Act provides a schedule of additional fees in case of delay in filing forms in Schedule A to LLP Act. 

How FileAbhi can help?

Our team of experts provides end-to-end services for LLP compliances. We ensure that your business follows all the legal and regulatory requirements.

We will help you with drafting LLP agreements, LLP registration, maintaining accounts and records yearly, preparation of annual returns, statement of account, assistance in change of partners, contribution, updating LLP agreements, etc. 

We are a team of qualified professionals with attention to detail. We ensure that the compliances are done timely to avoid penalties. 

We also assist in GST and tax compliance. You can dedicate your productive time to growing your business while we take care of all your LLP compliance needs.

Contact us to accurately comply with your LLP requirements or LLP filings.

FAQ Section

1. What if I Miss LLP Compliances?

• If you miss LLP compliances, there could be serious consequences. Other than penalties and fines an LLP could face disqualification of partners, striking off of LLP’s name, etc.

2. Are all the compliances to be done on time?

• Yes, it is necessary to comply with all LLP provisions on time. LLP Act provides for penalties, legal consequences in case of non-compliance. 

3. What is the penalty for missing LLP Compliances?

• Failure to file an annual return attracts a penalty of Rs. 100 per day during which failure continues subject to maximum limit. Failure to maintain books of account, other records, and audit, etc attracts a penalty from Rs. 10k/ Rs. 25k for designated partner/ LLP subject to maximum limit. You may refer above.