Annual Compliance Filings for LLPs

LLPs need to file their returns and statement of accounts annually. Failing to comply with this can attract a penalty of up to Rs 5 lakh. Annual Compliance comprises.

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What are Annual Filings? (Overview)

Limited liability partnerships (LLPs) are required to meet fewer criteria for compliance on filing annual returns, in comparison to private limited companies. LLPs are required to provide information related to the statement of accounts, and returns, on an annual basis. Penalties, however, are huge for failure to comply. Entities that don't provide the requisite information are fined heavily, with penalties that can go up to Rs. 5 lakhs.

Benefits of Filing Annual Compliances For LLPs

Limited Liability of Partners
Because a Limited Liability Partnership can enter into a contractual relationship in its own capacity, it offers a great advantage to the partners for limiting their personal risk. Many new age businesses prefer LLP registration over partnership so that their personal assets remain safe in case of loss, or even insolvency. Further, one partner is not held responsible for the actions of negligence or misconduct of any other partner.
Operational Flexibility
LLP Agreement, deed among partners of an LLP, clarifies operating structure including rights and responsibilities of the partners. Typically, LLP would select a “Designated Member” who would control day-to-day operations. It can have individuals or existing businesses as members. Further, this structure allows to clearly define roles of the partners and their respective responsibilities. It could also help in protecting partner’s interest in case of loss because of an unlawful act of any other partner.
Separate Legal Existence
LLP registration creates a separate legal identity than its partners. Governed by the LLP Act of 2008, it allows the business to contract with other entities, take legal action, own assets and borrow funds in the name of an LLP itself. It is a major advantage that is not available to a regular partnership firm
Lower Compliance Requirement
A key benefit of LLP Registration over a private company is lesser compliance requirement. It doesn’t have a mandatory audit requirement until a certain level of turnover or contribution. Unlike companies, compliances related to board meetings, statutory meetings, etc. do not apply to LLPs. Professional services for compliance are typically available at cheaper rates than that for companies, making it cost effective to maintain an LLP.

Important Requirements of Filing Annual Compliance

Maintain Discipline

For businesses to meet their annual compliance requirements, all it requires is for them to remain disciplined and vigilant. However, being callous can result in hefty fines and penalties. No to mention, LLPs that meet annual compliance requirements are often granted loans quicker or readily funded by investors, as these businesses are compliant with the requirements of the Registrar of Companies (RoC).

Regular Updates From The RoC (Registrar Of Companies)

With an on-call company secretary throughout the year, you can ensure that your business is run in accordance with the laws in force. Our team would keep you up-to-date on all the changes made by the RoC, throughout the year.

Documents Required

Form 8

You must file the Form 8 inside 30 days from the completion of 6 months after a financial year ends. Two designated partners can sign this form digitally. Also, a company secretary/chartered accountant/cost accountant must certify the same. There are 2 parts in a Form 8 –

  • Part A – The solvency statement
  • Part B – Statement of expenditure & income, statement of accounts.

For not filing the Form 8 on time, a penalty of Rs 100 per day will be imposed.

Form 11

This form contains details such as the total number of designated partners, details of partners along with details of body corporates as partners, contributions received by the partners and summary of all partners. All LLPs must file the Form 11 within 60 days after the end of the financial year, along with the fee prescribed. Therefore, the LLPs should file their Form 11 by 30th May every year.

An LLP will not be allowed to close or wind up till it files all its annual returns. Therefore, all LLPs must file their annual returns on time, to avoid penalties.

Make Application in 3 Easy Steps

1. Answer Quick Questions
  • Pick a package for LLP registration that best fits your requirements
  • It takes less than 10 minutes to fill in our questionnaires
  • Provide basic details & documents required for LLP registration
  • Make payment through secured payment gateways for LLP registration fees
  • You are assisted by our experts throughout the process
2. Relax While Team of Experts Get It All Done
  • Assigned Relationship Manager
  • Procurement of Digital Signatures (DSC)
  • Application for LLP Name Reservation
  • Certificate of LLP Incorporation
  • Application for Director Identification Number (DIN)
  • Application for PAN and TAN
  • Drafting of LLP agreement and other required documents
3. Wow! LLP Registration was Easy
  • Your business is registered, get-set-grow!
  • All it takes is 15 – 18 working days to register and incorporate your LLP in India*

A Limited Liability Partnership is a legal entity separate from its partners and therefore, offers limited liability to its partners whereby any debts and obligations of the LLP will be borne by the assets of the LLP.

In the case of a conventional partnership, the partners are jointly and severally liable for each debt and obligation of the partnership firm

The target groups are:

  • Professionals
  • Small and medium sized businesses
  • Venture capitals
  • Joint Ventures


If the partner:

  • has been found to be of unsound mind by a Court of competent jurisdiction and the finding is in force 
  •  Is an undischarged insolvent
  • Has applied to be adjudicated as an insolvent and his application is pending.

As per Section 2(1)(m) of the Act, a “foreign limited liability partnership” means a limited liability partnership formed, incorporated or registered outside India which establishes a place of business within India

As per section 5 of the Act, only an individual or body corporate may be a partner in a Limited Liability Partnership. It is further clarified vide MCA General Circular No. 13/2013, dated 29th July, 2013, read with MCA General Circular No. 2/16 dated 15th January, 2016, that an HUF cannot be treated as a body corporate for the purposes of LLP Act, 2008. Therefore, a HUF or its Karta cannot become a partner or designated partner in LLP

General Circular No. 37/2014, dated 14th October, 2014, clarified that the trustee being a body corporate and representing a trust in case of “Real Estate Investment Trust” (REIT) or “Infrastructure Investment Trust” (InvITs) or such other trusts set up under the regulations prescribed under the Securities & Exchange Board of India Act, 1992, is not barred to hold partnership in a LLP in its name without the addition of the statement that it is a trustee.

  • A basic difference between an LLP and a joint stock company lies in that the internal governance structure of a company is regulated by statute (i.e. Companies Act, 1956) whereas for an LLP it would be by a contractual agreement between partners.
  • The management-ownership divide inherent in a company is not there in a limited liability partnership.
  • LLP will have more flexibility as compared to a company.
  • LLP will have lesser compliance requirements as compared to a company.

A Registered Office refers to the official correspondence address of an LLP or its principal place of business. The address of the Registered Office will be used for all official communications of the LLP.

Registered office of an LLP can be shifted from one place to another in the same state or from one state to another after complying with legal requirements.

A designated partner of an LLP means the partner who is responsible for carrying out all acts and things that are required for the functioning of the LLP in respect of compliance of provisions, filing of documents/returns/statements under the LLP Act and things as may be specified in the LLP agreement.

An LLP should have a minimum of two designated partners who are individuals and at least one of them should be resident in India.

Contribution means the amount contributed by each partner in the LLP as per the LLP agreement. The contribution is the liability of each partner and an LLP can recover the agreed contribution from the partner. A partner can contribute to the capital by cash, goods or services subject to applicable valuation.

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