LLP annual filing-all you need to know

An LLP is a form of separate legal business entity that gives the benefits of limited liability but allows its members the flexibility of organizing their internal structure as a traditional partnership. It is governed by the Limited Liability Partnership Act, 2008. In LLP, unlike a company, the designated partner have a direct relationship between owner and management.

You will have the protection of a registered company; one partner will not be liable for any misconduct or negligence of another partner. LLP can operate not according to Company’s Act, 2013 but as per the LLP agreement formed at the time of its incorporation and LLP Act, 2008.

There are mainly 3 compliances which are mandatory for any LLP to comply for any financial year.

Important due dates:

Form Type Described Due date To be filed with
Form-8 Filing of Statement of Accounts 30th October Registrar of Companies
Form-11 Filing of Annual Returns 30th May Registrar of Companies
ITR -5 Income tax return 31st July (or 30th September, if tax audit is mandatory) Income tax department                                                                                                                                               
  1. Filing of Statement of Accounts (Form-8): Every LLP is required to prepare and close its accounts until the 31st March every year. From 8 is to be filed by at least two Designated Partners with the Registrar within 30 days after completion of six months of Financial Year. Accordingly, 30th October 2018 is the last date for filing annual accounts every year.
  2. Filing of Annual Return (Form 11): Annual Return or Form 11 is a Summary of all the Designated Partners like whether there are any changes in the management of the LLP or not. Every LLP is required to file Annual Return in Form 11 to the Registrar within 60 days from the closure of financial year i.e. Annual Returns have to be filed on or before 30th May every year.
  3. Income Tax Return: Every LLP has to file Income Tax Returns every year. The last date of filing of return for LLP is 31st July every year. However, any LLP under tax audit is required to file its Income tax return by 30th September.  
  4. Audit under Income tax Act: Every LLP whose turnover exceeds INR 2 Cr. In case of a business or INR 50 Lakh in case of a profession, is required to get its books of accounts tax audited under section 44AB of the Income-tax Act. Such audit will have to be completed and filed by 30th September.
  5. Audit under LLP Act: It may be noted that only those LLP whose annual turnover exceeds Rs. 40 lakhs or whose contribution exceeds Rs. 25 lakhs are required to get their accounts audited.

Penalty for non-Filing: If there is a delay in filing Form 8 and 11 of LLP, you will have to pay the penalty of Rs. 100 per day of default. One cannot close or wind up their LLP without filing Annual Accounts.

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