For a Limited Liability Partnership (LLP), timely filing of returns is crucial to ensure compliance and avoid hefty penalties. While LLPs have fewer compliance requirements compared to private limited companies, the penalties for non-compliance are significantly higher. For instance, while a private company may face penalties of up to INR 1 lakh, an LLP can be fined up to INR 5 lakh for non-compliance.

Since an LLP is a separate legal entity, it is the responsibility of designated partners to maintain proper books of accounts and file an annual return with the Ministry of Corporate Affairs (MCA) every year. Auditing is mandatory only if the annual turnover exceeds INR 40 lakh or the contribution exceeds INR 25 lakh, making LLP compliance relatively simpler compared to private companies.

Key LLP Annual Filing Requirements

1. Filing of Annual Return (Form 11)

• Deadline: 30th May every year.
• Purpose: Summarizes LLP’s management affairs, partner details, and compliance status.
• Certification Requirement: If the total contribution exceeds INR 50 lakh or the turnover exceeds INR 5 crore, the form must be certified by a practicing Company Secretary.

2. Filing of Statement of Accounts & Solvency (Form 8)

• Deadline: 30th October every year.
• Purpose: Records the profit earned, financial data, and solvency status of the LLP.
• Certification Requirement: Must be attested by designated partners and certified by a practicing Chartered Accountant, Company Secretary, or Cost Accountant.
• Penalty for Late Filing: INR 100 per day.

3. Filing of Income Tax Return for LLPs

• Mandatory for all LLPs, regardless of turnover.
• Deadline:
  • For LLPs not requiring an audit: 31st July.
  • For LLPs requiring an audit: 30th September.

4. Audit Requirement Under Income Tax Act

• LLPs with a turnover exceeding INR 40 lakh or a contribution exceeding INR 25 lakh must have their accounts audited by a practicing Chartered Accountant.

New Web-Based Process for LLP Filing on MCA Portal

MCA has introduced the V3 version of MCA21, making all LLP filings web-based instead of downloadable forms. The LLP-11 and LLP-8 forms are now to be filled directly on the MCA website under Section 35 of the LLP Act, 2008, read with Rule 25 (1) of the LLP Rules, 2009.

Key Features of the Web-Based Process:

• No need to download blank forms; everything is filled online.
• 80% of the form data is pre-filled (e.g., partner details, capital contribution, etc.).
• Filing restrictions apply if there are pending Form LLP-4 submissions (related to partner changes).

Process of Filing Forms (LLP-8 & LLP-11) Online:

1. Register as a business user on the MCA portal.
2. Fill the web-based form on the MCA website.
3. Submit the form to generate the SRN (Service Request Number).
4. Download the auto-generated PDF from the “My Application” tab.
5. Affix the DSC (Digital Signature Certificate) using Adobe.
6. Upload the signed document back on the MCA portal against the SRN.

Advantages of Limited Liability Partnership (LLP)

LLPs enjoy several benefits compared to private limited companies:

✔ Separate Legal Entity: LLPs have an identity distinct from their partners.
✔ Easy Ownership Transfer: Ownership can be transferred without complex procedures.
✔ Limited Liability Protection: LLP assets and liabilities are separate from the promoters.
✔ Flexible Fundraising: LLPs can raise funds from banks, partners, and NBFCs.

LLP Annual Filing Services at MAG

Compliance is mandatory for all LLPs, irrespective of turnover or transaction volume. Filing annual returns on time ensures that businesses avoid unnecessary penalties and remain compliant with legal requirements.

At MAG, we offer:

• Expert assistance in LLP annual return filing online.
• Timely submission of LLP Form 8 & Form 11.
• Income Tax Return Filing for LLPs.
• Audit compliance and certification services.
• Hassle-free online compliance management.

For professional LLP compliance and filing services, reach out to  [email protected]. Our expert team ensures smooth, accurate, and timely filing for all your LLP compliance needs.