ROC Compliance for LLP - Annual Compliance with Expert Support
For LLP, the returns should be filed periodically to maintain compliance & avoid heavy penalties for non-compliance. An LLP has only a few compliances to be followed every year which is amazingly low as compared to the compliance requirements placed on the Private Limited Companies. Whilst non-compliance might only charge a Private Limited Company Rs. 1 lakh in terms of penalties and it might charge an LLP up to Rs. 5 lakhs.
ROC Compliance for LLP In 4 Easy Steps
LLP Compliance Requirements
- Maintaining a proper book of accounts and financial statements.
- Filing an annual return (Form 11) with the MCA.
- Filing a statement of account and solvency (Form 8) with the MCA.
- Filing income tax returns.
- Tax audit filing if the annual turnover is more than ₹40 lakh or capital contribution exceeds ₹25 lakh (as per the latest budget).
Benefits of ROC Compliance for LLP
What are LLP (Second Amendment) Rules, 2022?
- There can be 5 Partners instead of 2 Designated Partners (without having DIN) during Incorporation
- Limited Liability Partnerships shall be allotted their TAN & PAN along with the CoI (Certificate of Incorporation) itself
- For filing Consent of Partners, a web-based Form-9 shall be made
- The Statement of Account & Solvency shall now be signed on behalf of the LLP by its interim resolution professional
One-Time Mandatory Compliance for LLP
LLP Form-3
The LLP Partners are required to draft an LLP Agreement & a copy has to be filed with the Registrar of Companies (ROC) in LLP Form-3 within 30 days of LLP Incorporation.
PAN & TAN Number
Every Limited Liability Partnership in India must obtain PAN and TAN from the Income Tax Department. With the LLP (Second Amendment) Rules, 2022, the same shall now be allotted with the Certificate of Incorporation itself.
Bank Account
It’s vital to open a current bank account in the name of the Limited Liability Partnership with any Bank in India. All the transactions in the LLP Name should be transacted via the LLP Bank Account only.
GST Registration
Every Business or company with an annual turnover of more than Rs. 40 lakhs (service providers Rs. 20 lakhs) is required to get GST Registration under the GST Act & Rules. It is not compulsory to obtain GST quickly after LLP Incorporation. The Limited Liability Partnership can obtain the Registration when required.
Annual Compliance for LLP
Filing and Audit Requirement Under the Income Tax Act
No Audit Required
If the LLP's turnover for the financial year is less than ₹40 lakh and the capital contribution from its partners is less than ₹25 lakh, an audit is not mandatory.
Mandatory Audit
An LLP is mandated to get its accounts audited if its turnover exceeds ₹40 lakh or its capital contribution exceeds ₹25 lakh at any time during the previous financial year.
Documents required for Form 8 LLP (Statement of Account and Solvency)
Documents required for Form 11 LLP
What our Client's Say
SmoothRun is used by hundreds of founders to start, operate and grow their business.
We are Pune’s one of highest rated service provider, we are known for completing Business incorporations and other compliance services in record time.
Vrushali Yevle
“
Kunal Singh
“
Prashant Jagtap
“
What our Client's Say
SmoothRun is used by hundreds of founders to start, operate and grow their business.
We are Pune’s one of highest rated service provider, we are known for completing Business incorporations and other compliance services in record time.
Vrushali Yevle
“
Kunal Singh
“
Prashant Jagtap
“
Frequently Asked Questions
LLPs in India must file annual returns and maintain proper books of accounts. Key requirements include:
- Filing Annual Return (Form 11) with the MCA.
- Filing Statement of Account and Solvency (Form 8) with the MCA.
- Filing Income Tax Returns.
- Tax audit (if applicable based on turnover and capital contribution).
The deadlines are:
- Form 11 (Annual Return): Within 60 days of the financial year-end (usually May 31st).
- Form 8 (Statement of Account and Solvency): Within 30 days of six months from the financial year-end (usually October 30th).
An audit is mandatory if the LLP’s turnover exceeds ₹40 lakh or its capital contribution exceeds ₹25 lakh in the previous financial year.
Non-compliance can attract penalties that increase with the delay in filing. These include fixed fees and daily penalty charges.
Form 8 (Statement of Account and Solvency) is a financial report providing details about the LLP’s income, expenditure, and net assets at the end of the financial year.
Along with financial statements, Form 8 may require details on investments, loans, and partners’ capital accounts.
Form 11 (Annual Return) is a report filed with the MCA that provides a general overview of the LLP’s activities for the previous financial year. It includes details on partners, their contributions, and any changes in the LLP structure.
Late filing of Form 11 attracts penalty fees that increase with the delay.
All LLPs must file income tax returns irrespective of their income or profit.
LLPs with a turnover exceeding ₹40 lakh or a capital contribution exceeding ₹25 lakh must get their accounts audited and file tax returns based on the audit report.
