Annual Compliances for an LLP
If you are operating a Limited Liability Partnership (LLP), it is essential to understand that your business is obligated to meet specific annual compliances, regardless of whether any business activity was conducted during the year. These mandatory compliances include the filing of Form 8 (Statement of Accounts & Solvency) and Form 11 (Annual Return), which must be submitted to the Ministry of Corporate Affairs (MCA) every year. Even if your LLP did not conduct any business operations, these forms still need to be filed on time to maintain your business’s legal standing and avoid unnecessary penalties.
Failure to comply with these requirements can attract significant penalties, including fines and late fees, which may increase over time. For example, if Form 8 and Form 11 are not filed within the prescribed deadlines, your LLP can face penalties for non-compliance. These penalties can range from a nominal fine to substantial charges, depending on the duration of the delay, and in some cases, your LLP could even face legal consequences.
At eTaxcart, we simplify the compliance process for your LLP by offering expert guidance and handling all aspects of the filing requirements. Our services ensure that your LLP remains in good standing with the MCA, helping you avoid penalties and potential disruptions to your business operations. In the next section, we will take a closer look at the specifics of these mandatory filings and how we can assist you in meeting your LLP’s annual compliance obligations seamlessly.
The primary objective of these annual filings is to ensure that the financial health and structure of your LLP are transparent and in line with regulatory requirements. Form 8 provides information on the LLP’s financial status, including its assets, liabilities, and solvency, while Form 11 ensures that the details of the LLP’s partners, their responsibilities, and any changes to the partnership are accurately recorded.
The key annual compliances that every LLP must adhere to, along with their respective due dates:
Form 8, also known as the Statement of Accounts & Solvency, is a mandatory filing required by all Limited Liability Partnerships (LLPs) under the LLP Act, 2008. This form provides crucial details about the financial health of the LLP, including its assets, liabilities, and solvency status. Regardless of whether the LLP has conducted business during the year, Form 8 must be filed annually to ensure that the business remains compliant with the Ministry of Corporate Affairs (MCA).
Key Details:
- Purpose: The purpose of Form 8 is to provide a snapshot of the LLP’s financial position, which includes the balance sheet and profit & loss statement. This helps to demonstrate the solvency of the LLP, confirming that the business can meet its financial obligations.
- Who Needs to File: All LLPs, irrespective of their business activity or income, are required to file Form 8. This includes dormant LLPs and those with no business transactions during the year.
Due Date:
Form 8 must be filed within 30 days from the end of 6 months of the financial year. As the financial year in India runs from April 1 to March 31, the due date for filing Form 8 is October 30th each year.
Penalties for Non-Compliance:
Failure to file Form 8 by the due date can lead to significant penalties. The penalties for late submission are as follows:
Late Filing Penalty: A fine of ₹100 per day will be levied for every day the form is delayed, starting from the due date.
Documents Required for Filing Form 8:
- Statement of Accounts: A detailed balance sheet and profit and loss statement for the financial year.
- Solvency Certificate: A certificate signed by designated partners confirming the solvency of the LLP.
- Financial Statements: Audited or unaudited financial records, depending on the size and structure of the LLP.
Why It’s Crucial to File Form 8 on Time:
- Legal Compliance
- Maintain Good Standing
- Transparency and Trust
Form 11, also known as the Annual Return, is a critical compliance requirement for all Limited Liability Partnerships (LLPs) registered in India. This form contains key information regarding the LLP, such as its partners, designated partners, and the structure of the LLP. Filing Form 11 ensures that the Ministry of Corporate Affairs (MCA) has up-to-date details about the LLP’s operations, structure, and partnership agreements.
Key Details:
- Purpose: Form 11 serves to update the MCA on the current status of the LLP, including the list of partners, designated partners, and any changes that may have occurred in the LLP during the financial year. It also confirms that the LLP is active and operational, in compliance with the LLP Act, 2008.
- Who Needs to File: All LLPs, regardless of their business activity or turnover, are required to file Form 11 annually. This includes dormant LLPs and LLPs with no business transactions in the financial year.
Due Date:
Form 11 must be filed annually, and the due date for submission is within 60 days from the end of the financial year, i.e., by May 30th every year. For the financial year running from April 1 to March 31, the form must be submitted by May 30th of the following year.
Penalties for Non-Compliance:
Failure to file Form 11 within the prescribed deadline can lead to significant penalties. The penalties for late filing are as follows:
Late Filing Penalty: A late fee of ₹100 per day will be charged for every day the filing is delayed beyond the due date.
Documents Required for Filing Form 11:
- List of Partners and Designated Partners: Complete details of all partners and designated partners, including names, addresses, and DIN (Director Identification Number) if applicable.
- Changes in Partnership: Any changes in the partnership structure during the year, including new partners, resignations, or retirements, must be disclosed.
- Partnership Agreement
Why It’s Crucial to File Form 11 on Time:
- Legal Compliance
- Maintain Good Standing
- Transparency
- Avoid Penalties
Overview:
Form DIR-3 eKYC is a compliance requirement introduced by the Ministry of Corporate Affairs (MCA) for all directors of companies and designated partners of LLPs. This form ensures that the personal details of directors and designated partners are updated annually with the MCA for security and verification purposes.
Key Details:
- Purpose: Form DIR-3 eKYC is used to update the KYC (Know Your Customer) details of directors and designated partners in the MCA database, ensuring that their contact information and other personal details are accurate.
- Who Needs to File: All designated partners of LLPs are required to file Form DIR-3 eKYC. This includes individuals who hold the position of designated partners in any LLP registered in India.
Due Date:
The due date for filing Form DIR-3 eKYC is September 30th of every financial year. It is mandatory to complete the eKYC process annually.
Penalties for Non-Compliance:
Failure to file Form DIR-3 eKYC by the due date can result in a penalty of ₹5,000 for each designated partner. Further delays can attract additional fines and may lead to the disqualification of the partner or director from holding office.
Advantages of Annual Compliances of an LLP
At eTaxCart, our mission is to make tax and compliance stress-free — so you can focus on growing your career, your business, or your next big idea.
Legal Compliance
Ensures your LLP adheres to the legal requirements set by the Ministry of Corporate Affairs (MCA), avoiding any risk of penalties or legal issues.
Avoid Penalties
Timely submission of forms and returns helps avoid hefty fines and penalties that can accumulate for non-compliance.
Maintain Good Standing
By meeting annual compliance requirements, your LLP remains in good standing with the MCA, preventing suspension or legal actions.
Financial Transparency
It ensures the LLP’s financial statements, including balance sheets and profit & loss statements, are accurate, fostering transparency in business operations.
Protection Against Legal Risks
Annual compliance protects the LLP from potential lawsuits, disqualification of partners, or government actions due to failure to meet statutory obligations.
Easy Handling of Audits
Regular filings ensure that your financial and business records are well-organized, making it easier to manage audits and inspections.
Simplifies Future Filings
Maintaining compliance simplifies future filings, as all necessary records and documentation are updated and in place.
Corporate Governance
Compliance helps maintain a structured and legally sound governance system within the LLP, ensuring proper decision-making processes and operational integrity.
Documents Required for LLP Compliance
These documents are required for Annual Compliances for an LLP
Our Pricing Plans
Choose the plan that best fits for you. We have three major plans to offer.
Starter
- Form 8 filing
- Form 11 filing
- Income Tax Return of LLP for one financial year
- 2 DIR 3 KYC filing
- Expert POC
Elite
- All features outlined in the starter package.
- GST filing for one year
- Income tax return for 2 partners
- Accounting & Bookkeeping (up to 250 transaction annually)
- Financial statement preparation
- Expert POC
- GST filing for one year
- TDS filing for one year
Govt. Fees
Government fees wherever applicable in the form filing will be extra and receipt for the same will be issued at the time of filing.
* Financial statements and details will be provided by the client and turnover below 20 Lakhs
** Details will be provided by the client and turnover below 30 Lakhs
*** Details will be provided by the client and turnover below 40 Lakhs
Why Choose eTaxCart for Annual Compliance?
Simple and Quick Process
We make the annual compliance process for LLPs seamless and hassle-free, allowing you to focus on growing your business while we handle the legalities.
Affordable Fees
Our LLP annual compliance services are cost-effective, providing great value for your investment in maintaining regulatory compliance and business health.
Expert Guidance
Our experienced professionals offer step-by-step guidance, ensuring your LLP meets all legal requirements without any delays or complications.
Frequently Asked Questions
Here are the answers of the questions we received frequently.
Annual compliance for an LLP involves filing required documents such as Form 8 and Form 11 to ensure that the business meets legal obligations with the Ministry of Corporate Affairs (MCA). This is required even if the business has no activity during the year.
Form 8 must be filed within 30 days from the end of 6 months of the financial year. The due date for filing Form 8 is typically October 30th each year.
Form 11 must be filed within 60 days from the end of the financial year, which is by May 30th of the following year, for the period running from April 1 to March 31.
If your LLP’s turnover is below ₹40 lakhs, you do not need to have audited financial statements. However, you need to submit unaudited financial records.
The designated partner is responsible for ensuring that the LLP complies with all annual filings. They sign and submit the compliance documents, ensuring that the LLP maintains good legal standing by completing all necessary reports and submissions.
No, even if your LLP is dormant or had no business activity, you still need to file these forms to maintain the legal standing of your business.
Yes, even if your LLP has no income, you still need to file financial statements to show the status of assets, liabilities, and solvency. This is part of your legal obligations.
Failing to submit Form DIR-3 eKYC for designated partners by the due date can result in penalties, and in some cases, the disqualification of the partners from holding office in the LLP. Timely submission ensures that the partner details are updated and verified.
eTaxcart makes the entire compliance process smooth and hassle-free. Our experts ensure timely filing of Form 8, Form 11, and other necessary documents, saving you from penalties and ensuring that your LLP remains in good standing.
