Summary: If your company is a Limited Liability Partnership (LLP), this article by legal expert Ravi Kariya will answer all your queries regarding LLP Annual Filing.

The last date for filing Annual Compliance for an LLP (Form 11) just went by on May 30, 2018. If you are a stakeholder in an LLP, you can still submit the required form with penalty of INR 100/day. There is still a way to go before the filing of Form 8 which is October 31, 2018. Even if you are not doing business, if you have an LLP registered, you must file ‘Nil’ returns as per norms.

Here are some FAQs on LLP Annual Filings that could be of use to ensure that your firm remains on a sound legal footing.

1. What is LLP Annual Filing?

A Limited Liability Partnership is a partnership in which all or some partners have limited liability. Every LLP which is registered with the Ministry of Corporate Affairs has to file its Annual Returns and Statement of Accounts every year.

2. What are the mandatory compliances for LLPs?

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

• Annual Return - Form 11

• Financial Statements of the LLP - Form 8

• Income Tax Returns Filing - ITR 5

3. What if I have not undertaken any business during the year?  Do I still need to file returns ?

Yes, every LLP has to mandatorily file Annual Returns and financial statements with the Ministry even if they are not doing any business. It is a compulsory requirement of law that even NIL returns should be filed.

4. What is the Audit Requirement for LLPs?

Audit under LLP Act: Only those LLP whose annual turnover exceeds Rs. 40 lakhs or whose contribution exceeds Rs. 25 lakhs are required to get their accounts audited.

5. What is the due date for filing of Statement of Accounts and Annual Return?

Filing of Annual Return (Form 11): Annual Return or Form 11 is a Summary of all the Designated Partners. Whether there are any changes in the management of the LLP or not is stated.  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. This date has gone by, but if you haven’t filed yet, you should do so immediately as there is a penalty of INR 100 per year for every extra day taken to file.

Filing of Statement of Accounts (Form-8): Every LLP is required to prepare and close its accounts until the 31st March every year. Form 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 is the last date for filing annual accounts every year.

6. What are the Income Tax Compliance of LLP?

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.

Audit under Income Tax Act: Every LLP whose turnover exceeds INR 2 crore 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.

7.What is the consequence if I don’t file my LLP returns in time or delay the filing?

​If the filing is not done within stipulated time, there is a penalty of INR 100 per day till it complies. You cannot even close or wind up your LLP without filing Annual Accounts. Also, your LLP turns into unlimited statutory liability until you file all due returns.

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