Overview
A Limited Liability Partnership (LLP) is an in-demand form of business entity in India that amalgamates the advantages of both a partnership firm and a company. It provides the flexibility of a partnership with the benefits of limited liability like a company. LLPs are guided or governed by the Limited Liability Partnership Act, 2008.
To keep an LLP active and in good standing with the government, it must comply with certain annual compliance requirements. These compliances ensure transparency, legal standing, and protection of the LLP's status.
Why
- Legal Obligation: Compliance is very mandatory process under the LLP Act, 2008. Non-compliance can lead to unwanted legal penalties and even the striking off of the LLP.
- Maintains Active Status: Regular filing helps to maintain the status of LLP activeness, integrity and in good standing with the MCA.
- Financial Transparency: Compliance ensures financial records are updated and available to stakeholders and regulatory authorities.
- Avoids Penalties: Timely filing of returns and forms helps avoid heavy penalties and legal action.
Compliance Requirements
Let's look at the key filings required by an LLP every year.
A. Form 8: Statement of Account and Solvency
- What is it?
Form 8 contains the financial statement of the LLP, including details of assets, liabilities, income, and expenditure. It also contains a declaration of the LLP's solvency.
- Who files it?
It must be signed by two designated partners and should be certified by a Chartered Accountant, Company Secretary, or Cost Accountant.
- Due date:
- Within 30 days from the end of 6 months of the financial year.
- For example, for the financial year which is ending on 31st March, the due date is 30th October. - Penalty for late filing:
- ₹100 per day of delay.
- No maximum limit, which means the penalty keeps increasing until the filing is done.
B. Form 11: Annual Return
- What is it?
Form 11 is the annual return of the LLP containing details about the number of partners, their names, addresses, and other basic information about the LLP.
- Who files it?
It must be filed by two designated partners regardless of their business activity or turnover and certified by a practicing Company Secretary if turnover exceeds ₹5 crore or partner contribution exceeds ₹50 lakh.
- Due date:
- Within 60 days from the end of the financial year.
- For the financial year which ending on 31st March, the due date is 30th May. - Penalty for late filing:
- ₹100 per day of delay.
- Again, no maximum limit.
C. DIR-3 KYC (for Designated Partners)
- What is it?
DIR-3 KYC is a mandatory annual filing for every individual who holds a Director Identification Number (DIN) — including designated partners of LLPs.
- Who files it?
Each designated partner with an active DIN must file it individually using either:
- DIR-3 KYC Form (first-time or if details changed), or
- DIR-3 KYC Web (if previously filed and no detail changes)
- Due date: -
30th September of every year.
- Penalty for late filing:
₹5,000 per DIN for filing after the due date.
D. Income Tax Return (ITR) Filing
- What is it?
Like any other business entity, an LLP is required to file an Income Tax Return (ITR) under the Income Tax Act, 1961.
- Due date:
- If audit is not required: 31st July of the assessment year.
- If audit is required: 30th September of the assessment year.
E. When is audit required?
If turnover exceeds ₹40 lakh or capital contribution exceeds ₹25 lakh in any financial year, the LLP is required to get its accounts audited by a Chartered Accountant.
- Penalty for late filing:
- ₹5,000 if return is filed after the due date but on or before 31st December.
- ₹10,000 if filed after 31st December.
- If total income is below ₹5 lakh, maximum late fee is ₹1,000.
Fees
- Government Filing Fee: Based on the contribution amount.
- Professional/consultancy fees: It may apply if using a service provider.
Timeline
| Compliance Requirement | Estimated Time to Complete | Comments |
| Form 11 (Annual Return) | 1–3 working days | Quick if partner details & digital signatures (DSCs) are ready. |
| Form 8 (Statement of Accounts) | 3–7 working days | Requires preparation of financials and partner declaration. |
| Income Tax Return (ITR-5) | 3–10 working days | Depends on accounting status and whether audit is required. |
| Tax Audit (if applicable) | 7–15 working days | Needs CA verification, financial statements, audit report. |
| Event-based Filings (e.g., partner change, address update) | 1–10 working days | Varies by type of change and documentation needed. |
FAQs
Yes, annual compliance is mandatory for all the LLPs, even if they have no business transactions or income during the year. Failing to comply can attract penalties.
The LLP and its partners are liable to pay a penalty of ₹100 per day of delay for each form with no upper limit. Persistent non-compliance can result in legal action and even the striking off of the LLP.
Yes, even a newly registered LLP must comply with annual filing requirements. For example, if an LLP is incorporated on or before 30th September, it must file the annual return and statement of accounts for that financial year. If incorporated after 30th September, it can file in the next financial year.
Not always. An LLP is required to get its accounts audited only if its turnover exceeds ₹40 lakh or if the capital contribution exceeds ₹25 lakh in any financial year. Below this threshold, audit is not mandatory.
Yes, both Form 8 and Form 11 must be filed online through the official MCA portal (www.mca.gov.in) using valid DSCs (Digital Signature Certificates) of the designated partners. Payment of filing fees and late fees (if any) can also be done online.
Yes. Every individual holding a Director Identification Number (DIN) — including designated partners of an LLP — must file DIR-3 KYC annually by 30th September. Failure to file results in a ₹5,000 penalty and deactivation of the DIN until compliance is completed.
Non-filing of ITR can lead to penalties under the Income Tax Act. A late fee of ₹5,000 or ₹10,000 (based on delay and income level) may be levied along with interest on tax dues. Repeated non-compliance may invite scrutiny and legal action from the Income Tax Department.
No. Even if an LLP is inactive or has not undertaken any business activity, filing of Form 8, Form 11, ITR, and DIR-3 KYC (for DPs) remains mandatory. However, financials can reflect "NIL" activity, and audit may not be required if thresholds are not crossed.
Basic filings like Form 11 (if under thresholds) or ITR (if simple) may be prepared by the partners themselves. However, professional certification is mandatory for Form 8 (if audit applies) and for Form 11 (if thresholds are exceeded). Hiring a CA/CS is strongly recommended for accuracy and legal safety.
Generally, late filing penalties (like ₹100/day for MCA forms) are statutory and non-waivable. However, from time to time, the MCA launches settlement or amnesty schemes allowing LLPs to clear pending compliances with reduced penalties. These are time-bound relief schemes.
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