When Compared to the Private Limited Company, the compliance related to Limited Liability Partnership is very less. The entity besides running its business is also required to comply with such mandatory compliance as required by law, in order to avoid non-compliance actions and penalties. In this article, we shall discuss the mandatory compliance which is required to be complied with by LLP.
In this article, we will discuss about...
Contents of the Article
- Limited Liability Partnership (LLP)
- Filing of
- Form 11- Annual Return of LLP
- Form 8- Statement of Accounts & Solvency of LLP
- Income Tax Returns
Limited Liability Partnership (LLP)
Limited Liability Partnership is a separate legal entity and a kind of business form, which possesses the benefits of limited liability of a company and the flexibility of partnership firm, where the liability of its partners is limited to their agreed contribution. LLP is referred to as a hybrid between a company and a partnership, as it possesses the elements of both a corporate structure as well as a partnership firm structure.
Form 11- Annual Return of LLP
Filing of Annual Return in form 11 is one of the statutory compliance which is required to be complied by all limited liability partnership firm’s in pursuant to Rule 25(1) of Limited Liability Partnership Rules, 2009 irrespective of the turnover of the LLP made during the year.
Form 11 Annual return has to be submitted within 60 days from the end of the Financial Year. For eg: Due date for filing Form 11 for the Financial year 2019-20 is 30th May 2019.
Form 8- Statement of Accounts & Solvency of LLP
In pursuant to Rule 24 of Limited Liability Partnership Rules, 2009, Every LLP is required to file its Statement of Accounts & Solvency in Form 8 with the registrar.
Form 8 Statements of Accounts and Solvency has to be filed within a period of 30 days from the end of 6 months of the financial year to which the Statement of Account and Solvency relates.
Form 8 has to be digitally signed by at least two designated partners of LLP. In case the total turnover of the LLP exceeds Rs.40 lakhs or contribution of partner exceeds Rs.25 Lakhs, then such form 8 has to be certified by the auditor of the LLP.
Filing of Income Tax Returns
Every LLP is required to file its Income Tax Returns in such prescribed mandatorily as per the Income Tax Act, 1961.
As per Rule 24(8) of the LLP Rules, 2009, Every LLP whose turnover exceeds Rs.40 lakhs or whose contribution exceeds Rs.25 lakhs is required to get his books of accounts audited by a chartered accountant in practice.
In case of the LLPs having international transactions with associated enterprises or has undertaken specified domestic transactions, such LLPs are required to file Form 3CEB which is duly audited by a chartered accountant in practice.
| Particulars | Due date |
| LLP for which audit is not required | 31st July |
| LLP for which audit is required | 30th September |
| LLP which is required to file Form 3CEB | 30th November |