Compliance for a LLP

One of the biggest advantages that a Limited Liability Partnership , as a corporate entity, has over a traditional private limited Company is the extremely low number of compliance. However, once an LLP has been incorporated (Read Overview of LLP) still certain compliance have to be done. Article attempts to describes the common compliance requirements for a Limited Liability Partnership.

  1. Form 11 – to be filed within 60 days of closure of the year i.e. 60 days of April – Due date is end- May. This form usually contains the details of partners of the LLP including the partners admitted during the year or the partners who ceased to be so during the year. Non-compliance carries a cost of Rs. 100 per day as additional fees for the LLP.
  2. Form 8 – to be filed within 7 months of closure of the financial year i.e. 7 months of April. Due date is end October. This contains the financials for the year including the balance sheet and the profit and Loss. If the Turnover of the LLP is Rs. 40 Lakhs or more, then the financials need to get audited. Non-compliance carries a cost of Rs. 100 per day as additional fees for the LLP.
  3. Income tax return – Due date is 31 July or 30 September (if the LLP has to get audited under any applicable Act including the LLP Act or the Income tax Act). Non-Compliance carries consequences of interest payments as as well as Late Fees under Section 234F for the LLP.
  4. FDI reporting – If the LLP has received any Foreign Direct Investment (FDI) during the year, then the Annual FLA return (Foreign Liabilities and Assets) return need to be submitted by 15 July
  5. DIR KYC – The partners or designated partners who have a DIN number should get DIR KYC done by 30 September each year. Non-Compliance will cost Rs. 5000 per partner.
  6. Form 3 and/ or Form 4 – within 30 days of any change in partners or LLP Deed. Non-compliance carries a cost of Rs. 100 per day as additional fees for the LLP. Read How to Draft an effective LLP Agreement.
  7. Other compliance – This will usually depend on the transactions undertaken by the LLP. Includes (but not limited to the following):
    • GST compliance
    • Annual Reporting under income tax for specified transactions.
    • PF and ESIC or other labour laws wherever applicable,
    • shop and establishment laws etc.

CA. Bhavesh Savla

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Article by CA Bhavesh Savla