Compliances of LLP and penalties for non compliance.
All LLPs registered under the LLP Act, 2008 need to file Annual Returns and Statement of Accounts for every Financial Year. It is mandatory for an LLP to file a return irrespective of whether it has done any business or not. There are three mandatory compliance requirements to be followed by LLPs.
Filing of Annual Return
- Annual returns are filed in Form 11. This form is a summary of the management affairs of the LLP, such as the number of partners and their names. Form 11 needs to be filed within 60 days of the closure of the Financial year. Hence this Annual Return should be filed on or before 30th May every year by the LLP.
- In case the annual turnover of the LLP crosses Rs 5 crores or the Capital contribution from Partners exceeds more than Rs 50 Lakhs the Annual return should be accompanied by a Certificate from Practising Company Secretary.
Filing of Statement of the Accounts or Financial Statements
- All LLPs are required to maintain their Books of Accounts in the Double Entry System. They also need to prepare a Statement of Solvency (Accounts) every year ending on 31st March. For this purpose, LLP Form 8 should be filed with the Registrar of Companies on or before 30th October every year.
- It should be noted that LLPs whose annual turnover exceeds Rs. 40 lakh or whose contribution exceeds Rs. 25 lakh are required to get their accounts audited by a qualified Chartered Accountant mandatorily.
- The penalty for non-filing of these forms with the ROC is Rs. 100 per day perform.
Filing of Income Tax Returns
Every LLP is required to close its financial year on 31st March every year as per the Income Tax Act and is also required to file its returns with the Income Tax Department. The LLP whose annual turnover exceeds Rs. 40 lakhs or capital contribution exceeds Rs. 25 Lakhs are required to get their accounts audited under the provisions of the Income Tax Act. Maintenance of book of accounts is mandatory for LLP, irrespective of annual turnover.
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However, it is mandatory for LLP to file a return of income electronically under digital signature if its accounts are required to be audited under section 44AB of the Income Tax Act.
Due dates for an LLP to file their Income Tax Returns:
| Particulars | Due Dates |
| LLP who is required to get its accounts audited under the Income-tax Act or under any other law | September 30 of the assessment year |
| LLP is required to furnish a report in Form No. 3CEB under Section 92E of Income Tax Act | November 30 of the assessment year |
| In any other case | July 31 of the assessment year |
EVENT-BASED COMPLIANCES FOR LLP
| Section | Nature of events | Compliance requirement | Penalty for noncompliance |
| 7(3)&(4) | Consent &Particulars of Partner/ Designated Partner | Filing of the consent of Partner/ Designated Partner to act as such with the Registrar of Companies in E Form- 4 within 30 days of the appointment as the designated partner | The LLP and all its partners shall be punishable with a fine which shall not be less than Rs. 10,000 & may extend to Rs. 5,00,000 |
| 9 | Vacancy of Designated Partner | Filing of vacancy in Designated Partner within 30 days of vacancy and intimation of same to Registrar in E Form- 4.
In case no designated partner is appointed or if any time there is only one designated partner, then each partner shall be deemed to be the designated partner |
The LLP and all its partners shall be punishable with a fine which shall not be less than Rs. 10,000 & may extend to Rs. 5,00,000 |
| 13(3) | Change of Registered Office | File the notice of any change in the registered office with the Registrar of Companies in E Form – 15 within 30 days of shifting and any such change shall take effect only upon such filing. | The LLP and all its partners shall be punishable with a fine which shall not be less than Rs. 2000 & may extend to Rs. 25000 |
| 19 | Change of Name | LLP may change its name registered with the Registrar by filing with the Registrar notice of such change in E Form- 5 within 30 days of such change | A person guilty of the offense shall be punishable with a fine which may extend to Rs 5,00,000 but which shall not be less than Rs 50000 and with a further fine which may extend to Rs 50 for every day after the first day after which the default continues |
| 23 | LLP Agreement & Changes therein | LLP Agreement and any changes made therein shall be filed with the Registrar in E Form-3 within 30 days of incorporation of LLP or such alteration of LLP agreement | The LLP and every designated partner of the LLP shall be punishable with a fine which shall not be less than Rs 2000 & may extend to Rs. 25,000 |
| 25(2) | Change in Designated Partners | Where a person becomes or ceases to be a partner or where there is any change in the name or address of a partner, notice of the same signed by the designated partner and to be filed within 30 days to the Registrar in E Form – 4. | The LLP and every designated partner of the LLP shall be punishable with a fine which shall not be less than Rs 2000 & may extend to Rs. 25,000 |
