Overview
A Limited Liability Partnership is a popular business structure in India because it offers the flexibility of a partnership and the limited liability benefit of a company. An LLP registered under the Ministry of Corporate Affairs is required to follow certain annual compliance requirements irrespective of its turnover or profit. Even if the LLP has not carried out any business during the financial year, compliance filing is mandatory.
Annual compliance for an LLP mainly includes preparation of financial statements, filing of Annual Return and Statement of Account and Solvency, and income tax return filing. These filings ensure that the LLP remains legally active and compliant with regulatory authorities. Non filing or delayed filing may attract heavy penalties on a per day basis without any upper limit. This can become a financial burden for the partners and may also affect the LLP’s credibility.
As per the provisions of the Limited Liability Partnership Act, 2008, every LLP must file Form 11 which is the Annual Return and Form 8 which is the Statement of Account and Solvency. Apart from this, income tax return must be filed in Form ITR 5 with the Income Tax Department. If the turnover exceeds the prescribed limit, audit of accounts by a Chartered Accountant becomes mandatory.
At BizGlobal, we understand that many LLP owners focus on growing their business and often find compliance procedures complex and time consuming. Our team ensures complete annual compliance for your LLP with proper documentation, timely filing of Form 11, Form 8 and ITR 5, regular reminders and professional support. We help you avoid penalties and maintain your LLP in active status without stress.
