What is LLP Annual Filing?
Every Limited Liability Partnership (LLP) registered under the Ministry of Corporate Affairs (MCA) must submit annual returns and financial statements for each financial year. For the year 2022, LLPs must adhere to three essential compliance requirements:
- Annual Return (Form 11)
- Statement of Accounts or Financial Statements (Form 8)
- Income Tax Return Filing
Many entrepreneurs and startup founders in India often wonder whether filing annual returns is necessary even if their LLP has no business transactions. The answer is yes—every LLP must comply with annual filing regulations, regardless of whether it is operational. Filing these returns ensures the government is informed about the status of your LLP.
Who Needs to File LLP Annual Returns in 2022?
Filing Annual Return (Form 11)
Form 11 provides a summary of an LLP’s partners and any changes in its management. Every LLP must file Form 11 with the Registrar of LLPs within 60 days from the end of the financial year.
- Deadline: May 30, 2022
Filing Annual Accounts (Form 8)
All LLPs must prepare their financial statements, including the profit and loss account and balance sheet by March 31, 2022. Maintaining financial records can be done through accounting software or spreadsheets.
LLPs must maintain their Books of Accounts using the Double Entry System and submit Form 8 (Statement of Solvency) to the Registrar.
- Deadline: October 30, 2022
Filing LLP Income Tax Return
Since an LLP is a separate legal entity, it must file an Income Tax Return in addition to the partners’ personal tax filings. The tax return records the LLP’s income and tax liabilities.
- Deadline (if audit is not required): July 31, 2022
- Deadline (if audit is required): September 30, 2022
Even if an LLP had no business activity during the year ending March 31, 2022, it must still file a NIL income tax return with the Income Tax Department.
Audit Requirements for LLPs
Under the LLP Act
An LLP must undergo a mandatory audit if:
- Annual turnover exceeds INR 40 lakhs, or
- Capital contribution exceeds INR 25 lakhs
In such cases, the financial statements must be certified by a Chartered Accountant (CA).
Under the Income Tax Act
- If an LLP has an annual turnover exceeding INR 100 lakhs, an income tax audit is mandatory.
Certification by a Company Secretary (PCS)
LLPs with:
- Turnover exceeding INR 5 crore, or
- Contribution exceeding INR 50 lakh
Must have their annual returns certified by a practicing Company Secretary.
LLP Annual Filing Due Dates
Summary of LLP Filings for the Financial Year Ending March 31, 2022
Digital Signature Certificate (DSC) Requirement
When uploading e-forms for filing, digital signatures (DSC) of at least two designated partners are required.
Penalties for Non-Compliance
Failure to file Form 8 and Form 11 within the stipulated deadlines will result in a penalty of INR 100 per day until compliance is met.
Important: If an LLP fails to comply with annual filing regulations, it cannot be closed or wound up without completing the pending filings. LLPs must adhere to the provisions of the Act and submit:
- Statement of Account and Solvency (Form 8)
- Annual Return (Form 11)
For non-compliance, penalties are charged daily and offenses can be compounded under the LLP Act.
To avoid heavy penalties, ensure timely compliance with filing deadlines.
Key Points on LLP Annual Compliance
- Professional Assistance is Recommended: Filing LLP returns requires attestation by professionals (CA/CS), and strategic tax planning is crucial.
- NIL Return Filing is Mandatory: Even if an LLP has no business activity, failing to file NIL returns can lead to penalties and future difficulties in closing the LLP.
