LLP Compliance
Form 11, Form 8, audit limits and small LLP benefits.
Key facts
- LLP annual return, Form 11: due by 30 May, for the year ended 31 March.
- Statement of Account & Solvency, Form 8: due by 30 October.
- An LLP must get its accounts audited if turnover exceeds ₹40 lakh or partners' contribution exceeds ₹25 lakh in the year.
- Small LLP: contribution up to ₹5 crore and turnover up to ₹50 crore. It gets lower penalties and simpler compliance.
- The LLP Agreement is filed in Form 3 within 30 days of incorporation; changes in partners are filed in Form 4.
- Late fee for LLP forms: ₹100 per day of delay.
- An LLP needs at least 2 designated partners, one of them resident in India.
Common questions
What is the due date for LLP Form 11 and Form 8?
Form 11 (annual return) by 30 May and Form 8 (statement of accounts and solvency) by 30 October, both for the financial year ending 31 March. Late fee is ₹100 per day for each form.
When does an LLP need an audit?
When turnover exceeds ₹40 lakh or partners' contribution exceeds ₹25 lakh in a financial year. For income tax, a tax audit applies separately if turnover exceeds the tax audit limit.
What is a small LLP?
An LLP with contribution up to ₹5 crore and turnover up to ₹50 crore. It pays lower penalties (half of normal, subject to caps) and has lighter compliance.
How is an LLP taxed?
At a flat 30% plus surcharge (12% above ₹1 crore) and 4% cess. Profit share received by partners is exempt in their hands; partners' remuneration and interest (up to 12%) are deductible within limits.
Sources
- Limited Liability Partnership Act, 2008 (as amended)