Limited Liability Partnership | Mandatory Annual ROC Compliance for LLPs

ROC Compliance and Other Compliance in Case of LLP

Limited Liability Partnership (LLP):

A Limited Liability Partnership (LLP) is a type of corporate firm or entity formed by two or more persons who are associating with each other to carry a business for profit making legally and lawfully. LLPs have to be registered and governed as per the provisions and laws stated in the Limited Liability Partnership Act, 2008 (LLP Act, 2008). It is regulated by the Registrar of Companies (ROC), an office under the Ministry of Corporate Affairs (MCA).

Limited Liability Partnership

Mandatory ROC Compliances for LLP:

A Limited Liability Partnership (LLP) registered with the Ministry of Corporate Affairs must be compliant and file for the following at regular intervals with the Registrar of Companies (ROC). The mandatory regulatory compliances for LLPs are-

  • Filing for Annual Returns in LLP Form-11: Every Limited Liability Partnership has to file the Annual Returns in LLP Form-11 which is a summary of the partners in the LLP firm and also indicates any change in the management. It is to be filed within 60 days of closure of the financial year (which is 31st March of each year) with the Registrar.
  • Filing for Statement of Accounts and Solvency in LLP Form-8: It involves filing of Annual Accounts, Profit and Loss Account and balance sheet, Financial statements and Account Statements. The LLPs are required to maintain Books of Accounts on a regular basis. These accounts can be on accrual or cash basis. The Account of Solvency statements are to be prepared yearly within the financial year ending on 31st The LLPs have to file Form-8 every year on or before 30th October with the ROC. Also, it is mandatory for LLPs having turnover of Rs. 40 Lakhs and above or in which the contribution obligation of the partner’s have exceeded Rs. 25 Lakhs to have their accounts audited by a professional or auditor.
  • Filing for the Income Tax Returns: In ITR-5 an LLP is required to file its Income Tax Return for the year. If there is a requirement of auditing of the accounts of the Limited Liability Partnership under Section 44AB, then they have to mandatorily, file the return electronically with the digital signature. Here are the three situations and time line to file the ITR for fulfilling the compliances-
  • When audit is not required: Any Limited Liability Partnership having turnover less than Rs. 40 Lakhs or where the obligation of partner’s contribution is more than Rs. 25 Lakhs, then no audit of accounts is required for such firms. They are required to file the ITR on or before 31st July of each year.
  • When audit is required: Any LLP having a turnover above Rs. 40 Lakhs or in which the partner’s contribution obligation exceeds Rs. 25 Lakhs, are required to have their accounts audited under the Income Tax Act by a professional auditor. They have to file the ITR on or before 30th September of every financial year.
  • If the LLP has involvement in International Transaction: Any Limited Liability Partnership has to file Form 3CEB in case they have undertaken certain specific type of domestic transactions or have entered into some kind of international transactions with any associated organization or enterprise. Form 3CEB is to be certified by a Chartered Accountant. And the ITR in such cases must be filed on or before 30th November of each fiscal year.

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    Author: Anil Agrawal
    EZYBIZ India Consulting LLP, New Delhi. The firm is business and tax consultancy firm providing consultancy in Taxation, Regulatory, Transfer pricing, Valuation, Corporate funding and Business set up matters. He may be reached at 9899217778 or anil@ezybizindia.in.