Annual Compliance for LLP

A Limited Liability Partnership (LLP) is a popular business structure in India that combines the flexibility of a partnership with the limited liability of a company. While LLPs enjoy fewer compliances compared to private limited companies, they are still required to file certain annual returns and financial statements with the Ministry of Corporate Affairs (MCA) to remain legally compliant.

In 2025, the MCA has further digitized the compliance process for LLPs through the MCA V3 portal, integrating auto-validation, e-signing, and AI-assisted form checking to simplify ROC filings.

Annual compliance for LLP refers to the mandatory filings and declarations that every registered LLP must submit each financial year, irrespective of its turnover or business activity.

Even LLPs with no business operations or NIL transactions are required to file their annual returns to avoid penalties and maintain an active legal status.

• Form 11 – LLP Annual Return

1. Filed by every LLP within 60 days of the financial year ending (i.e., by 30th May).

2. It contains:

• Details of partners and designated partners
• Total contribution received
• Changes in management during the year

Filing Fee: ₹50 (for small LLPs), increases based on contribution.

• Form 8 – Statement of Account & Solvency

1. Mandatory for all LLPs to declare their financial position and solvency status.

• Must be filed within 30 days from 6 months of FY end (i.e., by 30th October).

• Requires digital signatures of designated partners and certification by a Chartered Accountant.

Contents include:

1. Statement of Assets & Liabilities
2. Statement of Income & Expenditure
3. Declaration of Solvency

• Income Tax Return (Form ITR-5)

Every LLP must file its annual income tax return under the Income Tax Act, 1961.

Due Dates:

1. Non-audited LLPs: 31st July 2025
2. Audited LLPs: 31st October 2025

Audit Requirement:

1. When the LLP's turnover is more than ₹40 lakh or the contribution is more than ₹25 lakh.

• DIR-3 KYC (for Designated Partners)

All designated partners with a valid DIN (Director Identification Number) must file DIR-3 KYC annually by 30th September.
Failure to file leads to DIN deactivation and a penalty of ₹5,000.

Failure to comply with annual filings attracts heavy penalties as per LLP Act, 2008 and MCA norms.

• PAN Card of LLP

• LLP Agreement

• Financial statements (Balance Sheet, P&L)

• Contribution details

• Digital Signature Certificates (DSCs) of Designated Partners

• Audit Report (if applicable)

• Collect financial and partner details for FY 2024–25.

• Prepare Form 11 and file it online by 30th May 2025.

• Prepare and audit financial statements if applicable.

• File Form 8 with solvency declaration by 30th October 2025.

• File ITR-5 on the Income Tax portal by the due date.

• File DIR-3 KYC for all designated partners by 30th September 2025.

• Keep acknowledgment and SRN receipts for all filings as proof.

• Maintains active LLP status on MCA portal
• Avoids hefty penalties and legal action
• Builds trust among clients, banks, and vendors
• Helps in loan applications and tenders
• Ensures smooth closure or conversion if needed

• MCA V3 portal now supports auto-validation and real-time error checks for Form 8 and Form 11.

• Digital Signatures (DSCs) made mandatory for both designated partners.

• New AI-based compliance tracker introduced for LLPs on MCA dashboard.

• Increased scrutiny of NIL filings to prevent misuse.

• Penalty enforcement system linked with MCA-21 3.0 backend automation.

Filing errors or missing due dates can lead to non-compliance status and penalty accumulation. Platforms like InstaBiz Filings provide:

• End-to-end compliance tracking

• Automated reminders for due dates

• Expert filing of Form 8, Form 11, and ITR

• Affordable annual packages

This ensures your LLP stays compliant, penalty-free, and active year-round.