Asktrix

LLP Compliance Guide (Accounting, Auditing & Mandatory Filings)

Limited Liability Partnerships (LLPs) are a popular business structure in India that combines the benefits of partnerships and companies. Compliance is essential for LLPs to maintain legal standing and avoid penalties. Asktrix provides comprehensive support for all LLP compliance requirements, ensuring your business meets all regulatory obligations efficiently and accurately.

Governing Acts and Rules

LLPs must comply with various acts and regulations:

  • LLP Act, 2008: Primary legislation governing LLP operations
  • LLP Rules, 2009: Detailed rules and procedures for LLP compliance
  • Income Tax Act, 1961: Tax compliance and filing requirements
  • GST Act, 2017: Goods and Services Tax compliance

Mandatory Compliance Requirements for LLPs

Annual Compliance Requirements

Financial Statements Preparation

LLPs must prepare annual financial records for transparency and MCA compliance:

  • Balance Sheet
  • Profit and Loss Account

Filing of Annual Return (Form 11)

Annual return must be filed by May 30 for the April-March financial year, containing details about partner changes and other statutory information.

Statement of Account & Solvency (Form 8)

LLPs must file financial statements and solvency declaration by October 30. Asktrix offers comprehensive filing support to ensure timely compliance.

Income Tax Returns (ITR)

LLPs must file ITR-5 by July 31 (unaudited) or October 31 (audited). Audit is mandatory for turnover over ₹40 lakh or professional receipts over ₹50 lakh under Section 44AB.

Goods and Services Tax (GST) Compliance

Registered LLPs must file monthly or quarterly GST returns (GSTR-1, GSTR-3B). Asktrix handles all GST filings and ITC claims efficiently.

Event-Based Compliance

Changes in Partners (Form 4)

Any appointment or resignation of partners must be filed within 30 days using Form 4. Asktrix provides expert assistance for all partner change filings.

Change of LLP Agreement (Form 3)

Modifications to the LLP Agreement require filing Form 3 to update MCA on business operations, profit-sharing, and responsibilities.

Contribution or Capital Changes

Any changes in partner contributions or capital require filing Form 3 and Form 4 with proper documentation.

Address Change (Form 15)

Registered office address changes must be filed within 30 days using Form 15 to maintain accurate MCA records.

Financial Records to Maintain for LLPs

  • Books of Accounts: Detailed records of sales, purchases, assets, and liabilities
  • Minute Books: Not mandatory but beneficial for transparency and governance
  • Partner Contribution Register: Detailed records of capital contributions from each partner
  • Employee Records (if applicable): Payroll and employee records for compliance

Audit Requirements for LLPs

Annual Audit Requirement

Audit by a Chartered Accountant is mandatory if turnover exceeds ₹40 lakh or capital exceeds ₹25 lakh.

Tax Audit Requirement

Tax audit under Section 44AB is mandatory if turnover exceeds ₹1 crore or professional receipts exceed ₹50 lakh.

Timelines and Penalties

Key Deadlines and Penalties:

  • Form 11 (Annual Return): Due by May 30 - Late fees ₹100 per day
  • Form 8 (Statement of Account & Solvency): Due by October 30 - Late fees ₹100 per day
  • ITR Filing: July 31 (unaudited) or October 31 (audited) - Interest and penalties apply

Timely compliance is crucial to avoid penalties. Asktrix provides proactive support to ensure all deadlines are met.

Benefits of Compliance with Asktrix's Expertise

  • Compliance Monitoring: Avoid costly penalties through timely filing
  • Expert Guidance: Minimize legal and financial risks with professional support
  • Transparency for Partners: Provide clarity and confidence in business operations
  • Peace of Mind: Focus on business growth while we handle compliance
FAQ

Frequently Asked Questions

Find answers to common questions about LLP compliance, eligibility, documents, process, benefits, costs, and timelines.

Is annual compliance mandatory for all LLPs?

Yes, all LLPs must file annual returns and a statement of account & solvency, regardless of turnover.

What happens if an LLP fails to file Form 11?

Late filing of Form 11 attracts a penalty of ₹100 per day until the form is filed. Continued non-compliance may result in additional penalties.

Does an LLP need to maintain financial records?

Yes, LLPs must maintain proper books of accounts, partner contribution registers, and other financial records as per LLP Act requirements.

When is an LLP audit mandatory?

Audit is mandatory if turnover exceeds ₹40 lakh or capital exceeds ₹25 lakh. Tax audit is required if turnover exceeds ₹1 crore or professional receipts exceed ₹50 lakh.

What are the deadlines for LLP compliance?

Form 11 is due by May 30, Form 8 by October 30, ITR by July 31 (unaudited) or October 31 (audited), and partner changes within 30 days.

How to change LLP partners?

Partner changes require filing Form 4 within 30 days of appointment or resignation, along with necessary resolutions and documentation.

What is Form 8 for LLPs?

Form 8 is the Statement of Account & Solvency that must be filed annually by October 30, containing financial statements and solvency declaration.

Are GST returns mandatory for LLPs?

Yes, LLPs with turnover above ₹20 lakhs must register for GST and file monthly returns (GSTR-1, GSTR-3B) and annual return (GSTR-9).

How to change LLP registered office?

Registered office address change requires filing Form 15 within 30 days of the change, along with necessary resolutions and documentation.

What are the penalties for late filing?

Late filing penalties include ₹100 per day for Form 11 and Form 8, plus additional fees. GST late filing attracts ₹200 per day penalty.

Does Asktrix help with LLP compliance?

Yes, Asktrix provides comprehensive LLP compliance services including annual filings, partner changes, GST compliance, and audit support.

What documents are needed for LLP compliance?

Required documents include financial statements, partner details, bank statements, GST returns, and other relevant business documents.

Can LLP agreement be modified?

Yes, LLP agreement modifications require filing Form 3 to update MCA records about business operations, profit-sharing, and responsibilities.

What is the cost of LLP compliance?

Compliance costs vary based on turnover and complexity. Asktrix offers competitive pricing starting from ₹10,899 for comprehensive LLP compliance services.

How does Asktrix ensure timely compliance?

Asktrix provides proactive compliance monitoring, automated reminders, expert guidance, and systematic tracking to ensure all LLP deadlines are met efficiently.

Asktrix provides tailored compliance solutions for LLPs, helping you stay ahead of statutory requirements with minimal effort.

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