LLP Compliance
For a Limited Liability Partnership (LLP), regular filing of returns is essential to uphold LLP compliance standards and steer clear of substantial penalties for non-compliance. LLPs benefit from a relatively lighter annual compliance burden compared to private limited companies. Nevertheless, the potential fines for non-compliance can be significant. While a Private Limited company might face penalties of INR 1 lakh for non-compliance, LLPs could incur penalties of up to INR 5 lakh. At IndiaFilings, we understand the critical importance of adhering to these annual compliances of LLP requirements, and our services are tailored to assist LLPs in meeting their obligations efficiently and effectively.
Limited Liability Partnerships (LLPs) Compliance Requirements
Limited Liability Partnerships (LLPs) are recognized as separate legal entities, and therefore, they are bound by specific compliance obligations. The responsibility for ensuring compliance rests with the Designated Partners of the LLP. The key LLP compliance requirements for LLPs include the following:
Maintenance of Proper Book of Accounts
Filing of Annual Return
Filing of Statement of Accounts
Filing of Income Tax Return (ITR - 5)
Filing of Tax Audit (If Applicable)
Ensuring annual compliances of LLP with these obligations not only maintains the legal status of the LLP but also helps in building transparency, credibility, and financial accountability.
Tax Filing Deadline (Without Tax Audit)
For LLPs not required to undergo a tax audit, the due date for tax filing is July 31st.
International Transactions - Form 3CEB
LLPs that have engaged in international transactions with associated enterprises or have undertaken Specified Domestic Transactions must to file Form 3CEB. This form should be certified by a practicing Chartered Accountant. The deadline for LLPs obliged to file Form 3CEB is November 30th.
Compliance with these audit and tax filing requirements is essential for LLPs to fulfill their legal obligations and avoid penalties.
Income Tax Return (ITR - 5)
LLPs are also required to file their income tax return using Form ITR-5. The due date for ITR filing is July 31st unless the LLP is subject to a tax audit, in which case the deadline is extended to September 30th. The income tax return provides details of the LLP's income, expenses, and tax liability.