LLP Compliance in India: A Comprehensive Guide for 2024

Limited Liability Partnerships (LLPs) have become a popular business structure in India due to their flexible operational framework and limited liability protection for partners. However, LLPs must adhere to specific compliance requirements set by Indian authorities to maintain legal standing and avoid penalties. Understanding LLP compliance in India is essential for smooth operations and legal protection.

What is LLP Compliance in India?
LLP compliance refers to the mandatory legal and financial requirements that Limited Liability Partnerships must fulfill annually. These compliance steps include filing various returns, financial statements, and meeting audit requirements based on turnover. Regular LLP compliance is critical for maintaining the LLP’s active status and ensures it avoids hefty fines or penalties imposed by the Ministry of Corporate Affairs (MCA).

Key LLP Compliance Requirements
Annual Return (Form 11): Every LLP must file an annual return within 60 days from the end of the financial year. This form provides a summary of the LLP’s management and ownership structure.

Statement of Account & Solvency (Form 8): LLPs must file Form 8 by October 30 each year. This statement covers the LLP’s financial position and includes details of assets, liabilities, income, and expenditure.

Income Tax Filing: Like other businesses, LLPs are required to file an income tax return annually. If the turnover exceeds INR 40 lakhs, a tax audit is mandatory.

Other Event-Based Filings: Changes in partners, registered office, or capital contributions require separate filings to keep the MCA updated.