Congratulations on starting your Annual Filing for LLP (Limited Liability Partnership)—a smart choice! Entrepreneurs in India favor LLPs for many reasons: flexibility, limited liability, and lower compliance than private limited companies. To be clear, it doesn’t matter whether your LLP is operating or has just been dormant. If you have formed an LLP, you must comply with annual filings. Yes, even if you generated zero revenue.
Let us simplify it all for you, so you remain compliant and do not incur unnecessary penalties.
Why Are Annual Filings Important for LLPs?
Annual filing can be viewed as a business check-up. LLPs have an obligation, much like how individuals file their income tax returns. The government wants to see if you have revenue, and what your financial health is; filing is not just for throwing paper at the government; it is a form of transparency, credibility, and avoiding legal issues.
Annual filings help ensure that your LLP is/or remains active in the eyes of the Ministry of Corporate Affairs (MCA). If you miss a filing deadline, penalties may arise, and your LLP may get struck off the register.
What Forms Do You Need to File Annually?
There are two forms that all LLPs must file on an annual basis:
1. Form 11 – Statement of Account & Solvency
Due Date: May 30 each year.
What this includes:
The names of all the partners.
A statement of the LLP’s total liabilities and assets.
A statement claiming the LLP’s solvency.
Form 11 is straightforward, but it must be filed even if your LLP has never conducted any business for the financial year.
2. Form 8 – Statement of Account & Solvency
Due Date: October 30 each year.
What this includes:
Statement of Profit and Loss.
Balance sheet signed by the designated partners.
Should be signed by at least two designated partners and be certified by a Chartered Accountant, Cost Accountant, or Company Secretary. Both of these forms must be filed, and there is no cap on missing Forms, as you will attract a penalty of ₹100 per day per form missed. This could become quite costly.
What About If You Miss the Deadline for Filing?
Non-compliance isn’t going to sugarcoat anything, it is going to cost you money.
Here is what happens:
Late submission incurs ₹100 a day per form, with no maximum.
Repeated non-compliance can lead to the disqualification of the partners.
You will result in having your LLP designated as defaulting and publicly noted on the MCA portal.
Eventually, the ROC (Registrar of Companies) may initiate the strike-off process, which would remove your LLP from the government books.
Takeaway point – file on time, save yourself some money, and save your LLP!
Common Mistakes of LLPs during the Annual Filing Process
There are a few classic mistakes that you want to avoid:
Leaving it until the last minute – the MCA portal might get super busy closing in on the deadline, and your uploads or payments might not go through.
Filling information incorrectly – Even filling numbers or names incorrectly can lead to rejections or penalties.
Not keeping proper bylaws or accounts – Even if there were zero overall sales, you are required to keep basic industry accounting documents.
Not filing because there wasn’t any business – the law doesn’t care if you did business or if that business was just for ₹1 crore or for ₹0 – you still have to file.
Incorrect digital signatures – Instead of pictures of real-time signatures, forms require each designated partner to input valid DSCs and digital signatures.
Bonus Tip: Keep your records clean and up-to-date
When you are filing your annual books of accounts, it is one thing to do this once a year, and something else to keep your books of accounts updated all year. Please keep track of the following:
Partner contributions and withdrawals.
All transactions (even if they are small).
Contracts, invoices, and receipts.
Meeting minutes (especially when there is a capital change).
If you keep everything clean all year, your annual filing will be much easier and faster. You will also increase the credibility of your LLP if you are trying to get funding, loans, or a partnership.
What to think about
Annual filing for LLPs does not have to be painful for you, it is a necessary part of running a legal and successful business in India. Do not think of it as something you have to do last minute, it is easier to be proactive than to be in a situation where you are paying for your ignorance or delay.
Still feeling like you cannot do it? You do not have to do it alone. There are filing professionals, such as kanakkupillai.co, who can do it all for you in a timely fashion, accurately, and economically.