In India, Limited Liability Partnerships (LLPs) offer the advantages of limited liability to partners while ensuring flexibility in operations. However, like all legal entities, LLPs are required to fulfill a set of annual compliance obligations. For Mumbai-based LLPs, compliance with these requirements is essential to avoid penalties, maintain good standing with the Ministry of Corporate Affairs (MCA), and foster investor confidence.

This article provides a comprehensive annual compliance checklist tailored for LLPs operating in Mumbai, India.

Why Annual Compliance Matters for LLPs in Mumbai

Mumbai, as the financial capital of India, hosts a significant number of LLPs across various sectors—finance, real estate, technology, and services. Failing to comply with statutory requirements can lead to heavy penalties, disqualification of partners, or even the striking off of the LLP.

Annual Compliance Checklist for LLPs in Mumbai

1. Filing of Form 8 (Statement of Account & Solvency)

• Due Date: 30th October every year

• Applicable To: All LLPs, regardless of turnover

• Purpose: Declaration of solvency and submission of financial statements

• Penalty for Non-Compliance: ₹100 per day of delay (no upper limit)

Tip: Even if your LLP has no business activity, you must still file Form 8.

2. Filing of Form 11 (Annual Return)

• Due Date: 30th May every year

• Applicable To: All LLPs

• Purpose: Details of partners and changes therein

• Penalty for Non-Compliance: ₹100 per day of delay

3. Income Tax Return (ITR-5)

• Due Date:

  • 31st July (if audit not applicable)

  • 31st October (if audit applicable)

• Applicable To: All LLPs, regardless of turnover

• Penalty for Late Filing: Up to ₹10,000 under Section 234F

Note: LLPs with a turnover exceeding ₹1 crore (for business) or ₹50 lakh (for profession) must undergo tax audit under Section 44AB.

4. Audit of Accounts

• Threshold: Mandatory if turnover exceeds ₹40 lakh or capital contribution exceeds ₹25 lakh

• Auditor Appointment: Within 30 days of incorporation or before the end of the financial year

For Mumbai LLPs: Make sure to appoint a qualified Chartered Accountant in practice.

5. DIR-3 KYC for Designated Partners

• Due Date: 30th September every year

• Applicable To: All designated partners who have a DIN

• Penalty for Non-Compliance: DIN gets deactivated with a fee of ₹5,000 to reactivate

6. Maintenance of Statutory Registers & Books

• Maintain records such as:

  • Partners’ register

  • Minutes of meetings

  • Books of account (cash book, sales register, purchase register)

• Keep records for at least 8 years as per MCA norms

7. GST Returns (If Registered)

• Monthly/Quarterly returns (GSTR-1, GSTR-3B)

• Annual Return (GSTR-9) if turnover > ₹2 crore

8. Professional Tax Registration and Returns (Applicable in Maharashtra)

• Monthly Returns: For entities employing staff

• Annual Return: If no employees

Mumbai LLPs must ensure timely payment and filing under Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975.

9. TDS Returns (If Applicable)

• Form 24Q/26Q/27Q

• Due Dates: Quarterly (31st July, 31st October, 31st January, 31st May)

Additional Tips for Mumbai LLPs

• Register for MSME benefits if applicable (Udyam Registration)

• Update LLP Agreement if there are changes in business activity, capital, or partners

• Use a compliance calendar or partner with a professional firm to avoid missed deadlines

Consequences of Non-Compliance

• Heavy monetary penalties (₹100/day per form)

• Legal prosecution

• Inability to expand, raise funds, or open new branches

• Loss of credibility with clients and investors

Conclusion

Staying compliant isn't just a legal necessity—it builds trust and ensures smooth operations. Whether you're a small LLP or a fast-growing one in Mumbai, maintaining a clear view of annual compliance requirements is crucial in 2025 and beyond.