ANNUAL COMPLIANCE OF LIMITED LIABILITY PARTNERSHIP

What Are the Annual Compliance for LLP?

  • An LLP (Limited Liability Partnership) in India has to file the annual return within 60 days from the end of close of financial year to maintain compliance and to avoid the heavy penalty for non-compliance.

  • Limited liability partnerships (LLPs) has less number of compliance to fulfill in contrast to Private Limited Companies.

  • It’s also compulsory to file Statement of Account & Solvency within 30 days from end of six months of the completion of financial year.

  • LLPs need only file information related to the Statement of Accounts and Annual Returns on an annual basis but failure to do so can prove to be very costly as penalties are very high in respect of non-compliant LLPs. Penalties may even go up to Rs. 5 lakhs in some cases.

  • In addition to above mandatory compliance, LLP must also file income tax return, GST return as per respective act guidelines.

Documents Required

  • PAN Card of the Partners.
  • Address Proof of the Partners.
  • Utility Bill of the proposed Registered Office of the LLP.
  • No-Objection Certificate from the Landlord.
  • Rental Agreement Copy between the LLP and the Landlord.

Time Frame

  • The ‘Annual Return’ is required to be filed within 60 days of close of the financial year and ‘Statement of Accounts & Solvency’ shall be filed within 30 days from the end of six months of the financial year to which it relates.
  • Every LLP has to maintain uniform financial year ending on 31st March of a year.

Advantages

  • Disciplined

Many businesses let their compliance requirements pile up, and compliance remains pending from their side to be fulfilled. Staying disciplined from the preliminary days will be immensely useful when the Annual Filing for LLP are looking for investment or a bank loan, as both would want to make sure that business is compliant with the Registrar of Companies’ (ROC’s) requirements.

  • Consistent Updates

Having a company secretary on call throughout the year is essential in ensuring that your business is run in accordance with the laws in force and updated thoroughly.

  • Saves Penalty

Non Compliance of LLP results in heavy penalty, so regular & timely compliance will save a lot of money on the part of LLP.

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