What is Annual Compliances for LLP?
Limited Liability Partnership are those firms which are registered under the Indian LLP Act, 2008 and the LLP Rules, 2009 as all other Companies, LLPs are also mandatorily required to make some annual and periodic compliance with MCA, Income Tax Department, and other concerned Regulatory Bodies and Authorities whether the LLP’s Partners doing business or not.LLP’s really enjoys the separate status. Filing annual compliance is compulsory for any LLP, whether having a business or n't. Annual Compliance for LLP requires filing two separate forms from which the first one is for annual return and another one is for the statement of Accounting and Insolvency.
Requirement for LLP Compliance
It must that LLP’s follow their Financial Year from 1st April to 31st March. The LLP annual compliance has to be met by each & every registered LLP even if there is no any business activity. In truth, it has to be met even if the LLP has been close down and whether or n't a business bank account exists. LLP annual compliance has to be met on a compulsatory basis, irrespective of these situation.
Documents Required for LLP Annual Compliance
These documents are mandatory for Annual Compliances for LLP:
- PAN Card
- LLP Agreement
- Financial Statements
- Digital Signature
Due Dates for filing Annual Compliance for LLP
- LLP Form 11 (Annual Return of LLP) 30th May
- LLP Form 8 (Statement of Account & Solvency) 30th October
Benefits of Annual Compliance
- Higher Credibility
Legal compliance is a main requirements for any business. The Position of LLP Annual Filing is displayed at the Master Data of the LLP on Ministry of Corporate Affairs Portal and the same can be accessed by any other person. For loan approvals or any other same requirements, compliance is a major criterion to measure the credibility of the Organization.
- Record of Financial Worth
The forms fileds by the LLP are accessible by companies. Hence, while entering into contracts and major projects, the concerning party may also inspect the financial worth. LLP Annual Compliance provides the record of it's financial worth and capability to an interested person or party.
- Maintain Active Status and avoid penalties
In a case of successive default in annual filing, the LLP can be declared as defunct or receiveed default status. Always, The partners can be declared as defaulters and may also be disqualified from their further engagement in LLP or company. Regular filing also save the LLP from heavy additional fees and penalties.
- Easy conversion and closure
For conversion of the LLP into any other organization, Annual filing is very essential. The regular compliance records calm the conversion task. The same applies in case of closed of LLP. Even if the LLP was non-operational, the Registrar may ask to fulfill annual compliance, with additional LLP filing fees, if relevant.
Procedure of Limited Liability Partnership Annual Compliance
These are some steps mentioned under the process of LLP Annual Compliance Act :
- Fill the Form No.11
- Client have to provide balance sheet for filing form 8.
- Income Tax Return.
- Tax Audit Report.
- In the end, you have to fill Form No. 8