What is Annual Compliance for LLP?
Annual Compliance for Limited Liability Partnership (LLP)
Being an entity with separate legal existence, a Limited Liability Partnership (LLP) needs to maintain its active status by regularly filing with Ministry of Corporate Affairs (MCA). Whether having business in crores or no business, annual compliance filing is mandatory for LLP. Legal compliance of LLP needed to file two separate forms, one of which for annual return, where as another one is for Statement of Accounts and Solvency. With the filing of the above two forms, a LLP reports the activities and financial data for each financial year in the upcoming year. A penalty of Rs. 100 each day till the date of actual filing will be imposed to the LLP, which fails to file the compliance on or before due date.
AOC 4 and MGT 7A , Gov fee extra
Benefits of Annual Compliance
Enhancing Credibility of the LLP
Compliance of law is the primary requirement for any business. The annual filing date of any LLP is displayed on the Master Data at Ministry of Corporate Affair’s portal. The regularity in compliances is a major criterion to measure the credibility of a company when comes to the events such as Government Tenders or Bank Loan Approval.
Gauge the Financial Worth
While enter in to contract or major projects, the companies/individuals may inspect the financial worth of the firm. They may ask for the returns docs directly to the firm or anyone can access it from the portal of Ministry of Corporate Affairs, hence a proper annual filing report will enhance the financial worth of a LLC.
Avoid Penalties and Maintain Active Status
Heavy penalties will be charged to the LLP fails in filing the returns continuously and the status of the company turned to default. It may cause the company to be declared as defunct or removed from the RoC. The partners associated with the business will get disqualified and barred from their future appointments in LLP or company. The delay in filing may attract an additional penalty of Rs. 100 for each day of delay till the date of filing.
Conversion made Easy
Annual filing is essential for an LLP to be converted into any other organization or in the case of closure of business. The registry may ask to fulfill the annual compliance even if the LLP was non operational. A regular compliance record makes the conversion easier.
Documents Required for Annual Filing of LLP
- PAN CardPAN of LLP
- Certificate of IncorporationCertificate of Incorporation of LLP
- LLP AgreementLLP Agreement and Supplementary agreements, if any
- Financial StatementsFinancial Statement of LLP duly signed by the Designated Partners
- Digital SignatureDigital Signature Certificates of all Designated Partners
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
Book Annual Compliance Service for LLP in 3 Easy Steps
Step 01
Fill up the registration form
Select any package suits your requirement · Fill up the form which will take less than 10 minutes · Make payment through secure payment gateway. Step 02
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Your queries will be answered quickly and effectively · Provide details & Share documents required for Annual Compliances · Drafting of required documents for filing · Online filing of Financial Statement and other documents · Online filing of annual return of LLP Step 03
Annual Compliance for your LLP is done.
All it takes 5 working days* *Subjected to Government Processing Time.
The Process of Annual Filing of LLP
- 1
Day 1
Collection of Information · Discussion and Collection of required documents
- 2
Day 2-4
Verification of information and documents provided · Decide the dues dates of ROC Filing for LLP. · Drafting of required documents for filing · Attachment of supporting documents
- 3
Day 5
Filing of Annual Return (Form 11) · Filing of Statement of Accounts & Solvency (Form 8) · *Subjected to Government Processing Time
Frequently Asked Questions
LLP Annual Filing is necessary for every LLP since its incorporation. From the closure of its first financial year, the LLP must file both the forms within the prescribed time limit. The annual compliance is mandatory for every LLP, irrespective of the number of transaction, turnover or commercial activity undertaken.
In case of delay in filing, the LLP is charged with additional Government fee of Rs. 100 for each day of delay. Also, there is no ceiling limit to an additional fee. For continuous failure to annual LLP compliance, the RoC can remove the name of LLP from its register. Also apart from additional fees, the penalty may also be levied to LLP and its partners.
The audited books of accounts are necessary for the LLP falling under any of the below-mentioned criteria:1) If turnover of the LLP exceeds RS.40 Lakh; or2) Total contribution of Partners exceeds Rs. 25 Lakh.If LLP does not fall under any of the above criteria, statements with the signature of partners are sufficient.
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