Limited Liability Partnerships (LLPs) are necessary to comply with various statutory and regulatory requirements on an annual basis. We at Darshan Corporate Pvt Ltd help our clients with stress-free compliance and provide further guidance regarding financial matters. LLP annual compliance is done to ensure that this business entity remains in good standing with the govt. authorities.
Understand the common annual compliance obligations for Private Limited Companies:
- Annual return filing: In the majority of jurisdictions, LLPs are required to submit an annual return to the Registrar of Companies or a comparable administrative body. The registered office address, financial data, and details about the LLP's partners are normally included in the annual report. The yearly return filing deadline varies depending on the jurisdiction.
- Financial statement: LLPs frequently need to create and submit financial statements annually. Depending on local laws and regulations, these financial statements' structure and content may change. Financial statements that have been audited may be necessary on occasion.
- Income tax return: LLPs normally have an annual income tax return filing requirement. The LLP's earnings, outlays, and other financial information should be included in this return. Be sure to fulfill all tax duties and pay any taxes that are due on time.
- Statutory record maintenance: Statutory record maintenance includes minutes of partner meetings, accounting records, and partnership agreements. It is essential to keep a proper record of compliance with the law.
- Payment of annual fees: There are annual fees associated with managing LLP registration. The fees should be paid on time to avoid penalties and keep the LLP in good standing.
- Change notifications: If there is a change in LLP partners, registered office address, or other major details. These changes should be updated with the relevant govt. authority.
- Annual General Meeting: LLP needs to hold an annual general meeting annually to discuss the approved crucial matters and financial statements.
- Tax compliances: LLPs could also have other tax-related responsibilities in addition to filing income tax returns, like filing Goods and Services Tax (GST) or Value Added Tax (VAT) returns, where necessary.
Benefits of annual compliance of LLP-
- Credibility:Regular annual compliance of LLP boosts its financial worthiness and increases credibility. Before entering into a contract with LLP, the parties look for compliances filed by the LLP.
- Reliability: The Ministry of Corporate Affairs showcases the status of annual compliance for LLP on its certified website. Timely filing of annual compliance states the ethics and morals of the company
- Avoid penalties: Regular filing of annual compliances protects the LLP from being a defaulter and avoids heavy penalties. This helps in enhancing the LLP's reputation and prevents disqualification of any contract with the LLP.
- Convertibility and settlement:Annual compliance is also important for converting the LLP into a private limited firm. It not only simplifies the process of conversion but also makes it more worthy and reputable in the eyes of the Registrar of Companies.
Requisite documents required for filling an annual compliance:--
- The bank statement from 1st April to 31st March of the financial year opened in the name of LLP.
- Credit card statements, if the partner raises income on behalf of LLP
- Invoice of purchase and sale
- Invoice of expenses for the financial year
- Copy of GST, VAT, and other returns.
- Copy of TDS challan deposited.
You need to know before begin everything.
The 3 necessary compliance for every LLP:-
- Annual return
- Financial statement
- Income tax return filings
With Darshan Corporate, you can get your company registered within 15-20 working days. The process is entirely online. You need to submit the documents and hassle-free annual filings will be done.
Even if the LLP is not doing any business, it is mandatory to file annual compliance and financial statements with the Ministry of Corporate Affairs.