PRACTICE DETAILS
- Lawyer Mr. Shaman Jain
- Skills Secretarial Compliances
- CATEGORY Compliances, Secretarial Compliances
ABOUT THIS PRACTICE
Compliances that are to be fulfilled by Limited liability partnerships (LLPs) are very little in comparison to private limited companies. LLPs just require file information related to statement of accounts and annual returns on an annual basis. Failure of compliance invite massive penalties. Heavy penalties going up-to even 5 lakh in some cases are imposed on establishments which fail in compliance.
Benefits of Annual Compliance
- Higher Credibility: Credibility of an organization can be measured effectively through compliance, whenever we need loan approvals or any other similar requirement. Legal compliance is a basic requirement for any business. The MCA portal displays the status of LLP annual filing and it is accessible to any person .
- Record of Financial Worth: LLP annual filing grants it's financial worth and capacity record to an interested person or party and since, the forms filed by the LLP are accessible by companies the financial worth of the company can easily be evaluated by the concerned party before entering into a contract.
- Maintain Active Status and avoid penalties: LLP needs to file the return regularly so as to maintain an active status, also one can save heavy additional fee and any kind of penalties by following the filing process regularly. Failing to file consecutively can declare the LLP as inoperative or can also receive a default status. It can also declare the partners as defaulters and may also lead to their disqualification from further appointment in LLP or company.
- Easy conversion and closure: Annual filing is vital whenever it comes to converting the LLP into an organization. Conversion task is facilitated by an updated compliance record . Annual filing is also essential during the closure of LLP. The registrar may instruct you to fulfill the annual compliance, with an additional LLP filing fee, if applicable even in the cases of LLP being non-functional.
Documents Required
- PAN Card & COI: PAN Card and Certificate of Incorporation of LLP
- LLP Agreement: The LLP Agreement along with any supplementary agreement, if any
- Financial Statements: Financial Statement of LLP duly signed by the Designated Partners
- Digital Signature: DSC of all Designated Partners is required
Due Dates of compliance for LLP
- LLP Form 11 (Annual Return of LLP) : 30th May
- LLP Form 8 (Statement of Account & Solvency) : 30th October
Process of LLP Compliances
- Discussion and collection of basic Information
- Provide Required Documents
- Decide the due dates of filing
- Drafting necessary documents
- Drafting necessary documents
- Filing of Statement of Accounts & Solvency (Form 8)
