Annual RoC Compliance Expenses of a Limited Liability Partnership (LLP)

What is the Annual Compliance of a Limited Liability Partnership?

A limited liability partnership or LLP has the advantage of meeting lesser requirements for them to comply with annual return filing, in contrast to private limited companies which have many more requirements to meet. They need to present data related to their accounts on an annual basis. Their statement of account and solvency has to be presented every financial year. The organization possesses a separate status and has to directly submit its filing to the ministry of corporate affairs (MCA). Though leverage does exist but to balance this out, the value of the penalties is exorbitant, if the LLP’s are not able to comply with the criteria given to them. Entities, which cannot produce the requisite information, have to pay penalties, which can go up to Rs. 5 lakh.

Important requirements for Filing Annual Compliance

Discipline:

Every LLP has to maintain an annual statement of account and solvency, which has been regularly updated. Also, they have annual file their compliance, and failure to do so may result in hefty penalties. They need to meet their annual requirement and criteria and cannot show callousness in doing so. If discipline is properly maintained, these LLP’s are granted loans easily and receive handsome funding readily from investors. This happens because their businesses comply with the standards of the Registrar of Companies (Roc).

Be updated with the Registrar of Companies (RoC):

To meet the right requirements and standards and to correctly present the annual compliance filing, it is essentials to be in touch with the registrar of companies and to keep your firm/organization updated with any changes that might be made.

Checklist for filing of annual compliance

1. Returns need to be filed annually with the Registrar of Companies (RoC)
2. The returns need to be filed according to the format, which is authorized and provided, which is LLP form 11.
3. The return needs to be filed within 60 days, before the closure of the fiscal year, or on the 30th of May of every year.
4. PAN Card and Certificate of Incorporation of LLP
5. The Limited liability partnership Agreement

Documents required for filing the annual compliance

Form 8:
It is a document that presents the details of the accounts of the LLP. It has profits and other financial data. Form 8 must be filed within 30days, before the beginning of the last 6 months of the financial year. Ensure the following things:

• It has been signed by two of the designated partners of the firm.
• It has to be certified by a chartered accountant/company secretary.
• It has2 parts:
  • Part (A) Statement of solvency
  • Part (B) Statement of Accounts, Statement of Income & Expenditure.

The penalty for not filing this form is Rs.100/day until it has complied.

Form 11:
This document is a summary of all the management affairs of the LLP. It includes:

• The number of partners in the firm.
• Total contribution, obtained by each partner.
• The details of each partner
• Summary of each partner.

This form should be filed within 60 days before the closure of the financial year along with the prescribed fee. The date for filing this form is 30th May of every year.

Any LLP cannot proceed with the process of closure before filing for its annual returns. To avoid penalties, the returns must be filed before the due date.