LLP is subject to fewer compliance requirements when filing yearly returns compared to private limited company. Every year, LLPs must present information relevant to their statement of accounts and returns. Entities who fail to furnish the required information face stiff penalties, with fines of up to Rs. 5 lakhs. Failure to comply, on the other hand, carries severe penalties.
Annual compliance gives the company more credibility regarding loan approvals and other comparable criteria.
LLPs' annual compliance reports provide information about their financial worth to other companies, perhaps attracting new and interested investors.
LLPs are not declared defunct if they file regular reports, and they remain functioning. LLPs must also file annual compliance files, which entails penalties (extra fees) if they fail to do so.
Regular annual compliance filings make it easier to convert Limited Liability Partnerships into other forms of companies and to resolve partnership dissolutions more quickly.
A statement of annual return, or Form 11, is a document that contains information LLP should file an Annual Return in Form 11 only with Registrar within 60 days of the end of the financial year, i.e., Annual Returns must be filed by May 30th each year.
A statement of accounts (Form 8) is a financial statement. Every LLP must prepare and close its accounts by March 31st of each year. At least two Designated Partners must file Form 8 with the Registrar within six months of the end of the Financial Year, which is October 30th each year.
Since its formation, every LLP has been required to file an annual report. The LLP must file both forms within the statutory time limit beginning with the close of its first financial year.
Every LLP, regardless of the amount of transactions, turnover, or business activity conducted, is required to comply annually.
Only LLPs with annual sales of more than Rs. 40 lakhs or contributions of more than Rs. 10 lakhs are eligible. Companies have assets over Rs. 25 lakh are expected to have their accounts audited under the LLP Act.
The Annual Return (Form 11) summarizes all the Designated Partners, including whether the LLP's management has changed. LLP should file an Annual Return in Form 11 with the Registrar within 60 days of the financial year's end, i.e., Annual Returns must be filed by May 30th each year.
Yes, because of LLP is an separate legal entity so every year every LLP must require to file separate ITR.