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A Limited Liability Partnership has its legal status. As a result, a business must retain its active status by filing with the Ministry of Corporate Affairs regularly (MCA). Any LLP, whether for-profit or not, must file an annual compliance report. Annual LLP compliance necessitates the submission of two distinct forms. One is for the Annual Return, while the other is for the Statement of Accounts and Solvency.
The papers are filed in order to report the activities and financial data for the forthcoming financial year. Failure to meet LLP Annual Compliance criteria results in an extra cost of 100 each day of delay until the actual date of filing. As a result, in addition to the mandate, the severe penalty compels the Designated Partners to comply.
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A penalty will be assessed if the LLP Annual Return or Statement of Accounts and Solvency are filed after the deadline or not at all. As a result, the LLP's annual filing must be completed promptly.
Timely and accurate filing can aid in LLP compliance.
The Designated Partners are in charge of keeping up-to-date books of accounts and submitting annual returns to the MCA each fiscal year.
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Since its inception, every LLP has been required to file an annual report. The LLP must file both forms within the stipulated period, beginning with the end of its first financial year.
Annual compliance is required for all LLPs, regardless of the number of transactions, turnover, or business activity done.
Audited books of accounts are required for every LLP that meets any of the following criteria:
1) If the LLP’s annual revenue reaches 40 lakh; or
2) Partners’ total contribution surpasses Rs. 25 lakh.
If the LLP does not meet any of the aforementioned conditions, declarations signed by the partners are adequate.
In the event of a filing delay, the LLP is charged with an extra Government fee of ₹ 100 for each day of delay. Furthermore, there is no upper limit on an extra cost. The RoC may remove the name of an LLP from its register if it fails to comply with yearly LLP compliance on a consistent basis. Aside from additional costs, the penalty may also be imposed on the LLP and its partners.
The due dates for filing Annual LLP is given below: