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As per the Delhi Municipal Corporation (Amendment) Act, 2003.. the properties falling under the Municipal Corporation of Delhi’s jurisdiction are liable…
LLP Compliances
What is LLP Compliances
LLP Compliances
In India, Limited Liability Partnerships (LLPs) enjoy distinct legal status and are required to maintain active status by regularly filing with the Ministry of Corporate Affairs (MCA). Annual compliance filing is mandatory for all LLPs, regardless of whether they are conducting business. LLP compliance in India entails submitting two separate forms: one for the Annual Return and another for the Statement of Accounts & Solvency. These forms report the organization’s activities and financial data for each financial year. Failure to meet compliance requirements incurs an additional fee of Rs. 100 per day of delay until the filing is completed. Consequently, the significant penalty incentivizes partners to fulfill these requirements promptly.
Mandatory Compliance for LLP in India
Once an LLP is incorporated, there is some mandatory compliance that an LLP is required to fulfill. If a Limited Liability Partnership fails to comply with these requirements, it may have to pay heavy penalties. Following is the list of vital compliance that an LLP needs to follow after the LLP Registration in India:
One-Time Mandatory Compliance for LLP:
LLP Form-3:
The LLP Partners are required to draft an LLP Agreement & a copy has to be filed with the Registrar of Companies (ROC) in LLP Form-3 within 30 days of LLP Incorporation.
PAN & TAN Number:
Every Limited Liability Partnership in India must obtain PAN and TAN from the Income Tax Department. With the LLP (Second Amendment) Rules, 2022, the same shall now be allotted with the Certificate of Incorporation itself.
Opening a Bank Account:
It’s vital to open a current bank account in the name of the Limited Liability Partnership with any Bank in India. All the transactions in the LLP Name should be transacted via the LLP Bank Account only.
GST Registration:
Every Business or company with an annual turnover of more than Rs. 40 lakhs (service providers Rs. 20 lakhs) is required to get GST Registration under the GST Act & Rules. It is not compulsory to obtain GST quickly after LLP Incorporation. The Limited Liability Partnership can obtain the Registration when required.
Non- Compliances for LLP
What are the Consequences of Non-Compliance for LLPs?
Delay in filing Form-8 and Form-11 of an LLP results in a penalty of Rs. 100 per day of default. Closing or winding up an LLP is not possible without filing Annual Accounts. Moreover, failure to comply with any mandatory requirements can result in substantial penalties.
Why Do You Need
Benefits of LLP Compliance in India
Easy Closer and Conversion of LLP:
For the LLP Conversion into any other organization or company, annual filing is very important. Regular compliance records ease the conversion task. The same applies in the case of LLP Closure. Even if the Limited Liability Partnership was non-operational, the Registrar may ask to fulfill LLP Compliance, with an additional LLP filing fee (if applicable).
Avoid Penalties:
With an intention to avoid huge penalties & fees, regular filing of forms protects Partners from being declared as defaulters. It also avoids further disqualification of contracts. Hence, Limited Liability Partnership needs to fulfill the Annual Compliance requirements. The non-fulfillment of LLP Compliance adds up in the form of heavy penalties till the actual date of filing.
High Credibility:
Legal Compliance is the main requirement for any business in India. The status of the LLP Annual filing is shown in the Master Data of the Limited Liability Partnership on the MCA portal & any individual can access the same. For loan approvals or any other requirements, compliance is a primary criterion to measure the Company’s Credibility.
Financial Worth Record:
The Forms filed by the Limited Liability Partnership are accessible by Companies. Hence, while entering into major projects or contracts, the concerned party may also inspect the financial worth. The annual filing provides its financial worth record & capacity to an interested individual or party.
Greater Reputation:
A vital requirement for any company is legal compliance. Anyone can access the Master Data of the LLP on the MCA portal to check the current status of the LLP Annual Filing. Compliance is a key factor in determining how trustworthy an organization or a Company is when approving loans or other needs of a similar nature.
Why Choose Us
Achieve Seamless Compliance with Expert Consultation
We are a team of seasoned professionals dedicated to simplifying compliance for businesses of all sizes. With years of experience in the industry, we have developed a deep understanding of regulatory frameworks and stay updated on the latest changes, ensuring our clients always remain ahead of the curve.
Tailored Solutions:
We understand that every business is unique. That's why we customize our services to align with your company's objectives and industry requirements.
Expert Guidance:
Our consultants possess in-depth knowledge across various compliance domains, enabling us to address your specific needs with precision.
Proactive Approach:
Compliance is not just about meeting current regulations but also anticipating future changes. We proactively guide you through potential challenges, ensuring long-term compliance.
Reliable Support:
Our team is committed to providing prompt and reliable support, whether you have a query or need assistance with an urgent compliance issue.
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