LLP Annual Filing

Introduction

An alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership is known as limited liability Partnership (LLP). The LLP can continue its existence irrespective of changes in the partners; it is capable of entering into a contract and holding property in its own name. Mutual rights and duties of the partners within an LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be.

LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is called a hybrid between a company and a partnership.

It is a form of business which is came into existence through the LLP act 2008. It is a form of business having separate legal entity, is liable to the full extent of its assets but the liability of the partners is limited to their agreed contribution in the LLP.

Annual Compliances

A business incorporated in India has to fulfill a specific set of compliance, filings, and returns as prescribed under the provisions of various corporate and tax laws. In simple words, compliance means following rules and orders applicable to the entity. Every entity is governed under law and order and that entity needs to follow the rule and regulations prescribed by it. Legal and regulatory enforcement must be handled as an integral part of every corporate strategy. The executive board and management must consider the scope and consequences of the company's relevant laws and regulations. They need to set up a compliance management system as a supporting risk management program, as it significantly reduces enforcement risk.

Annual compliance means a specific set of compliance which a company has to fulfill post-incorporation in order to commence and continue its operations. Non-compliance of such compliance may lead to strike off of the company and disqualification of the directors of such Company. Annual compliance includes various returns to be filed with the MCA, Income Tax Authority, GST, etc.

Benefits of following up the compliance:

➲ Good Governance

➲ Ease in getting financial support

➲ Reduces organizational and individual risk

➲ Enhances confidence of shareholders and other stakeholders

➲ it helps in adhering to necessary industry and government regulation

Risk of Non-Compliance

➲ Cessation of business

➲ May lead to civil action by authorities

➲ Public embarrassment

➲ Damage to the reputation of the company and its employees

➲ Punitive action resulting in fines against the company/officials

Compliance Table:

Compliance applicable to Limited Liability Partnership