Importance points of annual compliances of LLPHemlata Khandelwal / 2022-03-11 06:17:42
Why are Annual Compliance Filings Important?
Annual compliance filings are important for companies as entities that do not comply can be fined up to Rs 5 lakh.
What are Annual Filings?
Every company registered under the Companies Act has to file its return annually with the Registrar of Companies. The company's annual report, director's report, as well as the company's audited annual financial accounts, are filed with the Registrar of Companies.
What are the benefits of filing annual complaints for LLP?
- High Reliability – Annual compliance for loan approvals or any other similar requirements provides high credibility to the organization.
- Record of Financial Value - Annual compliance filing by LLP provides record to other companies about their financial value which may result in new and interested investors.
- Stay Active and No Penalty - With regular filing the LLP is not declared as impure and remains active. Also annual compliance filing is mandatory and hence they include penalties (additional charges) in LLPs when they default on filing.
Conversion or winding up - Regular annual compliance filings facilitate the conversion of limited liability partnerships to other types of companies as well as speedy resolution in case of dissolution of the partnership.
What are the checklist items for filing annual compliance?
- LLP Annual returns are required to be submit online with the Registrar of Companies.
- Annual return has to be filed as per the prescribed format of LLP Form 11.
- It is required to be filed within 60 days from the close of the financial year or on 30th May of each year.
- LLP Annual Compliance has to be completed by every registered LLP even if there is no business activity. In fact this has to be done even if the LLP has been wound up and the business bank account exists or not.
What are the important requirements for filing Annual Compliance?
- Please maintain discipline:
It is essential for businesses to be disciplined and alert to meet their annual compliance requirements. Though being curious can result in hefty fines, not to mention that LLPs that meet the annual compliance requirements are often given quick or easily funded loans by investors as these businesses are registered with the Registrar of Companies. Companies (ROC) requirements.
- Regular updates from ROC ( Registrar of Companies):
With a company secretary throughout the year, you can ensure that your business is operational.