It is compulsory to prepare financial statements and it doesn’t matter if any commercial activity is conducted or not. This is because the information will be shared with the ministry via forms. According to the double entry system, the records are prepared on cash or accumulated basis at owner’s request. Such accounts and statement shall be held at LLP's registered office address. Even if no business transaction is carried out throughout the whole financial year it is still necessary for LLP annual compliances to be filed to record the initial expenditure and assets incurred for its first financial year.
- Financial Statement
Financial statement includes preparing of general purpose financial statements which further includes its balance sheet and the profit and loss (P&L) statement, statement of cash flow and income tax statement.
For all LLPs, auditing is not compulsory; however, this depends on the specified requirements. For the turnover exceeding rupees fourty lakhs of LLP annual compliances and Partner's Capital Contribution exceeding 25 lakh, the compulsory audit requirement will be imposed.
- ROC Return Filing
Every company is required to file the Audited financial statement and annual return as per The Companies Act, 2013 within 30 days and 60 days respectively from the conclusion of the Annual General Meeting date. Filing of Audited financial statement is governed under Section 129 and 137 of The Companies Act, 2013 read with Rule 12 of the Company (Accounts) Rules, 2014 and annual return is governed under Section 92 of the Companies Act,2013 read with Rule 11 of the Companies (Management and Administration) Rules, 2014.
- Income Tax Returns
It is to be required for those LLP who are supposed to submit the tax audit which is to be file the return of income tax before 30th September each year and others will have to file till 31st July.
- Maintenance of Statutory Registers
Every Company shall maintain registers of Members in Form No. MGT-1.
Company shall maintain separate register of debenture holders or security holders in Form No. MGT-2 for each type.
These entries should be made in 7 days from the date of approval of allotment, Transfer of share, debentures or any other securities.
And in case of Buy-Back, Forfeiture, reduction, sub-division, consolidation etc. such entries shall be made within 7 days after approval for the same in register of members or in respective register.