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
LLP Annual Return Filing will be carried out by means of LLP e-Form 11. The form will require details of the Partners and changes, if any, along with capital information during the year. During the Changes in the period of reporting will be intimated or updated by this form. The Partners should also ensure that if any form of LLP annual compliance like Form 3 & 4 were needed to be filed will be submitted and verified before actually filling this form.
- 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
In the form of statutory registers, each LLP incorporated under the act of 2008 of LLP, that is required to maintain certain records about the organization. Benefits Of LLP Annual Compliances Higher Credibility For any corporation, compliance with the law is a primary requirement. The record of annual LLP filing is shown on the LLP's Master Data website on MCA and any individual may access the same. It is a basic criterion of Compliance to assessing the organization's credibility for loan approvals or any other relevant criteria. Record of Financial Worth The reports submitted by the LLP are available to companies Therefore, when entering into agreements or major projects, the party concerned may also inspect the financial value. LLP's annual report shall provide a record of its financial value and ability to an interested person or party.