LLP gives the benefit of both Company and of a Partnership. As a company it gives the corporate entity of a business and As a partnership it imposes less compliance on the partners. To form LLP minimum two individuals are required to start a LLP and out of which one individual must be Indian Resident, they are known as designated partner, and holding a DPIN ( Designated Partner Identification Number). Under LLP one partner is not responsible for the misconduct of another Partner.
LLP Annual Compliance : Why Needed
Compliances of LLP
The Compliances under LLP is divided into two parts i.e. statutory compliances and annual compliances.
- Statutory Compliances -
- To conduct meeting- First general meeting should be conducted within 30 days from the date of its incorporation and 2 Executive meeting should be held within one financial year.
- Maintaining of minute book
- Books of accounts of LLP should be maintained.
- Audit of the accounts is mandatory for those companies whose turnover exceeds 40 lakhs or contribution of LLP is 25,00,000/-
- Annual Compliances -
- Filing of Annual return is mandatory and ROC should be filed within 60 days from the closure of financial year.
- Statement of accounts shall be filed within 30 days after the expiry of 6 months from the closure of financial year.
- Income Tax of LLP should be filed by every LLP either on 30th September if audit status of LLP is required or otherwise it will be filed on 31st.