Compliance of LLP
Need of LLP
When we invest our money we always think that it gives more benefits with less risk in the same way when we plan to start our business we always chooses that medium which gives more benefits in less investment and compliances. An LLP is one of the medium it gives the benefits of two entities at one time i.e. company as well as partnership. As a company it gives the corporate entity to the business and as a partnership it imposes less compliance.
Structure of LLP
Minimum two individual required to form a limited liability partnership in which one must be resident of India, they are known as designated partner and holding a DPIN (Designated partner identification number) and there is no limit on the maximum numbers of partners. Under LLP one partner is not responsible for the misconduct of other partner and their liability is limited up to the amount contributed in LLP and written as per LLP agreement. Every limited liability partnership shall use the word LLP at the end of its name.
Compliance of LLP
The first thought which come in mind when we hear the word compliance is burden but in case of LLP it is not. The main feature why LLP attract individual is its less compliances as compare to any kind of companies. The whole compliances are divided into two parts;
(1) Statutory Compliances
(2) Annual Compliances
These are those compliances which impose on entity by law and regulations form which it binds such as;
(a) To conduct meetings:
(i). First General Meeting- within 30 days from the date of its incorporation.
(ii) Executive committee meeting- 2 in one financial year
(b) Maintaining of minute book
(c) Maintaining of books of accounts
(d) Audit of accounts- It is mandatory if turnover exceed 40 Lakhs or contribution of LLP is 25,00,000.
(2). Annual Compliances:
A bunch of three compliance are applicable which is to be meet. The other name of this is mandatory compliance and to be meet out no matter business is conduct or any kind of activity is done or note in the financial year and in case of any default 100 rupees per day penalty will impose .
- Filling of annual return: A summary of partners including change in management if any is to be filled to ROC within 60 days from the closure of financial year.
- Filling of statements of accounts: Filed within 30 days after expiry of 6 months form the closure of financial year.
- Filling of Income Tax Return: It will depend on the audit status of LLP if audit is required then the date of filling of income tax return is 30th September otherwise it will be till 31st