All the benefits of a private limited company, such as the ability to raise capital easily and accommodate shareholders, come at the cost of increased compliance. While the majority of small businesses do not fulfil their compliance requirements in their opening years, they end up paying heavy penalties (up to Rs. 1 lakh a year) for failing to do so. In the worst scenario, such companies and their directors are even blacklisted for a short period of time.
Annual return is a mandatory filing to be made by all LLP’s in India. The Annual return along with the required documents must be filed with the Ministry of Corporate Affairs.
Statement of Accounts and Solvency is a mandatory filing that is required for all LLP in India. Statement of Accounts and Solvency contains a declaration on the state of solvency of the LLP by the designated partners and also information related to statement of assets and liabilities and statement of income and expenditure of the LLP
Annual return of a LLP is due within 60 days of close of financial year. Annual return of a LLP is due on or before May 30th of each financial year.
Late filing or non-filing of LLP Annual Return or Statement of Accounts and Solvency before the due date will attract a penalty of Rs.100 for each day of default.
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