What is Annual Filing for LLP?
Limited liability partnerships (LLPs) has a smaller number of compliances to fulfill in contrast to private limited companies. LLPs need only file information related to the statement of accounts and annual returns on an annual basis but failure to do so can be very costly as penalties are very high in respect of LLP noncompliance. Penalties may go up to Rs. 5 lakhs in some cases.
Advantages of Annual Filing for LLP
Many businesses let their compliance requirements pile up, and compliances remains pending from their side to be fulfilled. Staying disciplined from the preliminary days will be immensely useful when the Annual Filing for LLP are looking for investment or a bank loan, as both would want to make sure that business is compliant with the Registrar of Companies' (ROC's) requirements.
- Consistent Updates
Having a company secretary on call throughout the year is essential in ensuring that your business is run in accordance with the laws in force and updated thoroughly.
- Time Frame
Once the necessary documents like annual accounts etc are received the filings are done within the time frame mentioned or provided by ROC.