Annual Compliance for LLP

Annual Compliance for LLP

An LLP incorporated under LLP Act 2008 has to comply with different laws provided by authorities such as the Ministry of Corporate Affairs (MCA), Income Tax Department, GST Departments, etc. Annual Compliance of LLP is all about bookkeeping and accounting, auditing, payment of taxes, regular filing of annual returns, financial statements, Designated Partners KYC, and all other compliances as required from time to time. Every LLP incorporated in India irrespective of its size and turnover has to carry out annual compliances as applicable.

An LLP is required to manage various operations in day-to-day business in line with the complex corporate and tax laws, which can be sometimes a difficult task. Therefore, it is advisable to carry out various activities under the guidance of a professional for understanding the legal requirements and timely fulfillment of the compliances so as to avoid penalties and fines.

Advantages Of Annual Compliance for LLP


  • Get an easy loan, finance, and subsidies

LLP’s credibility and reliability are measured by the financial statements and regularity in compliance. An LLP with a good track record can easily approach government and private organizations for loans, financial assistance, subsidies, tenders, and other similar purposes based on its established credibility, reliability, and reputation.

  • Avoid Heavy Penalty

Statutory compliances are to be compulsory and followed under law, if an LLP does not follow the compliances regularly or doesn’t file required returns within the specified time period then the government charges heavy penalties and punishment on the LLP and its partners. Therefore, filing multiple compliances on time will help the LLP to avoid heavy penalties, as the cost of non-compliance is always greater than the cost of compliance.


  • Attracts Potential Investors

Potential investors usually inspect the financial records and compliance status of the LLP under various laws, before investing in any LLP. Therefore, LLPs with proper and regular compliance are preferred more for funding and investment by investors.


 Read more - All you need to know about Annual Compliance for LLP


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