COMPLIANCES

BRIEF ON LLP : The registration of a Limited Liability Partnership (LLP) offers a business structure combining limited liability and partnership flexibility. As a legal entity, it is fully accountable for its assets. Introduced in 2009 under the Limited Liability Partnership Act, it suits small and medium-sized enterprises. Incorporating an LLP requires a minimum of two partners with no upper limit. One partner is not liable for another’s misconduct or negligence. Partner rights and duties are governed by an agreement. An LLP cannot issue equity shares, making it unsuitable for raising equity funds. ABOUT LLP COMPLIANCE The partners in a Limited Liability Partnership (LLP) are responsible for maintaining accurate books of accounts, filing Income Tax returns, and submitting an annual return to the Ministry of Corporate Affairs each financial year. To ensure the smooth continuity of the LLP, returns must be filed periodically to maintain compliance and avoid substantial penalties for non-compliance. Although LLPs have fewer compliance requirements compared to private limited companies, the penalty rates for LLPs are significantly higher. LLPs are not required to audit their books of accounts unless their annual turnover exceeds INR 40 lakh or their capital contributions exceed INR 25 lakh. Therefore, an audit is not mandatory for LLPs below these thresholds           BELOW ARE THE REQUIRED PARAMETERS :- Preparation of Books of Accounts Preparation of Financial Statements Audit by Independent Auditor Annual ROC Return Filings Filing of Income Tax Return Maintenance of Statutory Registers

A Private Limited Company is the most common form of business establishment. Upon incorporation, various company compliances must be adhered to. It is mandatory for a Private Limited Company to file an annual return and audited financial reports with the Registrar of Companies (ROC) for each fiscal year. Regardless of turnover or business status, annual compliance is obligatory for all companies. Continuous failure to file the required compliance documents may result in the company being struck off the ROC register. Benefits of Compliance. Adhering to regular compliance significantly enhances a company’s credibility, as evidenced on the MCA portal. Proper compliance records attract customers, facilitate government tenders, and assist in loan approvals. Investors prioritize financial and compliance records before investing. Therefore, consistently filing annual returns is essential. Non-compliance results in substantial penalties and can harm the company’s profitability and reputation. DOCUMENTS REQUIRED : PAN card of the Company Certificate of incorporation MOA and AOA of the Company Audited financial statements Audit Report and Board Report. DSC of Director