A Limited Liability Partnership has unique legal standing. A company must so consistently file reports with the Ministry of Corporate Affairs (MCA) in order to keep its active status. Any LLP, regardless of whether it operates a business, must submit an annual compliance filing. Two different forms must be submitted annually to maintain LLP compliance. There are two of them: one is for the annual report, and the other is for the statement of accounts and solvency.
The forms are submitted in order to record the operations and monetary information for each fiscal year in the next year. If the LLP Annual Compliance criteria are not met, there is an extra fee of Rs 100 for each day that passes until the actual filing date.
Benefits of Annual Compliances for Limited Liability Partnership
Financially Worth
The forms filed by the LLP are accessible to companies. Hence, while entering into contracts or major projects, the concerned party may also inspect the financial worth. LLP annual filing provides the record of its financial worth and capacity to an interested person or party.
Higher Credibility
Legal compliance is a primary requirement for any business. The status of the LLP annual filing is displayed in the Master Data of the LLP on the MCA portal and the same can be accessed by any person. For loan approvals or any other similar requirements, compliance is a major criterion to measure the credibility of the organization.
