Annual compliance for LLPs
A limited liability partnership in India has separate compliances. It is completely different from other types of entities. It enjoys some benefits, such as:
1) They are a separate legal entity
2) LLPs can buy, sell, and the movable and immovable assets
3) They have the power to sue and to be sued
4) LLPs can open their bank account
5) They have the power to employ a person
6) LLPs can enter into any type of legal contracts
An LLP is separate from all its partners and has perpetual succession. Thus, as an LLP, a company needs to ensure its active status by regular filing with the ministry of corporate affairs. Any LLP registered in India must file annual filings with MCA. Whether you are having a business or not, if you are registered under the LLP registration, you must file all the annual filings. The LLP Annual compliances require filing two separate forms. One is the annual return form, and the other one is for the statement of account and solvency.
All these forms are filed to report the activities and transactions of an LLP in every financial year. If any LLP fails to file the annual compliances, then they will be held liable to pay a penalty of INR 100 for each day of delay. Thus, every LLP in India must file annual filings to avoid penalties.