Any limited liability partnership firm is required to routinely file certain forms disclosing the required details from time to time. These compliance requirements are long and repetitive progress that needs to be diligently followed throughout the entity’s life.
As the business growth in the market is expected to be exponential, many companies and partnership firms are converting themselves into Limited Liability Partnership (LLP). An LLP has a lot of advantages over forming a company or, for that matter, an ordinary partnership firm. These benefits would amount to far fewer compliances to be followed, which would reduce the cash burden in many ways.
The formation of LLP itself is convenient as it requires only a minimum of 2 partners while at the same time it has no cap on the upper limit to the admission of additional partners. It also has no minimum capital contribution requirement start of the business. Also, the registration cost is relatively low, and the compliance guidelines are far less compared to a company. All this acts as an advantage in making it a cost-effective entity for any growing business.
While limited liability partnership firms have less specific disclosure requirements than the private limited company, each of these forms is to be filed at regular intervals. The forms to be complied by a bit of liability partnership firm are explained as below:
DIR3 KYC – any person holding a DIN is required to submit this form annually on or before 30th September of the following Financial Year.
Form 8: Statement of Accounts & Solvency should be filed on or before 30th October of the next financial year. Upon failure to comply, there will be a levy of a fine of Rs.100 per day of default.
Form 11 – Annual Return of the LLP needs to filed in Form 11 within 60days of closing your books, in other words, on or before 30th May of the next financial year.