Annual Compliances for Private Limited Company and LLP

Published on 13 Oct 2016 by Team

Running a company doesn’t seem to be an easy task at least not for the faint of heart. Besides all the business stress, financial pressure, customer’s demands, salaries expectations from employees are enough reasons to make anyone snap. But even all of this is perhaps not so much of a headache for entrepreneurs as the massive legal and regulatory requirements the Government expects you to fulfil as a Private Limited Company.

Annual Compliance for Private Limited Company

Every Private Limited Company is required to comply with Annual Requirements of ROC and Income Tax. To understand the legalities of all these compliances, it is better to consult top corporate lawyers in India or CA Consultants. The following compliances are mandatory for any private limited company:

  • Income Tax Return every year before 30th Sep,
  • File Form MGT-7: Statement of Disclosure of ShareHolders and Directors - within 60 days from the date of Annual General Meeting (AGM)
  • File Form AOC-4: Annual Return of Companies before 30th September every year.

Documents required for Audit, ITR filing and ROC filling of your Company

The documents required for these annual compliances include:

  1. Bank Statements of all accounts in the name of Company and Individual.
  2. Sales Tax/Service/TDS Tax returns if any
  3. Invoices for all purchases and sales.
  4. Invoices for all types of expenses.

A good corporate attorney in India or CA in India can help you with your business's annual compliances.

Procedure For Annual Compliance fulfilment

The procedure involved with annual compliance of a company comprises of numerous formalities. The following procedure is followed for the purposes of annual compliances:

  1. Maintain Proper Books of Accounts.
  2. Prepare and File Balance Sheet
  3. Get your accounts Audited by Chartered Accountant
  4. File Form ADT-1, MGT-7 and Form AOC-4 with ROC
  5. File Income Tax Returns with Income Tax Department

Need for Annual Compliance

  1. Late filing or non-filing of Annual Return before the due date will attract a penalty 12 Times of Normal Fees.
  2. Further, the Company cannot be wound-up or closed without the filing of the return.

Therefore, it is best to file the Annual Return within the due dates and avoid any legal hassles. The best corporate advocates in India and CA Experts in India can help you with the legal procedures and ensure that you don't miss out on any deadlines.

Private Ltd Company and OPC (One Person Company) are governed by The Companies Act, 2013and the corresponding company rules. There are various norms as mentioned above right from the preparation of accounts books to preparation of financial statements and getting most of the important events approved by way of conducting board and general meetings with corresponding ROC (Registrar of Companies) filings.

Click here for a hassle-free and affordable way to deal with all your Private Limited Company compliances!

Similarly, in LLP, immediately after incorporation, should comply with the statutory requirements of the Limited Liability Partnership Act, 2008 and the corresponding LLP Rules. It becomes essential to take note of all the key compliance so that you, as an entrepreneur, are aware of the entire regulatory framework of your business and seep through the difference in these entities to take an informed decision.

Click here for a hassle-free and affordable way to deal with all your Limited Liability Partnership compliances!

Annual Compliance for LLP

All the Limited Liability Partnership registered under the LLP Act, 2008 are required to file the following returns mandatorily whether the LLP does business or not.

A. Filing with Registrar of LLP

1. Filing of Annual Return
An LLP is required to file the Annual Return with the Registrar of LLP (Form 11) within 60 days of closure of its financial year. An LLP have to close its financial year on every 31st March. So, the Annual Return is to be filed on or before 30th May every year.

2. Filing of Annual Accounts
Every LLP has to maintain books of accounts as per double entry system of accounting and prepare a Statement of Accounts and Solvency (Accounts) every year ending on 31st March. LLP have to file such Accounts to the Registrar of LLP (Form 8) within 30 days from the end of 6 months of that financial year. So, the filing of Accounts is to be filed on or before 30th October every year.

In case of an LLP whose annual turnover exceeds Rs.40 lakhs or whose contribution exceeds Rs.25 lakhs, shall be required to get its accounts audited by a CA.

B. Income Tax

As per Income Tax Act, LLP has to close its financial year as on 31st March every year and have to file the returns with Income Tax Department. In case of LLP whose annual turnover is more than Rs.100 Lakhs, the accounts have to be audited as required under Income Tax Act as well.

  • LLP have to file its Income Tax Returns on or before the due dates as follows:
  • LLP whose accounts are not required to be audited under any Law-31st July of every year
  • LLP whose accounts are subject to Audit under any Law-30th September of every year 

Procedure for Annual Compliance fulfilment

  • Maintain Proper Books of Accounts.
  • Prepare and File Balance Sheet
  • If your turnover is More than 40 Lakhs, get your accounts certified by CA
  • File Form 8 and Form 11 with ROC
  • File Income Tax Returns with Income Tax Department

Need for Annual Compliances

  • Late filing or non-filing of LLP Annual Return or Statement of Accounts and Solvency before the due date will attract a penalty of Rs.100 for each day of default.
  • Further, the LLP cannot be wound-up or closed without the filing of the return and the penalty doesn't have a ceiling.
  • Therefore, it is best to file the Annual Return and Statement of Accounts & Solvency of an LLP in time to avoid heavy penalty.

There is nothing better than a Private Company from an Investor’s perspective and credibility; however, the cost of compliance is definitely higher. If you want to take it slow and steady and raising funds is not on cards, hitch to the easiest and simplest option of an LLP.

Give us all your Compliance headache, we will get your Annual Compliances done. Talk to the best company law advocates in India and avail the services of top CAs near you. Call Legistify at 846-883-3013 or send us an email at [email protected]


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