Limited liability partnerships (LLPs) have lesser annual compliances to deal with, in comparison to private limited companies. LLPs must file information related to the financial statement of accounts (LLP Form 8
) and annual returns (LLP Form 11) on annual basis. Penalties are huge for failures to comply. Entities will be fined heavily, with penalties going up to Rs. 5 lakh in some cases if they fail to do so.
- Various business entities let their compliance requirements pile up, even though checking them requires much less effort. When opting for an investment or a bank loan, business when compliant with the Registrar of Companies (RoC) requirements serves helpful for the same.
- The business must run in accordance with the laws in force.