All LLPs registered with the Ministry of Corporate Affairs need to file Annual Returns and Statement of Accounts for every Financial Year. It is mandatory for a LLP to file a return irrespective of whether it has done any business. There are three mandatory compliance requirements to be followed by LLPs.
- Filing of Annual Return
- Filing of Statement of the Accounts or Financial Statements
- Filing of Income Tax Returns
Continue reading “Mandatory Compliances for an LLP (Limited Liability Partnership)”
Being a Chartered Accountant and interacting with several entrepreneurs, I found that the most common question bothering startup founders is which business entity to form and what are the compliances of these entities. Hence, there is a need to summarize this essential information in a comprehensive manner and layman terms.
The three most preferred business entities in India – Private Limited Company, Limited Liability Partnership (LLP) and One Person Company (OPC) have some important differences in their compliance structure which affect their running costs as well. Continue reading “Compliances for Private Limited Company, LLP and OPC – a clear comparison”
Selection of the correct form of business entity is the most important decision taken by an entrepreneur. To make choices simpler and assist you in taking a well informed decision, here is a basic comparison chart of Private Limited Company vs LLP vs OPC – the three most common yet credible forms of business in today’s time. Continue reading “Private Limited Company vs LLP vs OPC”
Although Limited Liability Partnership is one of the most popular forms of starting a business, there are various compliances which are required to be followed annually once the business is incorporated.
The Annual Compliances of LLP primarily include:
- Filing of Annual Return of the LLP in Form 8 – Due date 30th October of the succeeding FY
- Filing of Financial Statements of the LLP in Form 11 – Due date 30th May of the succeeding FY
Continue reading “Penalty for Non-filing of LLP annual returns – Can winding up save penalty?”
The most common problem which startups or new ventures face while starting their business is whether to form a proprietorship or a Company.
Sole Proprietorship, being the most traditional form of business is still one of the most common types of business entity in India. The easy formation procedure and minimum compliance requirements in a Sole Proprietorship make it a ready option to start a business.
However, there are various disadvantages of a proprietorship which startups fail to understand at the initial stage. Continue reading “5 reasons why Private Limited Company or LLP is preferred”