Penalty for Non-filing of LLP annual returns – Can winding up save penalty?

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?”

Equalization Levy

The digital economy in India is growing at a rapid pace by each passing year. Till recently, most of the Non Resident companies, which form an integral part of providing digital services did not have to pay any tax in India. Neither were they subjected to any withholding taxes, since the performance for the services were not executed in India. Moreover, as they do not have a Permanent Establishment in India, their revenue cannot be attributed to the operations in India. Hence, no tax applies on the same. Continue reading “Equalization Levy”

How to convert Proprietorship to a Private Limited Company

Many small business owners start out as sole proprietors of their firms. Sole proprietorship is the most common and simplest form of business structure. This form of business has its own advantages: easy formation, limited paperwork, small capital requirement, and minimum compliance requirements.

As the business starts spreading its roots, the next logical move would be to expand operations to accommodate large business needs. The experience acquired as a sole proprietor helps the entrepreneur to build a stronger foundation for his business when he chooses to transform it into a Private Limited Company. Continue reading “How to convert Proprietorship to a Private Limited Company”

What is Sweat Equity

The term Sweat Equity has recently gained immense importance in the corporate world. In simple terms, Sweat Equity shares refer to Equity Shares given to the employees of an organization in favorable terms, generally at a discount or for consideration, other than cash, for providing their know-how or making available rights in the nature of intellectual property rights or other value additions to the Company. Continue reading “What is Sweat Equity”