It is mandatory for an LLP as well as a Company to adhere to the compliance requirements prescribed by the law (LLP Act of 2008 and Companies Act of 2013). While some of these requirements are left to the will of the Partners or Directors, others have been made compulsory by the law, not following which can result in heavy penalties. Annual Compliances LLP has to meet even if there is no business activity. It is also not relevant whether you have any business bank account. Even if you want to close your LLP, the compliances have to be duly met. Basic annual compliances are something that your business simply cannot afford to miss. Rigorous audit of the accounts of an LLP is mandatory by a qualified Charted Accountant, if its annual turnover exceeds INR 40 Lac or its total capital contribution becomes more than INR 25 Lac. LLP, immediately after incorporation, should comply with the statutory requirements of the Limited Liability Partnership Act 2008 and the corresponding LLP Rules. In order to achieve this, the accounts, records of partners meetings, changes in partners, and LLP Agreement should be prepared and vetted by your legal advisors at all times.
The annual statutory compliances for a Limited Liability Partnership (LLP) in India are much lesser than those for a private or public limited company, and these annual compliances for LLPs are the following:
1) Filing of the Annual Return
2) Filing of the Statement of Accounts & Solvency (SAS)
3) Filing of Income Tax Returns