Every LLP, after its incorporation, has to complete certain compliances and procedural matters to be able to function smoothly. However, the overall compliance requirement for an LLP is less cumbersome as compared to the compliance requirements for a company. Some of the major compliances to be made by an LLP are enumerated hereunder:

x Every LLP has to maintain books of accounts as per double entry system of accounting.

x An LLP whose annual turnover exceeds Rs.40 lacs or whose capital contribution exceeds Rs. 25 lacs is required to get its accounts audited by a CA.

x Every LLP has to file its income tax return on or before the following due dates:

• July 31st, for LLPs whose accounts are not required to be audited.

• September 30th, for LLPs whose accounts are required to be audited.

x An LLP is required to file the following documents with the Registrar of Companies on a yearly basis:

• An Annual Return, to be filed within 60 days from the close of financial year, i.e., upto May 30th each year.

• A statement of account and solvency, to be filed within 30 days from the expiry of 6 months from the close of financial year, i.e., upto October 30th each year.

It is pertinent to note that non-filing of the above documents in time leads to a penalty of Rs. 100/- per day with no ceiling on the maximum fine that may be imposed on the LLP as well as its Partners. Therefore, it is best to ensure timely compliance with law.