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.
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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.
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The business must run in accordance with the laws in force.