Company Compliance

Name of a company is its unique identity, and the same is also found in the first clause of the MOA (also known as Name Clause). In case the management of the company desires to change the name of the company, then it can be done with the consent of its shareholders and the approval of the registrar of companies. The reason for a change of name of the company can be many, such as new branding plan, mergers and amalgamation, a shift in business activity etc.; However, the procedure shall be adopted similarly in all cases. The companies act, 2013 and the rules there under have laid down a clear & non-ambiguous method to change the name of a company. As the name of the company is mentioned on the MOA, AOA, Pan Card, Tan Number, GST Registration, etc.; after its change, the same must also be altered.

Companies registered in India need to file an annual report with the Registrar of Companies (ROC) and Income Tax department after the finalisation of financial statement on 31st March every year. The due date of Company ITR is 30th September. For the financial year 2018-19 the due date is 30th September 2019. A Private Limited Company is required to keep and maintain proper books of account, records, registers and minutes of the meeting. At the same time, after the end of the financial year the company has to file company annual return to the ROC and Income Tax Department. For a company which is incorporated prior to 31st December of 2018, both the ROC Returns as well as ITR is applicable. However, for companies incorporated after 1st Jan 2019, only ITR is to be filed for the FY 2018-19. We are here to help you for ROC Filing procedure, call us to understand annual filing for private limited companies.

The Limited Liability Partnership is a creation of law and thus is required to administer its affairs as per the LLP agreement, the governing LLP act and the rules framed there under. The LLP is also subject to laws applicable to any other form of business such as local laws, tax laws and laws regulating specific activity. Being, a legal entity to carry any change in LLP, like its name, object or address it has to follow some specific procedure. Limited Liability Partnership is advancement over the traditional form of partnership business where the liability of partners is limited to the extent of the contribution amount of the partner. The LLP Act, 2008 is the regulatory legislation, which prescribes the methods of incorporation of an LLP and its administration. The LLP agreement entered into by the partners is another crucial document which acts as the constitution for the LLP. After incorporation of the LLP, the designated partners are entrusted to run the LLP legally and to ensure that the LLP is always complying with the laws at all times. There is certain compliance which is required to be complied with by the LLP immediately after its Incorporation as it is a legal entity and separate from its promoters.

As an LLP is a creation of law, it can be closed by procedures established by statute only. The reasons for closure could be many. However, the circumstances in which an LLP is being closed is what matters for the process which needs to be adopted. A business may be required to be closed due to various reasons, like non-operation, closure of business, recurring losses, the passing of the key managerial person, the dispute among promoters, un-ability to pay debts of the LLP, etc. Closing or winding up of an LLP is a challenging task, where the designated partners and all partners must first decide on the best method available under the LLP Act, 2008 to wind up theLLP. In case the LLP does not have liabilities or debts to pay it can be closed voluntarily by a unanimous decision of all the partners of the LLP and after that, an application can be filed with the registrar to strike down the name of LLP from its register. However, where the LLP have debts to pay, or there are creditors/liabilities, the LLP must approach National Company Law Tribunal for closure.

Every LLP is under an obligation to file Form 11 and Form 8 with the ROC and Income Tax Return for the previous financial year, which ended on 31st March 2019. These compliance are mandatory in nature and if not filed within time results in a heavy penalty. The LLP has to prepare and file the following three returns for the past previous year within its prescribed due dates. These are mandatory in nature, team zavianservices shall be assisting to prepare and file necessary returns in a timely manner.