Annual Filing for LLP With No Transactions
April 13, 2020
10 Income Tax Saving Tips for LLP
April 14, 2020
15 Post Registration Compliances for LLP
Limited Liability Partnership registration is first step in your startup journey. LLP is like artificial legal which is different from its partners. Your LLP incorporated have separate legal identity with its rights & duties. Partners/Designated Partners are responsible for LLP activities , compliance like guardian. As partner of LLP you must need to know Post Registration Compliances for LLP right from bank account opening to income tax return filing. LLP get registered after approval of LLP form 2 , however as LLP partner LLP your duty is not over , you need to take for LLP Post registration compliances. Here is Check List of LLP Compliances applicable after LLP Registration.
1# Apply PAN & TAN of LLP ( Immediacy )
Every LLP Need to apply for PAN & TAN registration. In case of Private Limited company they get PAN & TAN Number immediately. However for LLP , they need to apply separately for PAN & TAN Registration. This is online registration , make online application on NDSL Site and submit documents to NDSL. PAN is required for further GST , PF etc. registration and income tax return filing of LLP. This is first in the checklist.
2# File LLP Agreement ( With in 30 day )
LLP Agreement is need to executed once LLP is registered. This agreement need to registered on Government bond. This LLP agreement is executed physically. As a LLP partner its responsibility to submit LLP Agreement to Ministry of Corporate Affairs within 30 days from date of registration. Failure to file LLP Agreement post LLP registration attracts a heavy penalty of Rs.100 per day of default with no ceiling on the maximum fine.
3# LLP stationery
LLP Seal: LLP Seal is rubber stamp of LLP. This LLP seal have two format one is LLP Name and LLP Name with Partner. LLP Stamp is required post LLP registration for bank account opening, affix on legal documents , agreements etc.
LLP Letter Head: Prepare the LLP stationery like letterhead, invoice, official documents, etc., with the LLP name and registered office of the LLP.
4# Apply Bank Account Opening
Post incorporation of LLP , its important to open a current account of LLP in name of LLP. Bank account can be opened in any bank. Its partners responsibility to carry all firm transaction though LLP Bank account. For bank account opening LLP need to submit documents to bank.
- LLP Certificate
- LLP Agreement
- LLP PAN Card
- Partners KYC , Mobile No. & Mail ID
- Copy of resolution for bank account opening
5# Deposit Partners Capital
LLP post incorporation compliances is deposit partners capital contribution in LLP bank Account. As per LLP agreement partners decide to start LLP with capital account. Its is advised to deposit capital from partners saving account via chque or / NEFT. Partners can make capital contribution in LLP cash or kind. Capital deposited in firm get recorded in firms annual balance sheet.
6# Bookkeeping of LLP
For Annual LLP Compliances and Tax filing LLP Need to maintain books of accounts. As per income tax Act LLP Can maintain books of account on cash / accrual basis. LLP can maintain books of account manually or with software. For companies government given format for preparing financial statements , however in LLP there is no prescribed format. Its is advised to LLP should maintain books of account at it registered office. Common types of LLP books as below.
- Cash book
- Sales register
- Purchase Register
- Bank Book
- Journal Book
7# Apply Shop Act Registration
LLP is a business establishment as per nature of business activity of LLP its is defined under Shop & Establishment Act. Ever registered LLP need to apply for Shop Act Registration post registration with in 30 days. Shop & Establishment registration is state requirement . From state to start registration provisions may change. Also known as Gumastadhara. If LLP having different office With in state or out of state LLP shall apply separate shop Act registration. Content of Shop Act as below
- Name of Business
- Activity of Business
- Date of Registration
- Address of office
- Number of employees
8# MSME Registration
MSME development Act for SME benefits. MSME stands for Micro, Small and Medium Enterprises. In a developing country like India, MSME industries are the backbone of the economy. Where LLP Apply for any bank loan , MSEM registration certificate helps to get bank loan at reduced rate. Even for filing government tenders MSME registration is required.
9# Professional Tax Registration
Professional Tax is registration is payment of tax to state government. LLP when hire employees it comes in relation of employer and employee. Every employer in specific states is required to deduct taxes from salary when paid to one or more employees. Applicability limit of professional tax differ from state to state. Post incorporation of LLP , it should apply for professional tax registration. If LLP having branches in different states then , this registration need to be applied state wise.
10# GST Registration
Every business with annual turnover exceeds Rs. 40 lakhs or Service providers 20 lakhs is required to GST Registration under Goods and Services Tax (GST). However this registration can be applied suo moto. Where LLP finds that post registration , GST Registration is important for business then can apply for GST registration. Most of cases when LLP is dealing with B2B business / MNC companies vendor demands for GST Registered firm. In such case it become important to apply for GST Registration.
11# Auditor Appointment
In case of Private Limited company its mandatory to appoint auditor irrespective of turnover. In case of LLP there is requirement of audit if capital contribution exceeds Rs.25 lakhs or annual turnover exceeds Rs.40 lakhs. Post LLP registration if LLP turnover or capital contribution exceed prescribed limit then LLP need to get books of accounts audited.
- Turnover: 40 Lakh
- Contribution: 25 Lakh
12# Intellectual Properties
Business need to get protected them self for brand, product , formula etc. Due to dynamic and aggressive businesses new startups always have risk of losing brand etc. LLP who created it brand , product etc. need to get protection via IP registration. It helps in IP protection and help to business expansion.
Copyrights – If you are creating original or artistic works and content, consider protecting under Copyright. It could be a musical composition, painting, website, write-up, etc.
Patents – Do you find your product or process is true to test of invention? If yes, you must get your invention protected under Patents.
13# Trade Mark Registration
In dynamic business world for startups its important to protect there trade name. Once LLP is registered it dose not mean that name of LLP is protected. Name protection is limited under LLP / Companies Act. For business trade name become there goodwill. To protect LLP brand name ultimate protection is Trade Mark registration. Trade mark registration gives LLP to use name exclusively and results in brand creation.
14# LLP Annual Return Filing
As like Companies, LLP also need to its annual returns to Ministry of corporate affairs. LLP is under obligation to file annual return in form no. 8 and form no. 11. Due date of filing Form no. 11 is 60 days from date of end of financial year that is 30 May and for Form No. 8 due date is 30 October. For no filing of LLP , late filing fees of Rs. 100 per day per from applicable.
15# LLP Income Tax Return
Section 139(1) of Income Tax Act 1961 is applicable for LLP. For LLP financial year for income tax purpose start from April to March. For this 12 months LLP need to prepare its financial statements. On basis of this statement LLP calculates income tax payable / Tax refund due. Income Tax return need to filed irrespective of LLP turnover. Income tax return filing is mandatory for LLP.
- Regular LLP ITR filing Due date 31 July
- LLP Under audit ITR Filing Due date 30 Sept
Conclusion :
LLP Post registration few compliance are one time and few are continue in nature. Also some of compliances are event based. Hence as partner of LLP its important to care of compliance’s with in applicable due dates. Our professional exper team understand your LLP compliances requirement, We as you legal partner helps to take care of necessary LLP Compliances.
