Statutory Compliance Immediately After LLP Registration

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Once you complete with your limited liability partnership registration formalities, you would be excited to start with your business journey. However, there is something more to be done after you complete with your LLP registration in India. Certain post incorporation compliances shall be carried out after LLP registration. What are those compliances? Find out here!

Statutory Compliances Immediately After LLP registration

Here’s the list of statutory compliances, their description, applicable forms and due date that you should comply with after your LLP registration:

Sr. No.

Particulars

Description of Compliance

Form Applicable

Due Date

1

LLP Agreement

An LLP agreement is a well-structured written contract between the partners of the LLP containing the terms and conditions of the partnership arrangement. Following are the contents of the LLP agreement:

  • Name of the LLP
  • Date of the agreement
  • Parties to the agreement
  • Introductory provisions
  • Business activity
  • Place of business
  • Duration
  • Accounting and auditing aspects
  • Contribution of partners
  • Profit sharing ratio
  • Addition and deletion of partners
  • Arbitration and dispute resolution etc.

Form 3

Within 30 days after the incorporation of LLP

2

PAN application

LLP shall get registered with the income tax department by making an application allotment of PAN. It is one of the key KYC documents and is also required for obtaining GST registrations.

Form 49A

As soon as possible as it is essential for future business transactions

3

TAN Application

TAN is required for the purpose of TDS and TCS compliances. 

Form 49B

As soon as possible

4

Opening of bank account

LLP shall have a separate bank account for conducting all the business transactions.

-

As soon as possible

5

Maintenance of books of accounts as per section 34 of the LLP Act

The LLP shall maintain proper books of accounts either on a cash or accrual basis as per the double-entry system of accounting. The books of accounts shall be maintained at the registered office of the LLP.

-

-

6

Registration under Shop and Establishment Act

The LLP shall get registered under the Shop and Establishment act of the state in which it is located.

-

In most cases, within 30 days of commencement of work.

7

Professional tax registration

The LLP shall obtain professional tax registration in the state in which it is located.

-

In most cases, within 30 days of the commencement of work.

8

Contribution of initial capital by the partners of the LLP

The partners shall contribute the amount of capital as per the LLP agreement.

-

-

9

Appointment of auditors

LLP shall appoint the auditors for audit of books of accounts and relevant records.

-

Within 30 days before the end of the financial year

10

Statement of Accounts and Solvency

The LLPs shall file a statement of accounts and solvency containing, among other information, the details of the income and expenditure as well as the statement of accounts.

Form 8

Within 30 days after the expiry of 6 months from the end of the financial year

11

Annual Return

The LLPs shall file their annual return containing, among other information, the details of the total obligations for the contribution by partners, penalties imposed, offences compounded etc.

Form 11

Within 60 days after the end of the financial year

12

GST Registration

In case the LLP crosses the threshold limit as specified under Section 22 (depending upon the business of the LLP) or satisfies any of the conditions specified for GST registration under Section 24 of the CGST Act, 2017, then the LLP shall make an application for obtaining GST registration. GST registration can also be obtained voluntarily by the LLP.

GST Reg-01

In case of voluntary registration: As per the requirement of LLP

 

In case of compulsory registration: Within 30 days after which the LLP becomes liable to get registered. 

13

Filing of Income Tax Returns

As per the Income Tax Act, 1961, the LLP shall file the income tax return for each year ending on the 31st of March irrespective of income or loss.

Form ITR-5

In case audit is not required: 31st July

 

In case audit is required: 31st October

 

In case LLP is required to furnish a report in Form 3CEB as per Section 92E: 30th November

14

KYC of the Designated Partners

Every person who holds DIN where the status of DIN is ‘Approved’ shall file e-Form DIR-3 KYC for each year.

DIR-3 KYC

30th September

15

Audit of accounts as per the LLP Act and Income Tax Act

The LLP shall get its accounts audited if the annual turnover during any financial year exceeds Rs. 40 lakhs or the contribution exceeds Rs. 25 lakhs.

 

Further, if the LLP satisfies any of the conditions prescribed under Section 44AB of the income tax act, then it shall get its accounts audited as per the Income Tax Act, 1961.

Form 3CA-3CD

30th September 

Non compliance of the above requirements can attract penal action against the LLP. Are you complying with the above requirements timely? If not, then contact your eAuditors for all your compliance needs after LLP registration.
 


Author : Dipen

Date     : 13-Jul-2022


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