Starting a Company India: Things You Have to Do Post Registration for LLP
Have you checked the post compliance list to start your business as LLP? If not, then you must think about post-registration for LLP to receive the certificate of incorporation.
Deciding on a business entity is the first step towards entrepreneurship. If you are starting a firm in partnership, you can choose a Limited Liability Partnership as an entity. Obtaining the registration certification for LLP serves as an exhilarating moment. Your Limited Liability Partnership (LLP) is like an artificial legal person with certain rights, features, powers, and some liabilities.
Being a designated partner, your responsibility does not end with starting a business. You need to focus on the actions and inactions of a registered LLP, answer the regulatory authorities, and many more. Take a look at the complete compliance checklist to acknowledge the various terms and rules.
File LLP Agreement
The partners of LLP have to accomplish an LLP Agreement, and a copy has to be filed with the Registrar within 30 days of incorporation. The delay in filing the LLP agreement can cost you a penalty of INR 100 per day until filing the form.
Application for PAN and TAN
Every LLP has to obtain PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) from the Income Tax Department. However, you cannot apply for PAN and TAN in the registration application. You can only get them after receiving the certificate of incorporation.
To accomplish the two steps mentioned above, you need to do the registration. Hence, post-registration for the LLP checklist starts from here.
Open Bank Account in LLP Name
It is essential to open a bank account in the name of the LLP after incorporating a Limited Liability Partnership. All the transactions in the LLP name should be carried out through the LLP bank account only. Depending on the bank policy, you need to submit crucial documents, namely;
- LLP Agreement
- Certificate of Incorporation
- PAN Card
- Capital Contribution
Every LLP partner must agree on a capital contribution. LLP partners must also deposit the capital in an agreed manner. A designated partner can contribute cash or any other suitable mode. The contribution is disclosed further in accounts and detailed in the annual filings.
Books and Accounts
The LLP has to maintain the transaction records and accounts of all receipt payments. Additionally, it has to fulfill the legal requirements under various laws. Unlike other companies, there is no set schedule for accounts, and hence you can uphold accounts on a simple cash basis. Apart from it, partners have to maintain books at the registered office up to a given time.
Appointment of Auditors
The audit is valid if the capital contribution of LLP exceeds INR 20 lakhs or annual turnover exceeds INR 40 lakhs. The auditor chosen must be an active Chartered Accountant.
Other Registration Requirements
Many business startups think that they don’t require any other registrations once they obtain a certificate of incorporation for LLP. However, you must know here that LLP is the only setup, and you may need different registrations and licenses for your business, such as:
- Shop and Establishment Registration: It is a state explicit mandatory registration for all the businesses and establishments.
- Professional Tax Registration: The applicability for this registration is based on state laws.
- Goods and Service Tax (GST) Registration: Every business with total turnover exceeds INR 20 lakhs is required to register under the GST Act and Rules. The business startups have a choice to register under GST voluntarily instead of compulsory registration.
- Activity-Based Registration: Depending on your business activity, you need to get registered with suitable authority.
Three major laws help business startups to protect their IPR:
- Trademark: It guards a symbol, logo, taglines, and so on.
- Patents: Business startups can protect their invention under patents.
- Copyrights: You can protect your artistic or creative work under copyright.
Who Can Help Me With the LLP Registration Process in India?
Do you think that LLP registration suitable for your business? Alternatively, are you looking for a second opinion on your business registration process? If yes, then you must consult professional experts of the 3E Accounting Firm. Being the leading CSR company in India, our main objective is to provide top-notch services and assistance to register limited liability partnership effortlessly.