10 Steps immediately after Incorporation of LLP
Obtaining the Certificate of Registration for your Limited Liability Partnership (LLP) is an exciting moment in your business start-up journey. You would possibly have gone through the process of arranging needful documents as per prescribed standards of Ministry of Corporate Affairs and also insisted by the professionals who have assisted with certifications for your LLP Registration. Now you recognize the selecting a name for your LLP is more difficult than naming your baby.
Your LLP is born as an artificial legal person with certain inherent features, rights, powers and liabilities. Partners are the owners of the LLP and therefore the Partners/Designated Partners are the brains and organs of a registered LLP. In other words you the Partners and Designated Partners are the oldsters and Guardians of your LLP . As a Parent and Guardian of your LLP, you’re responsible for the actions and inactions of a registered LLP and are personally responsible to answer the regulatory authorities for any non-compliance by a LLP.
Obtaining the Certificate of Incorporation is merely a starting point for a series of compliances a LLP has to follow under various legislations in India from time to time.
Immediate Steps After LLP Incorporation by LLP registration in Chennai
The following are the 10 steps immediately done by the LLP after registration by LLP registration in Chennai.
WITH IN 30 DAYS
1.LLP Agreement
After incorporation of the LLP by LLP registration in Chennai, the Partners of a LLP are required to execute an LLP Agreement and a copy has to be filed with the Registrar or Companies in LLP Form 3 within 30 days of incorporation of LLP. LLP Agreement should have stamped as per Stamp Act of respective state where the LLP had registration.
The delay in filing LLP agreement shall attract penalty of some amount per day till the date of fling Form 3 with ROC.
2. Application for Permanent Account Number (PAN)
Every LLP that is registered by LLP registration in Chennai has got to obtain a Permanent Account Number (PAN) from Income tax department, Government of India. PAN is a number for every tax payer under Income Tax Act. For obtaining a PAN, the LLP has got to make an application with a copy of its Certificate of Incorporation.
3. Application for tax deduction and Collection Account Number (TAN)
Also, Every LLP has got to obtain a Tax Deduction and Collection Account Number (TAN) from Income tax department, Government of India. Certain category of payments requires tax TDS and the tax so deducted must given remittance to the government. To enable the TDS remittance, TAN is necessary.
4. Opening bank account in LLP Name for LLP registration in Bangalore
After incorporation of the LLP by LLP registration in Chennai, it’s necessary to open a Current Account in the name of the LLP with any Bank in India. All the transactions within the name of the LLP should be transacted through the LLP Bank Account only.
The following are the documents and details necessary for opening an accounting with a bank:
a) Certificate of Incorporation of the LLP
b) Copies of LLP Incorporation documents – Form FiLLiP and Form 3 Filed with ROC and LLP Agreement.
c) Permanent Account Number (PAN) of the LLP
d) Resolution by partners of Opening and operation of bank account
e) KYC details for Designated Partners and Partners of the LLP
f) Cheque for initial deposit of amount to Open bank account (This deposit can be considered as the capital infusion by the partners)
Also, the documents and initial deposit vary from bank to Bank. There are banks offering ‘Zero’ balance Accounts which also subject to conditions.
5. Books and Accounts of LLP
Every business is necessary to under tax Compliances such as Tax Deduction at Source (TDS) and Advance Tax Payments from time to time.
Every LLP that is registered by LLP registration in Bangalore has got to prepare and keep the books of account in double entry system of accounting on accrual basis. The LLP has got to maintain the Books of Accounts of all receipts payments and to comply legal requirements under Companies Act and other various laws. The books of accounts and financial statements shall provide a true and fair view of the state of the affairs of the LLP , including its branch office or offices.
Bookkeeping and Accounting starts with recording of accounting transactions like Receipts and Payments. It’s advisable to maintain physical records of each transactions through Payment Voucher & Receipt Voucher.
To record a transaction, use the voucher as a canopy note for every payment and receipt transactions with relevant supporting documents such as Supplier Invoices / Receipts with Transaction details. These vouchers and supporting documents are the first reference for each transactions.
The books of account should be kept at its registered office or such other place in India because the Board of Designated Partners may decide from to time. The books of account are often maintained in electronic mode subject to conditions under Companies Act.
6. Shop and Establishment Registration
All Business Establishments are necessary to get Shop and Establishment Registration under every State Shop and Establishment Act and Rules within 30 days of registration.
This is a mandatory registration for all the business and establishments. The LLP that is registered by LLP registration in Bangalore has got to obtain the Shop and Establishment Registration in every state wherever they have offices and establishments.
7. Professional Tax Registration – Employer & Employee
Every LLP is required to get Professional Tax – Employer Registration (Enrolment Certificate) within 30 days of incorporation. This again may be a state specific labour registration mandatory for all registered business whether you have any employees or not. This registration is subject to renewal per annum after payment of prescribed fee. Delay in obtaining the registration will get penalty to business on yearly basis.
Also, every LLP that is registered by LLP registration in Bangalore who employs people with quite the specified limit of salary (this limit varies from State to State) has to obtain Professional Tax – Employee Registration (Registration Certificate), once they start employing people. For this purpose, the Partners / Designated Partners shall have the consideration as employees; if they’re drawing salary beyond the specified limits. Also, the employer deducts the Professional Tax from the salary of employee. This must have the payment to the State Govt. on monthly basis.
WITH IN 60 DAYS
8. Initial Capital by Subscribers to Memorandum
The initial partners of LLP have got to bring the amount of capital contribution as stated in the subscription documents and LLP Agreement at the time of LLP registration within 60 days of incorporation by LLP registration in Chennai.
Though there’s no explicit conditions in LLP Act as to this time limit for bringing the capital. It’s advisable to bring the subscribed capital with 60 days of incorporation.
9. Appointment of Auditors
Every LLP whose capital contribution exceeds certain limit prescribed (greater than 25 lakhs) or annual turnover exceeds prescribed amount (greater than 40 lakhs) has got to get the accounts audited by a Chartered Accountant in Practice. There’s no mandatory audit requirement for other LLP’s.
WITH IN 180 DAYS
10. Goods and Services Tax (GST) Registration
Every business with annual turnover exceeds Rs. 40 lakhs (Service providers 20 lakhs) is necessary to GST Registration GST Act and Rules.
It is not necessary to obtain GST immediately after incorporation of the LLP by LLP registration in Bangalore.
In case the LLP has to produce its GSTIN to any third parties or authorities for its business, the LLP may have got to obtain the GST Registration immediately after registration of LLP.
11. Trademark Registration
Registering a corporation or LLP with a name does not provide complete protection to the name or brand name. The protection of Company /LLP name under the businesses Act / LLP Act has limit to the extent that another Company or LLP will not have registration with the same or a closely-resembling name.
Ultimate protection for a corporation name has security only by way of a Trademark.
If a trademark has employment for goods and services under different classes, separate applications have the filing under each class to urge protection of trademark for the respective goods and services.
Many more
Also, there are more regulatory compliance requirements a LLP has to follow under LLP Act and other various laws as may be applicable to the nature of business of LLP.
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