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9 Must Do Post Incorporation Compliance for your Compliance for your LLP

Introduction:

After incorporating your Limited Liability Partnership (LLP), it’s crucial to follow the post-incorporation compliance requirements to avoid any legal hassles and maintain the validity of your business. In this article, we will discuss 9 must-do post-incorporation compliance tasks for your LLP.

1. Appointing Designated Partners:

As per the Limited Liability Partnership Act, 2008, every LLP must have a minimum of two designated partners who are responsible for compliance with various legal provisions. Designated partners must be individuals, and at least one of them must be a resident of India.

2. Obtaining a Permanent Account Number (PAN) and a TAN:

The PAN is a unique 10-digit alphanumeric number issued by the Income Tax Department, which is mandatory for all LLPs. The TAN (Tax Deduction and Collection Account Number) is also required for deducting tax at source and depositing the same with the government.

3. Obtaining a Digital Signature Certificate (DSC):

A DSC is a secure digital key that is used to sign and authenticate electronic documents. Every LLP is required to obtain a DSC for filing documents with the Ministry of Corporate Affairs (MCA) electronically.

4. Filing of Annual Returns:

Every LLP must file an annual return with the MCA within 60 days of the closure of the financial year. The annual return must contain details of the LLP’s financial performance, the names of the partners, and changes, if any, in the partnership deed.

5. Filing of LLP Agreement:

The LLP Agreement is a crucial document that outlines the rights, duties, and obligations of the partners. Every LLP must file its LLP Agreement with the MCA within 30 days of its incorporation.

6. Maintaining Books of Accounts:

LLPs are required to maintain proper books of accounts and other relevant records, including cash book, ledgers, bills, vouchers, receipts, and invoices. These records must be maintained for a minimum period of eight financial years.

7. Payment of Annual Fees:

LLPs are required to pay an annual fee to the MCA, which is calculated based on the capital contribution of the partners. The fee must be paid annually within 30 days of the due date.

8. Obtaining a Goods and Services Tax (GST) Registration:

LLPs that are engaged in taxable supplies of goods and/or services are required to obtain a GST registration. The registration must be obtained within 30 days from the date of commencement of business.

9. Filing of Statutory Forms:

LLPs are required to file various statutory forms with the MCA, such as Form 8 (Statement of Accounts and Solvency), Form 11 (Annual Return), and Form 23AC/23ACA (Balance Sheet and Profit and Loss Account). These forms must be filed annually within the due date.

Conclusion:

In conclusion, compliance with post-incorporation requirements is crucial for the smooth functioning of your LLP. By following the above-mentioned 9 must-do post-incorporation compliance tasks, you can ensure the legality and validity of your business and avoid any legal hassles. It’s always advisable to seek the help of a professional if you are unsure of any compliance requirements.