After incorporation compliances

Once an LLP has been registered it is required to comply with certain requirements, as follows: -

• It is compulsory for the LLP to execute and file the LLP Agreement as per Section 2(O) & (q), 22 and 23 of the LLP Act, 2008 within 30 days of the formation with the Ministry of Corporate Affairs. The Agreement typically mentions the rights and duties of the partners and the LLP.
• If in case an Agreement is not filed, the mutual rights and liabilities shall be as per Schedule I to the Act. Hence if an LLP wishes to exclude provisions or requirements of Schedule I to the Act, it needs to have an LLP Agreement executed and filed specifically excluding the applicability of any or all provisions of Schedule I.

Penalty:

• Other than the above, the LLP is required to apply for the LLP PAN and TAN
• Open LLP Bank Account
• Purchase the LLP seal and have LLP stationery prepared post incorporation.

Filing of the Statement of Account & Solvency:

• Fill up in the prescribed format as per LLP Form 8
• It is compulsory for all LLPs to maintain the Book of Accounts as per Double Entry method.  Form 8 contains a declaration on the solvency state of the LLP by its designated partners as well as gives details of the statement of assets and liabilities and statement of income and expenditure of the LLP.
• The form 8 needs to be signed by the partners and requires to be certified by a practicing-chartered accountant, company secretary or cost accountant.
• This is required to be filed within 30 days from the end of six months of the close of the financial year that is by 30th October of each financial year.
• LLPs with a turnover of more than Rs. 40 lakh or the ones with the contribution of more than Rs. 25 lakhs need to get their books of accounts audited by an active chartered accountant.

Annual compliances

• The return needs to be filed with the Registrar of Companies.
• Fill up using the prescribed format - LLP Form 11
• This is required to be filed within 60 days from the close of the financial year

Filing of Income Tax Return

• As per the Income Tax Act, all LLPs are required to close their financial year by the 31st of March and accordingly file the returns with the IT Department.
• LLPs are required to file their income tax return using Form ITR 5 – it can be downloaded or filed online using the digital signature of the designated partners.
• LLPs with an annual turnover of more than Rs. 60 lakhs need to get their books audited and file their return latest by 30th September every year.
• LLPs whose accounts are not required to be audited need to file their returns latest by 31st July each year.
• LLPs that have got engaged in international transactions or have undertaken specific domestic transactions have to file Form 3CEB. The form needs to be certified by a qualified chartered accountant and is to be submitted by 30th November of each year.