Post incorporation compliances of LLP by Swaritadvisors
Assured completion of Compliances of LLP and procedural matters along with post incorporation of an LLP ensures the smooth operation of a Limited Liability Partnership. The overall requirements of compliances of LLP are less complicated as compared to the post incorporation compliances of the companies. Although, an LLP is also a separate artificial judicial person, it requires time to time completion of compliances of LLP to avoid any kind of penalties.
In this article, we will make you aware of some major post incorporation compliances of LLP.
· Letterhead: LLP stationary including letterhead, official documents, invoice, etc are prepared with the name of the LLP, along with the registered office of the LLP.
· LLP Seal: LLP seal is required in various purposes like to open a bank account of the company and to apply for the company’s PAN. Therefore, two rubber seals with the name and designation of the corresponding LLP must be purchased on the incorporation of an LLP company.
· Book of Accounts: In an LLP, it becomes very important to maintain proper book of accounts on accrual or cash basis. Book of accounts can be maintained manually or electronically through various accounting softwares like Quickbooks or Tally.
An LLP agreement contains the information regarding the rights and duties of all the partners of the Limited liability Partnership company. It is mandatory to file the LLP agreement within the 30 days of the incorporation of LLP to the Ministry Of Corporate Affairs (MCA). In case a company fails to submit the LLP agreement with the 30 days of incorporation, they have to pay heavy penalties with no ceiling on the maximum fine. So, one must ensure that the agreement is filed within the due-date.
PAN card for an LLP can be applied online with the Form 49A. Once the application has been filed online, the PAN acknowledgement needs to be sealed and signed by the designated partner of limited partnership firm. Then the application is couriered to the National Securities Depository Limited (NSDL) office. After that the respective company receives its PAN card with 10–20 working days to the address of the registered office.
Appointing an Auditor:
Unless the annual turnover of the business exceeds over Rs. 40 Lakhs or the capital contribution exceeds from the limit of Rs. 25 Lakhs, there is no need to appoint an auditor to audit the account books.
Opening a Bank Account:
It is not a hard job to open a bank account for LLP Firm, as it is considered as a corporate entity. Following list of documents are required to open an LLP Bank Account:
1. Copy of the PAN allotment letter
2. A copy of agreement
3. A copy of document of incorporation
4. A copy of DPIN of all the designated partners.
5. A copy of certificate of registration issued by the ROC.
6. A copy of ROC issued LLP-IN.
7. Resolution copy to open a bank account.
8. A list of authorized persons along with their specimen signatures.
Note: all these documents should be signed and sealed by the designated partner of LLP.
Even after the registration of LLP, there are various things that need to be kept into mind and fulfilled timely to avoid all the legal penalties. To get more information regarding all these post incorporation compliances of LLP contact Swarit advisors at email@example.com