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Nov 21
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Posted by:MyEfilings
Compliance guide for Limited Liability Partnership - LLP

Every Limited Liability Partnership - LLP has to follow certain compliance post its incorporation. Some of the compliance are irrespective of turnover and some of them are based on turnover and type of transactions you have e.g. TDS compliance.

In this article, we have explained the basic compliance needs of a Limited Liability Partnership - LLP after receiving Incorproation Certificate.

Entering into LLP Agreement

The first thing you have to do after incorporation of your LLP is to enter into LLP agreement. This initial LLP agreement duly executed mandatory required to be filed with Registrar of Companies within 30 days from the date of incorporation. Failure to file within due date will attract penalty of Rs. 100 per day. Many LLPs do not file the LLP Agreement on time and eventually endup paying heavy penalty. 

Introduction of contribution in LLP

After incorporation of your LLP you need to introduce initial contribution in the LLP. The contribution of the LLP has to be introduced by way of depositing money in Bank Account. Unless you open your Bank Account, you will not be able to introduce the contribution. Note that the contribution can be introduced by Account Payee Cheque or Bank Transfer only.

Compliance Related to Stationery and Name Board

LLP Letterheads, Visiting Cards, Name Board outside Registered Office etc should have the Name of the LLP, Registered Office Address, LLP’s LLPIN, Telephone Number, Email I’d and Website URL (if any).

Annual Compliance

Every LLP is liable to complete its Annual Filings in the forms LLP-11 (Annual Return of Limited Liability Partnership) and LLP-8 (Statement of Account & Solvency) specified by the Ministry of Corporate Affairs. Both form are mandatorily required to be filed within due dates.

Every LLP is required to file Annual Return in Form 11 with Respective ROC within 60 days from the closure of financial year i.e. the Annual Return has to be filed on or before 30th May every year.

Every LLP is required to file Statement of Accounts and Insolvency in Form 8 with Respective ROC within 30 days from the end of six months of close of financial year i.e. accounts of LLP has be filed on or before 30th October every year.

Delay in filing any form will attract penalty of Rs.100/- per day till the default continues.

Meetings of the LLP

There is no requirement of holding minimum no of meetings of LLP as compare to companies incorporated under the provisions of companies Act, 2013. But if there is any specific clause mentioned in Initial LLP Agreement related to meetings of LLP it should be adhere by the LLP.

Other points to remember

Any kind of changes in the initial LLP Agreement needs to be communicated to the Concerned ROC in form of Supplementary LLP Agreement duly executed within 30 days from the date of execution of Agreement.

Income Tax Compliance

It is desirable that you maintain the Books of Accounts of your LLP on regular basis. Basic data for all the compliance is derived from the Books of Accounts. With the data extracted from the Books of Accounts, payments towards TDS, VAT, Service Tax, Advance Tax etc. can be made accurately.

Here are the dates for payment of Advance Tax of the Company

Due Date

For corporate taxpayers

 

On or before 15th June

15% of advance tax

 

On or before 15th September

45% of advance tax

 

On or before 15th December

75% of advance tax

 

On or before 15th March

100% of advance tax

 
 

Further, payment towards TDS has to be made within 7 days from the end of the month in which the amount is paid or credited (whichever is earlier). However for the month of March, the date of payment of TDS is 30th April. Quarterly TDS returns have to be filed on 31st July, 31st October, 31st January and 31st May for the quarters ended on 30th June, 30th September, 31st December and 31st March respectively. TDS Certificates should be issued within 15 days of filing of TDS Returns.

We have tried to share basic knowledge to run a Limited Liability Partnership. You can always come to us for any consultation on the above matters. We will be happy to help you. 



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