Registering a Limited Liability Partnership is only the first step toward building a compliant business structure. After completing LLP company registration, designated partners must ensure that the LLP adheres to various statutory and regulatory requirements prescribed under the Limited Liability Partnership Act, 2008 and related rules. Post-registration compliance plays a crucial role in maintaining the legal status of the LLP and avoiding penalties. For a structured overview of mandatory filings, businesses may refer to a detailed Post Registration Compliance Checklist for an LLP to ensure nothing is overlooked.
Understanding Post-Registration Compliance for an LLP
Once the Certificate of Incorporation is issued by the Ministry of Corporate Affairs through the MCA portal, the LLP becomes a separate legal entity. However, incorporation also triggers ongoing compliance obligations. These include agreement filings, annual returns, financial disclosures, tax registrations, and event-based filings.
Non-compliance may lead to additional fees, penalties on designated partners, and even the striking off of the LLP in serious cases. Therefore, understanding these requirements immediately after LLP company registration is essential.
Filing of LLP Agreement
One of the first mandatory compliances after incorporation is filing the LLP Agreement in Form 3. The agreement defines:
- Rights and duties of partners
- Profit-sharing ratio
- Management structure
- Capital contribution
The LLP Agreement must be filed within 30 days from the date of incorporation. If it is not filed within the prescribed time, additional fees apply as per MCA rules. The agreement should be executed on appropriate stamp paper, the value of which depends on the state where the registered office is situated.
PAN, TAN and Bank Account Opening
After LLP company registration, the LLP must apply for a Permanent Account Number and Tax Deduction and Collection Account Number through the Income Tax Department. In most cases, PAN and TAN are allotted along with incorporation if applied during the registration process.
Opening a current bank account in the name of the LLP is necessary for operational and financial transactions. The bank generally requires:
- Certificate of Incorporation
- LLP Agreement
- PAN of the LLP
- Identity and address proof of designated partners
GST Registration and Other Tax Registrations
GST registration becomes mandatory if the LLP’s aggregate turnover exceeds the prescribed threshold limit under the Goods and Services Tax Act. It is also required in specific cases such as interstate supply of goods or services, e-commerce operations, or voluntary registration for input tax credit benefits.
Depending on the nature of the business, additional registrations may be required, such as:
- Professional Tax registration in applicable states
- Shops and Establishment registration
- Import Export Code for international trade
These registrations should be evaluated immediately after LLP company registration to ensure compliance from the start of operations.
Maintenance of Books of Accounts
Every LLP is required to maintain proper books of account relating to its affairs. The books must reflect a true and fair view of its financial position and be maintained at the registered office.
The books of account can be maintained on a cash or accrual basis and must follow the double-entry system of accounting. Records should include:
- Details of assets and liabilities
- Income and expenditure
- Statement of cost of goods purchased and sold
These records must be preserved for at least eight years.
Annual Filing Requirements
Irrespective of turnover or profit, every LLP must comply with annual filing obligations with the Registrar of Companies.
Filing of Form 11
Form 11, also known as the Annual Return, must be filed within 60 days from the closure of the financial year. It contains details of partners and changes, if any, during the year.
Filing of Form 8
Form 8, the Statement of Account and Solvency, must be filed within 30 days from the end of six months of the financial year. It includes:
- Statement of assets and liabilities
- Income and expenditure statement
- Declaration of solvency by designated partners
Even if the LLP has not carried out any business activities, these filings remain mandatory after LLP company registration.
Income Tax Return Filing
An LLP must file its income tax return every year, regardless of profit or loss. The due date depends on whether the accounts are subject to audit.
If the LLP’s turnover exceeds the threshold prescribed under the Income Tax Act, 1961, a tax audit becomes mandatory. In such cases, the return filing due date is extended as per applicable provisions.
Failure to file income tax returns on time may attract penalties and interest under the Income Tax Act.
Event-Based Compliances
Apart from annual filings, LLPs must comply with event-based filings whenever specific changes occur. These include:
- Change in partners or designated partners in Form 4
- Change in registered office in Form 15
- Increase in contribution
- Amendment to LLP Agreement
Such forms must be filed within the prescribed timelines mentioned under the LLP Rules to avoid additional fees.
DIR-3 KYC for Designated Partners
Designated partners who hold a Director Identification Number must complete annual KYC compliance through the DIR-3 KYC form if applicable. Non-filing may result in deactivation of the DIN, which can impact future filings.
Importance of Timely Compliance
Post-incorporation compliance ensures that the LLP maintains active status with the Registrar of Companies. Regular filings demonstrate transparency and regulatory adherence.
After completing LLP company registration, many businesses focus primarily on operations. However, consistent compliance management is equally important to avoid compounding penalties and legal complications. Maintaining a compliance calendar and reviewing statutory deadlines periodically helps in smooth functioning.
Conclusion
An LLP structure offers operational flexibility and limited liability protection, but it also comes with defined statutory responsibilities. From filing the LLP Agreement to annual returns, tax compliance, and event-based filings, each requirement must be carefully monitored.
Ensuring timely compliance after LLP company registration not only safeguards the LLP from penalties but also strengthens its credibility with regulators, financial institutions, and stakeholders. By understanding the legal framework and adhering to prescribed timelines through the MCA and Income Tax portals, LLPs in India can operate efficiently while remaining fully compliant.
