Next Steps After LLP Registration: Immediate Compliance Tasks
Quick Answer
> One line summary: Once your LLP is registered, you must complete specific compliance tasks within 30 days to avoid penalties and maintain good standing with the MCA.
What are the first compliance tasks I must complete after LLP registration?
Within 30 days of incorporation, you must file Form 3 (Information with regard to Limited Liability Partnership Agreement and changes, if any) with the Registrar of Companies (ROC). This form discloses the mutual rights and duties of partners, including profit-sharing ratios, capital contributions, and management roles. If no written LLP agreement exists, you must still file Form 3 stating that no agreement has been executed.
You also need to obtain a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) from the Income Tax Department. Apply for these immediately after receiving the Certificate of Incorporation, as they are required for opening bank accounts and filing tax returns. Additionally, register for Goods and Services Tax (GST) if your annual turnover exceeds the threshold of ₹20 lakh (₹10 lakh for special category states) or if you engage in inter-state supply.
How do I open a bank account for my LLP?
To open a current account, you need the Certificate of Incorporation, PAN card, LLP agreement (if filed), and identity/address proofs of all designated partners. Most banks require a board resolution authorising the account opening and specifying the authorised signatories. Submit these documents along with the application form to your chosen bank.
The account must be opened within 30 days of incorporation to avoid complications. Use this account exclusively for business transactions. Maintain separate records for partner capital contributions and business expenses, as mixing personal and business funds can lead to compliance issues under the Limited Liability Partnership Act, 2008.
What are the annual compliance requirements for an LLP?
Every LLP must file two annual returns with the MCA: Form 11 (Annual Return) and Form 8 (Statement of Account and Solvency). Form 11 is due by 30th May each year, disclosing partner details, contributions, and changes during the year. Form 8, containing audited financial statements and a solvency declaration, is due by 30th October.
Additionally, file income tax returns by 31st July (or 31st October if audit is required). LLPs with turnover exceeding ₹40 lakh or capital contribution exceeding ₹25 lakh must undergo a tax audit under Section 44AB of the Income Tax Act. Maintain proper books of accounts as per the double-entry system, even if audit is not mandatory.
What happens if I miss compliance deadlines?
Late filing of Form 11 or Form 8 attracts a penalty of ₹100 per day for each form, with no upper limit. For income tax returns, late fees under Section 234F apply: ₹5,000 if filed after the due date but before 31st December, and ₹10,000 thereafter. Continued non-compliance can lead to the ROC striking off the LLP's name from the register.
The MCA also imposes additional penalties for non-filing of Form 3 within 30 days. If you miss the deadline, file the form with a late fee of ₹100 per day. Repeated defaults may result in disqualification of designated partners from incorporating new entities. To avoid this, set calendar reminders for all due dates and consider using compliance management software.
How do I maintain partner records and statutory registers?
Maintain a Register of Partners containing names, addresses, contributions, and changes. Update it within 30 days of any change, such as admission, resignation, or alteration in profit-sharing ratio. Also keep minutes of partner meetings, copies of all filed forms, and correspondence with the ROC.
For designated partners, ensure they have valid Designated Partner Identification Numbers (DPIN) and Digital Signature Certificates (DSC). Renew DSCs before expiry, as expired certificates prevent online filing. If a designated partner resigns, file Form 4 within 30 days. Maintain these records at the registered office address and make them available for inspection by partners or the ROC upon request.
What You Should Do Next
Complete Form 3 filing and obtain PAN/TAN within 30 days of incorporation. Set up a compliance calendar for annual returns and tax filings. If you are unsure about any requirement, consult a qualified professional for guidance.
This page provides preliminary information. It is not legal advice. For your matter, consult a qualified professional.