Every LLP after incorporation, has to cover the LLP Compliance. These following are the 7 tips which every LLP has to follow for the process of LLP compliance.
- LIMITED LIABILITY PARTNERSHIP AGREEMENT or LLP AGREEMENT means any written agreement between the partners of the Limited Liability Partnership.
- The LLP Agreement has to be filed with Ministry of Corporate Affairs (MCA) within 30 days of Incorporation of LIMITED LIABILITY PARTNERSHIP in LLP FORM 3.
- Non-filing of LLP Agreement can attract a penalty of Rs. 100 per day.
LLP PAN CARD
- PAN is a number which is issued to a person who earns income by Income Tax Dept. and is liable to pay taxes, whereas TAN is a number which is assigned to a person who is liable to deduct or collect tax at source.
- PAN is mandatory for every LLP as it is a separate entity whereas TAN is mandatory for every person who is doing Tax Deduction at Source (TDS) or Tax Collection at Source (TCS).
OPENING OF LLP BANK ACCOUNT
- LLP has to open a Bank Current Account for dealing in transaction in day to day business.
- Certificate of LLP Incorporation, LLP Agreement, PAN Card of LLP, KYC of Partners are the documents required for opening account of LLP.
- The partners can operate the LLP bank account jointly or individually.
(format of bank account resolution attached below)
DEPOSIT OF CONTRIBUTION BY PARTNERS IN LLP ACCOUNT
- Once the current account of LLP has been opened, the partners are required to contribute the amount (as prescribed under LLP Agreement)
- It is recommended to transfer the amount through personal account of partners by way of Cheque or Online transfer.
- The LLP has to affix their STAMP OR SEAL on official documents in day to day business transaction.
- LLP would also require to get LETTERHEAD of LLP Printed with Name, LLPIN, PAN Number of LLP printed on it.
- Other Stationery includes Invoice, Registers, Hoardings, Visiting Cards etc.
- GST Registration is mandatory for LLP whose turnover from supply of goods and services exceeds Rupees 20 lakhs (Rs. 10 lakhs in case of North eastern states)
- LLP whose turnover from supply of goods and services doesn’t exceed Rs. 20 lakhs is not required to register under GST mandatorily.
- LLP who supplygoods or services to different states, online service provider for different states has to mandatorily register under GST irrespective of turnover.
- Trademark Registration is required to protect brand or slogans or coined words that are unique to a person or entity.
- A trademark is essentially a characteristic of your brand. It could be your brand name, your brand’s logo, or even your brand’s slogan. For example, ‘Nike’, the ‘Swoosh’, or the slogan ‘Just Do It’.
- Trademark is not mandatory but important for LLP compliance for protecting the identity and goodwill of the business.
FORMAT OF BANK ACCOUNT OPENING RESOLUTION
ON THE LETTER HEAD OF LLP
“RESOLVED THAT a Current Account be opened and/or a Fixed Deposit be booked in the name of LLP and that the Bank be instructed to honour all cheques, bills of exchange, promissory notes or other orders which may be drawn by/accepted/made on behalf of the LLP and to act on any instructions so given relating to the account whether the same be overdrawn or not or relating to the transactions of the LLP and that Mr. ____________ and Mr. ____________, Designated partners of the LLP be and are hereby severally authorised to sign on behalf of the LLP cheques or any other instruments/documents drawn on or in relation to the said account and the signatures shall be sufficient authority and shall bind the LLP in all transactions between the Bank and the LLP”.
RESOLVED FURTHER that aforementioned Designated partners are authorised to operate the Account, and is instructed to allow operation in the Account, to renew, withdraw including pre-mature withdrawal or otherwise provide instructions related to fixed deposits.
“RESOLVED FURTHER THAT the aforesaid bank be and is hereby instructed to honour all bills accepted on behalf of the LLP and to accept and credit to the account of the LLP all money deposited with or owing by the bank or any account or accounts at any time or times kept or to be kept in the name of the LLP and the amount of all cheques, notes, bills other negotiable instruments order or receipts provided they are endorsed/ signed as above on behalf of the LLP and such signature(s) shall be sufficient authority to bind the LLP in all transactions between the bank and the LLP including those specifically referred to herein.”
RESOLVED FURTHER that the LLP accepts the terms and conditions applicable for the Account and/or fixed deposit(s) as may be contained in the application forms and/or displayed on (“Website”) or any other terms and condition as may be prescribed and notified by from time to time in connection with the Account and/or fixed deposit(s) and products and/or services offered in respect thereof
RESOLVED FURTHER, Mr. ____________ and Mr. ____________, Designated partners of the LLP be and are hereby authorised to complete the formalities for applying for and obtaining and collect Login id and Password(s) for all mode of operation.
“RESOLVED FURTHER THAT a certified true copy of the above resolution under the signatures of the Designated Partner/s be provided to the Bank for their records and action thereon.”