10 LLP compliance Every Business needs to followAbhishek Kumar / 2020-02-04 04:53:04
Here are the top 10 compliance every business needs to follow:-
- Bank Account: To ensure smooth transfers you have to open a new bank account. To open a banking account, a PAN card application is enough. One is suggested to open an account in at least 2 highly networked banks to ensure that the business remains untouched even if one of the banks is facing problems.
- Designated partner identification number: Designated Partner Identification Number shall be obtained in the LLP by the Designated Partner or by all individuals who want to be and/or will be Designated Partner. All the people who requires to become a designated partner in LLP are allocated a unique DPIN
- Digital signature certificate: A Digital Signature Certificate is like a digitised version of a physical or paper certificate for a particular purpose as proof of an individual's identity. Digitally introduced to prove one's identity or digitally sign the papers. A designated partner must apply for DSC from a certifying authority (CA) before registering an LLP. It is necessary to sign the e-forms required to register the LLP. There are two DSC forms provided by the CAs, the DSC Class 2 and the DSC Class 3. For signing the e-forms for registration, either can be accessed.
- GST registration: Any LLP or company needs to get registered with GST when the existing supply of goods / services reaches to a turnover of 40 lakh rupees. The limit in 20 lakh rupees in North east states of India. Most of the indirect taxes are now replaced by GST, such as VAT, CST, Import-Export Customs, Excise Duty, Duty, Luxury Tax and Entertainment Tax. As a result, when the business crosses the threshold, it becomes compulsory for a company to file GST returns. However if the business wants to export goods and services to another country, irrespective of the threshold, GST will apply. Having GST Registration Online is also mandatory for suppliers of input services and e-commerce operators previously exempted from taxes.
- LLP incorporation: The LLP's Designated Partners will be required to register their company with the RoC (Registrar of Company) after receiving the DSC, DPIN and reserving the LLP name with the RoC. All information, such as the aggregate number of Authorized Members, the contribution of each partner, the overall contribution, etc., must be filled in correctly during the registration of the LLP.
- Filing of LLP Agreement: The LLP Contract generally includes details of the partner's rights and obligations. The LLP would apply the contact within 30 days of implementation. Failure to comply would result to a small penalty of 100 rupees per day prior to submission of the form.
- Filling of annual returns: Reports on annual compliance, financial performance and governance are submitted to ROC(Registrar of Companies). The licensed LLP office is under the control of ROC. This is performed annually on the 30th of May. The financial statements including the balance sheets, loss accounts and profits shall be filed by 30 October. The fine for non-compliance for delay in filing is 00 rupees per day.
- Trademark Registration: Trademark Registration is required to protect a trademark or emblem that is exclusive to an organization or person. This makes sure that a brand's goods and services are unique and differentiable. This helps to create trust and a positive picture of the company organization. Post-registration, the "®" symbol is used indicating that the trademark is licensed. Customers offer this tag more priority to brands. The rights offered by the registration of a trademark shall prohibit the usage of the same by other persons. Trademarks can be rented in return for royalties.
- Accounting processes: It is important to follow the financial processes right from the start. It includes a collection of invoices, wage bills, and cash flow management. There, automatic cash flow or account management systems that can be used on computers or tablets can help save time and money.
- Income tax returns: After the end of each financial year, each LLP includes the filing of income tax returns. The same shall be issued on or before 31 July for those LLPs whose reports are not audited under any regulation and 30 September for those LLPs whose reports are audited under any legislation. Failure to meet the requirements will led to severe penalties on a regular basis as per the law.