In India, a type of business structure known as a Limited Liability Partnership (LLP) combines partnership freedom with the advantages of limited responsibility for its partners. The stages involved in LLP incorporation, tax filing requirements, required paperwork, tracking SRN after filing eForm, filing Form 4A and 2A and the purpose of Vakilsearch experts for LLP companies are all covered in detail. Anyone interested in creating an LLP in India or seeking to comprehend the legal requirements of managing an LLP, Vakilsearch is there to help you!
Limited Liability Partnership (LLP) is a popular form of business structure in India that offers the benefits of a partnership and the limited liability of a company. Here we will see a few questions that are frequently being asked.
What is List of the Steps for LLP Incorporation in India?
The steps involved in LLP incorporation in India are as follows:
- Get the designated partners a Digital Signature Certificate (DSC).
- Get the chosen partners’ Director Identification Numbers (DINs).
- Obtain the Registrar of Companies (ROC) approval for the name.
- Create the LLP agreement, then submit it to the ROC.
- Obtain the ROC’s certificate of incorporation.
What are the Steps in Filing Tax for LLP Companies?
Annual income tax returns and audit reports must be submitted by LLPs. The following are the steps needed to file taxes for LLP companies:
- Obtain an LLP’s Permanent Account Number (PAN).
- Create the financial statements and have a Chartered Accountant (CA) audit them.
- Before the deadline, submit the tax return and audit report to the Income Tax Department.
What are the Documents Required for Filing Tax for LLP Companies?
- The rules of the partnership between the partners are outlined in the LLP agreement, a legal document. It contains information about the partners’ identities, capital contributions, profit-sharing percentages, job descriptions, and other crucial characteristics of the partnership.
- The LLP company’s PAN card is necessary in order to submit tax returns to the Income Tax Department. The PAN card gives the LLP a special identification number.
- The balance sheet, profit and loss account, and cash flow statement are all parts of the LLP company’s financial statements. The financial transactions of the company during the fiscal year are described in detail in these statements.
- The audit report offers an unbiased evaluation of the LLP’s financial statements. LLPs with an annual turnover of more than ₹40 lakhs and a contribution of more than ₹25 lakhs must submit an audit report.
- There are other documents like certificates of TDS, tax collected and other necessary documents that the Income Tax department might require.
How to Track SRN After Filing eForm?
After filing the eForm, the Service Request Number (SRN) will be generated, which can be used to track the status of the application. The SRN can be tracked online on the Ministry of Corporate Affairs (MCA) website.
When Should I File Form 4A?
Form 4A should be filed within 30 days from the date of appointment of a designated partner or any changes in their details.
- Form 4A: If the information regarding the designated partners of an LLP changes, Form 4A must be filed with the RoC. The form contains information on the authorised partner, such as name, address, and other pertinent details.
- Deadline for Filing: LLPs in India must submit Form 4A within 30 days of the date a designated partner is appointed or any changes to their information are made. This means that the LLP must file Form 4A within 30 days of any change to the designated partner’s information, such as a change in address or name.
- If an LLP fails to submit Form 4A by the allotted 30-day deadline, there is a penalty.
- Penalty for Late Filing: If an LLP misses the deadline of 30 days to file Form 4A, the RoC may impose a fine on the LLP. The fine might be between ₹100 and ₹1000 each day, depending on how long the delay was.
When Should I File Form 2A?
Within 15 days from the date of incorporation of the LLP.
The Role of Vakilsearch for LLP Companies
Vakilsearch has the best LLP registration experts who can carry out all the legal procedures at your convenience. We provide LLP companies with a variety of services, such as incorporation, compliance, legal documents, and tax filing. LLP companies can receive assistance from Vakilsearch with all legal needs, from the incorporation stage to continuing compliance and tax filing.
Conclusion
Limited liability, tax advantages, and managerial flexibility are just a few of the advantages of the widely used LLP business structure in India. You can easily incorporate an LLP in India and assure compliance with tax filing requirements by following the steps outlined here. Vakilsearch can be used by LLP companies to simplify legal procedures and guarantee hassle-free compliance.
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