Regulating Act Related
A Limited Liability Partnership (LLP) is subject to the LLP Act, 2008 and the rules framed thereunder. The LLP act prescribes filing of the LLP Agreement in Form No -3 within 30 days, duties of its designated partner about compliance with the law governing the LLP. In case of LLP form of business, there is greater flexibility in the hands of the partners as a body which can regulate the affairs of the LLP as per their mutual understanding by amending the LLP Agreement. There is much compliance under the law which needs to be complied with.
A business has to adhere to local laws of a specific state or a municipality. In India, the legislative powers are decentralised for some items to the state government, and some are retained in the union government, while there is another list of things on which both governments can make laws. That is the precise reason you need to check what are the state-specific or municipality specific licenses or registration required. For example, shops and establishment registration, Professional Tax Registration, Trade License; etc.
In general most of the business activities are open without any restriction, however for public safety, morality, or national interest, Indian government have put some reasonable limitation on certain types of business, which can be carried on only after taking prior permission from the competent authority. To illustrate a pharmacy can be established if drug license is obtained. A security service agency can operate only when PSARA License is granted. To carry business of dealing in seeds a permit from the controller is mandatory.
The foreign investment in a business in India can be received under approval route to the most of the section in case the type of business is a Limited Liability Partnership (LLP). The approval for FDI is filed with the concerned ministry of the central government. Hence every startup must be careful while receiving the funding from out of India as the same is subject to FEMA and Policies framed by RBI. One of the most common requirements is to file FDI Report for the capital investment to non-residents and an Annual return of foreign assets and liabilities to RBI.
Finally, the compliance which, most of you are aware "The tax compliance." GST is applicable on the supply of goods or services, and the taxpayer is expected to pay the GST net of inputs, before the 20th day of next month and then to file monthly, quarterly and annual GST returns as the case may be. The Income tax act casts a liability on you to deduct TDS while making payments to parties, Pay taxes in advance and file correct Income Tax Return after the end of the financial year.
After the close of the financial year on 31st March, every business entity needs to file a detailed report of its income, expenses, net profit and the tax paid thereon to Income Tax Department, commonly known as "Income Tax Return." before its due date. For a company, the due date of filing ITR is 30th September of next FY. Similarly, every LLP has to file its balance sheet and annual return with the ROC in the prescribed format and with attestation of a CS, CS or a CMA.