When can an LLP start transactions?


#1

When can an LLP start transactions?


#2

Anytime post you get registered.


#3

Hello Jani,

The LLP can start the business as soon as it comes into existence i.e. from the date of issuance of Certificate of Incorporation (COI). The transaction in the name of the LLP can be carried on from the date of incorporation itself.

However, the LLP will not be able to indulge into financial transactions till the opening of Bank Account as the transactions shall be channelled from bank account. For opening the bank account, the PAN card is must requirement. Here, the issuance of PAN may take 8 to 10 days from the application based on COI.

Further, there is a must requirement of entering into LLP Agreement and submitting the same to MCA within 30 days from incorporation, failing to which heavy penalty of Rs 100/day is levied by the Ministry.

Thanks,