Limited Liability Partnership (LLP) is a type of business entity sharing features of a partnership firm and a company. LLPs are regulated by the Registrar of Companies, Ministry of Corporate Affairs. LLP is a legal entity, separate from its partners and it has perpetual succession. Some of the major benefits and powers enjoyed by LLPs are the following:
a) Separate legal entity.
b) Buying, Selling and Holding of movable, immovable, tangible or intangible assets.
c) Powers to sue and be sued.
d) Powers to open bank account.
e) Powers to employ persons.
f) Powers to enter into all types of legal contracts.
In line with the powers, all LLPs are required to maintain compliance and file certain statutory filing with the Government each year. In this article, we look at the major compliance requirements for an LLP.