The biggest advantage of an LLP structure is that its Partners’ liability is restricted to their share of investment in the LLP, as against unlimited liability in case of a Partnership firm. This means, in case of debt, the Partners’ assets cannot be attached.
|LLP Agreement||Mandatory to file with Registrar of Companies (RoC)||Within 30 days from incorporation|
|Books of Accounts||All LLP’s are required to maintain proper books of accountson double entry book keeping system.An LLP whose annual turnover exceeds Rs 40 lakhs or partner’s contribution exceed Rs 25 lakhs,shall be required to get its accounts audited by a Qualified Chartered Accountant.||-|
|Annual Returns||Mandatory to file Annual return in eform-11||Within 60 days from the end of FY|
|Statement of Accounts and Solvency||All LLP’s are mandatorily required to file Statements of Accounts and Solvency in eform-8||Within 30 days from expiry of 6 months from the closure of FY.|
|Income Tax Return||As per the Income Tax Act,1961,LLP’s with annual turnover of more than 60 lakhs must mandatorily get their accounts audited||