Detailed Understanding of LLP Compliances

Topics Covered –

What is LLP?

LLP stands for Limited Liability Partnerships. It observes a partnership structure whereby each partner’s liability is limited to the amount contributed into business. It has minimum two partners. Functioning of LLPs is majorly governed by Limited Liabilities Partnership Act, 2008.

What is Limited Liability Partnership Compliances?

As per Limited Liability Partnership (LLP), Act 2008, LLP is a combination of both company and partnership wherein all the partners are treated as the Directors contrary none are responsible for others’ actions. The LLP states the partnership in which the liabilities of each partner is limited to their agreed contribution in the LLP Agreement. It is a separate legal entity incorporated under the LLP Act, 2008.

Like Companies, LLPs are also obliged to follow certain Compliances prescribed by LLP Act without fail otherwise heavy penalties and fines shall be charged against LLP and its partners. Thus, LLPs have to regularly file prescribed compliances with Ministry of Corporate Affairs.

What are the major kinds of LLP Compliances?

LLP Compliances can be categorized into following types-

Post Incorporation Compliances

Click Here to Read in Detail About Post Incorporation LLP Compliances

Mandatory Annual Compliances

Click Here to Read in Detail About Mandatory Annual LLP Compliances

Event Based Compliances

Click Here to Read in Detail About Event Based LLP Compliances

Conclusion –

All the LLPs are legally required to file prescribed LLP Compliances with Ministry of Corporate Affairs under LLP Act, 2008 and rules made thereunder. All the compliances are backed with sanction so in case LLP or its partners fail to observe these compliances then they shall be punishable with penalties or additional fees. There are several LLP Compliances so it becomes difficult for LLPs and partners to comply such compliances on or before time so it is always suggested to seek professionals help for timely filings.