Limited Liability Partnership is kind of business registration which is suitable for partnership business. It is preferred by the partners who want to enter the corporate structure.
Benefits of LLP registration
- Unique legal entity
- Limited liability protection
- Power to own assets
- Low annual compliance of LLP
- Preference in Bank Loans
Annual Compliance of LLP
A LLP has less compliances which it is required to fulfill in order to maintain its legal status.
Here are some important annual compliance of LLP
- Proper Account Books : A LLP entity is required to maintain proper account books related to the expenditure and profit in the financial year.
- Annual Return Filing : A LLP is required to apply for annual return filing to the IT department to show the profit and loss incurred in the financial year.
- Document Maintenance: All registered LLP are required to maintain the proper documents like payment proofs, account statement, annual return filing slips and such; to show legal proof of the payments incurred if required.
These are the required compliances but a LLP may need more compliance as per the business turnover and growth. Thus, you must consult a leading business consultant for management of annual compliance of LLP.