Which one of the following is not valid as per the Limited Liability Partnership Act 2008?

Correct option is D

According to the Limited Liability Partnership Act 2008, an LLP is not considered a separate legal entity independent of its partners. Unlike a company, an LLP is a hybrid business structure where the partners have limited liability, but the LLP itself is not treated as a separate legal entity. This means that the partners of an LLP are personally liable for the actions and debts of the LLP.

According to the Limited Liability Partnership (LLP) Act, 2008, the statement in option D is not a valid feature of an LLP.

Additional Knowledge

A. LLP shall maintain its books of accounts on double entry system and one cash or accrual basis: This statement is valid. The Act and associated rules require LLPs to maintain books of accounts using the double-entry system, and they have the flexibility to choose either the cash basis or the accrual basis of accounting.
B. LLP shall prepare a Statement of Account and Solvency for each financial year: This is a mandatory requirement under Section 34 of the LLP Act, 2008. The statement must be filed annually with the Registrar.
C. Every LLP shall file an annual return with the Registrar of Companies: This is required under Section 35 of the LLP Act, 2008, ensuring compliance and transparency.