Section 34 of the LLP Act, 2008 — books, accounts & audit
Section 34 of the LLP Act 2008 deals with maintenance of books of account, other records and audit. According to this section, the following requirements are to be complied with:
- Every LLP shall maintain such proper books of account in accordance with Rule 24 of LLP Rules, 2009, relating to its affairs for each year of its existence, on cash basis or accrual basis and according to the double-entry system of accounting, and shall maintain the same at its registered office for such period.
- Every LLP shall prepare and file with the Registrar the Statement of Account and Solvency in LLP Form 8 within 30 days from the end of six months of the financial year — i.e. by 30th October each year (within 30 days from 30th September) for LLPs with financial year ending on 31st March. Such statement shall be signed by the designated partners of the limited liability partnership.
- According to Section 34(4) of the LLP Act, 2008, the accounts of every LLP shall be audited in accordance with Rule 24 of LLP Rules, 2009. Any LLP whose turnover exceeds forty lakh rupees in any financial year, or whose contribution exceeds twenty-five lakh rupees, is required to get its accounts audited.
When the Designated Partners must appoint the Auditor
The Designated Partners responsible for the compliances of the LLP are required to appoint the Auditor:
- (a) First financial year: within 30 days of incorporation of the LLP (as required under Rule 24(4) of the LLP Rules, 2009).
- (b) Subsequent financial years: before the end of each financial year (other than the first financial year).
The partners may appoint an auditor or auditors where the designated partners have the power to appoint and have failed to appoint.
Section 35 — LLP Form 11
Further, Section 35 of the LLP Act 2008 requires that every LLP shall file an annual return in LLP Form 11, duly authenticated with the Registrar, within sixty days of closure of its financial year, in such form and manner and accompanied by such fee as may be prescribed.
Our team, with qualified Chartered Accountants, will assist the LLP in complying with LLP audit requirements and filing of LLP Form 8 and LLP Form 11 with the Registrar. We also provide Income Tax Return filing and other compliance services to LLPs.
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