LLP Statutory Audit
A LLP Statutory Audit of a Limited Liability Partnership (LLP) is a mandatory audit of the financial records of the LLP to ensure compliance with legal and regulatory requirements. It involves an independent examination of the financial statements and records by a qualified auditor to provide an opinion on whether they present a true and fair view of the LLP financial position.
Free Consultation by Expert
Who is eligible for LLP statutory audit registartion?
In India, every Limited Liability Partnership (LLP) is required to get its accounts audited by a practicing Chartered Accountant if the LLP meets any of the following criteria:
- If the annual turnover of the LLP exceeds Rs. 40 lakh.
- If the capital contribution of the LLP partners exceeds Rs. 25 lakh.
- If the LLP is involved in any business for which the government has prescribed mandatory audit requirements.
What is the process of appointment of statutory auditor?
Here’s the process for appointing a statutory auditor in an LLP (Limited Liability Partnership) LLP Statutory Audit in India:
Appointing Body:
- The first auditors of an LLP can be appointed by the designated partners, as per Rule 24(11) of the LLP Statutory Audit Rules, 2008.
- The LLP agreement can also specify a provision authorizing the designated partners for such appointments.
- For subsequent appointments, the designated partners usually hold the authority. However, partners’ rights can supersede this depending on the specific LLP agreement.
There’s no requirement to hold a general meeting for appointing an auditor in an LLP, unlike companies.
Key Steps:
Selection of Auditor: The designated partners or partners (as per the agreement) select a qualified Chartered Accountant eligible for appointment as per the Institute of Chartered Accountants of India (ICAI) guidelines.
Auditor’s Consent: Obtain written consent from the chosen auditor confirming their willingness to accept the appointment.
Appointment Resolution: Pass a resolution signed by the designated partners, formally appointing the auditor. The resolution should specify the terms and remuneration of the appointment. No specific e-form filing is required for this resolution.
Intimation to MCA (Optional): While not mandatory, it’s advisable to intimate the MCA (Ministry of Corporate Affairs) about the auditor’s appointment within a reasonable time frame.
Additional Points:
- There’s no specific time limit** prescribed for appointing the first auditors or subsequent ones.
- The appointed auditor holds office until a new auditor is appointed** by following the same process.
- The LLP Act or Rules don’t specify a period** for which an auditor can be appointed. Unlike companies, there’s no requirement to rotate auditors every few years.
What are the benefits we get from LLP statutory audit?
Sure! Conducting a statutory audit for an LLP Statutory Audit in India has several benefits:
- Compliance: It ensures compliance with the legal requirements and regulations set by the government and the Registrar of Companies.
- Accuracy: The audit helps in verifying the accuracy and reliability of the financial statements of the LLP, giving stakeholders confidence in the financial health of the business.
- Transparency: It promotes transparency in the financial operations of the LLP, providing clarity to partners, investors, and other stakeholders.
- Identifying Errors and Fraud: The audit process can help in identifying errors, discrepancies, or potential fraud in the financial records of the LLP.
- Improving Financial Management: The audit findings can provide valuable insights that can help the LLP in improving its financial management practices.
- Enhancing Credibility: A LLP Statutory Audit enhances the credibility and reputation of the LLP in the eyes of lenders, investors, and other external parties.
What we can offer ?
Accounting and Taxation Services
- Bookkeeping: Maintain accurate financial records and bookkeeping services.
- Financial Statements: Preparation of balance sheets, profit and loss statements, and cash flow statements.
- Tax Planning and Compliance: Manage tax filings, including income tax returns and GST (Goods and Services Tax) compliance.
- Audit Services: Conduct audits as per statutory requirements.
Legal and Regulatory Services
- Legal Advice: Provide legal guidance on contracts, agreements, and compliance issues.
- Intellectual Property (IP) Services: Assist in trademark registration, copyright protection, and IP strategy.
- Labour Law Compliance: Ensure compliance with employment laws, contracts, and HR policies.
IT and Technology Services
- IT Support: Provide technical support, cybersecurity solutions, and software implementation.
- Website Development: Design and maintain websites, e-commerce platforms, and digital presence.
Marketing and Branding Services
- Digital Marketing: Develop online marketing strategies, SEO (Search Engine Optimization), social media marketing, and content creation.
- Branding: Design logos, brand identity, and marketing collateral.
- Advertising: Plan and execute advertising campaigns and promotions.
Administrative and Support Services
- Virtual Assistant Services: Provide administrative support, scheduling, and customer service.
- Document Management: Organize and manage important business documents and records.
Benefits if you get services by the Blacktie Legal Services India LLP
- Peace of Mind: Knowing the process is handled by experienced professionals allows you to focus on your business planning and strategy.
- Increased Efficiency: The company’s expertise can save you time and effort in navigating the legalities.
- Reduced Risk of Errors: Their guidance can help ensure your application is complete and compliant, minimizing delays.
- Successful Registration: Their knowledge of the process can increase your chances of obtaining successful registration for your LLP.
- Navigate Complexities: Companies stay updated on the latest LLP Act regulations and ensure your application adheres to all legal requirements.
- Minimize Errors: Their experience can help avoid mistakes in the application or missing documents, potentially leading to faster approvals and fewer delays.