Do LLP needs to appoint Statutory Auditors & get the audit done every year?

LLP is a special vehicle introduced for SME size of activities. LLP compliances are less complicated and less burdensome. LLP is a great combination of corporate benefits, limited liability and ease of compliances. For income tax purpose LLP is treated at par with partnership firm. LLP act provides for turnover threshold for mandatory applicability of Statutory Audit. LLP not hitting that turnover threshold in a particular year is not required to engage Chartered Accountant for carrying out Statutory Audit.

However all LLP are required to file annual declaration of solvency to MCA. Non filing of such returns in time leads to fine of Rs. 100/- per day.

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