An LLP shall be under obligation to maintain annual accounts reflecting true and fair view of its state of affairs. The Statement of Account & Solvency in Form-8, essentially signed by the designated partners, is to be filed within 30days from the six months from the closure of the respective financial year i.e. by 30th October. If there is any delay filing of Form 8 then the penalty would be Rs. 100/- after the above specified period.

• Every LLP in India, whose annual turnover exceeds the magnitude of Rs. 40Lakhs or the total contribution of its partners gets above the limit of Rs. 25Lakhs, is mandatorily need to get its accounts audited every financial year, strictly in accordance with the rules and provisions provided in the LLP Rules of 2009.
• Provided also that where the partners of such LLP do not decide for audit of the accounts of the LLP, such LLP shall include in the Statement of Account and Solvency a statement by the partners to the effect that the partners acknowledge their responsibilities for complying with the requirements of the Act and the Rules with respect to preparation of books of account and a certificate in the form specified in Form 8.

Every LLP would be required to file Annual Return with ROC. A duly authenticated Annual Return in e- Form-11, is to be filed with the Registrar, together with the prescribed fee, within a period of 60 days from the closure of every financial year.

Minimum two persons or partners are required to form a LLP and can have a maximum of any number of Partners.

The Designated partners must be a natural person & have attained 18 years of age. Foreign nationals, Foreign companies & LLP can incorporate a LLP in India subject to at least one designated partner is resident in India.

For the purpose of taxation, LLPs are treated like Partnership Firms. The Minimum Alternate Tax and DDT are not applied to LLPs in India. A private limited or public limited company, is subject to DDT @ 15% (plus Surcharge and Education Cess). The taxes applicable to an LLP in India, are the following:

• Income Tax: 30%. In case, when the income of the LLP exceeds INR One Crore in any financial year, then Surcharge @ 10% will be applied.
• o Education Cess: 3%.

The recent FDI norms and policies of the Government of India, especially those which were announced in November 2015, allow NRIs and Foreign Nationals/Investors for making FDI up to 100% in Indian LLPs through Automatic Route into some specified economic sectors. Some provisions have also been made effective for easy, fast, and smooth set-up and management of LLPs by NRIs and Foreign Investors, particularly when the annual sales turnover is less than INR 40 Lac, or when the contributed capital is less than INR 25 Lac.