BJS & Co., a registered LLP under LLP Act provides the legal and financial consultancy services through its 21 branches all over in India. All its partners are Practicing Company Secretaries. The turnover for the fin
CS Executive · Setting Up of Business, Industrial and Labour Laws · PYQS · December 2025
BJS & Co., a registered LLP under LLP Act provides the legal and financial consultancy services through its 21 branches all over in India. All its partners are Practicing Company Secretaries. The turnover for the financial year 2024-25 was ₹9.55 Crore. The LLP recently engaged its trainees for preparation of statutory forms, return and other documents. Rahul, one of the trainees, during the preparation of Annual Return of LLP, opines that as Annual Return can be signed by any designated partner and all partners are Practicing Company Secretary, hence there is no need to get certification from Company Secretary in Practice, who is not the member of LLP. In above situation, whether view of Rahul is correct in light of provisions of LLP Act ?
Answer & Explanation:
As per Rule 25(2) of the LLP Rules, 2009, read with Section 35 of the LLP Act, 2008, every LLP whose turnover exceeds ₹5 crore in a financial year is required to file its Annual Return (Form LLP-11) and such Annual Return must be certified by a Company Secretary in Practice. The term "Company Secretary in Practice" refers to an independent professional, not a partner of the LLP. Even if all partners are PCS, self-certification is not permitted for LLPs crossing the ₹5 crore threshold. The certification must be done by a PCS who is not a partner or designated partner in the LLP. Therefore, Rahul's view is incorrect. Despite all partners being Practicing Company Secretaries, the LLP must obtain external certification of its Annual Return from a Company Secretary in Practice who is not a member of the LLP, as the turnover exceeds ₹5 crore.
Topics: Setting Up of Business