Chartered Accountant · ICAI M.No. 153926 · FRN 136869W · Reviewed on 12 October 2026
Companies: no escape route
Every company registered under the Companies Act, 2013 must appoint an auditor — the first one within 30 days of incorporation (section 139(6), reported in ADT-1) — and lay audited accounts at each AGM. “We haven’t started business” or “we made a loss” changes nothing. The only true exits are striking the company off or converting it to another form.
LLPs: the 40/25 test
Rule 24(8) of the LLP Rules, 2009 requires an LLP’s accounts to be audited only if turnover exceeds ₹40 lakh or partner contribution exceeds ₹25 lakh in the financial year. Below both, the designated partners self-certify in Form 8 — one of the LLP form’s genuine running-cost advantages.
Firms, proprietors, trusts and societies
A partnership firm or proprietorship faces no statutory audit — only the tax audit under section 44AB of the Income-tax Act, 1961 when turnover crosses ₹1 crore (₹10 crore where cash receipts and payments each stay within 5%), or ₹50 lakh of gross receipts for a profession (no cash relaxation there; a professional declaring under section 44ADA is outside section 44AB altogether). Charitable trusts answer to section 12A(1)(b) read with Rule 17B, and Maharashtra housing societies to section 81 of the Maharashtra Co-operative Societies Act, 1960 — separate regimes with their own forms. Unsure which of these nets catches you? That is a ten-minute question for our audit team.