28. Accounting Records of Limited Liability Partnerships

(1) A Limited Liability Partnership must keep Accounting Records that are sufficient to show and explain its transactions so as to:

• (a) disclose with reasonable accuracy the partnership’s financial position at any time; and
• (b) enable the members to ensure that any accounts prepared by the partnership under this Part comply with the requirements of these Regulations and the Rules.

(2) A Limited Liability Partnership must ensure that its Accounting Records are:

• (a) kept at the place in the AIFC that the members consider appropriate, except so far as the Rules otherwise require; and
• (b) preserved by the partnership for at least 6 years after the day they are created or, if the Rules prescribe another period, the other period; and
• (c) open to inspection by a member or Auditor of the partnership at all reasonable times; and
• (d) otherwise kept and maintained as required by the Rules.

(2-1) If a Limited Liability Partnership, for whatever reason, ceases to exist or ceases to be a Limited Liability Partnership within the meaning of these Regulations, the partners immediately before the Limited Liability Partnership ceases to exist or ceases to be a Limited Liability Partnership shall ensure that its Accounting Records are preserved for at least 6 years after the date of such cessation.

(3) Contravention of this section is punishable by a fine.

29. Financial years of Limited Liability Partnerships

(1) The first financial year of a Limited Liability Partnership starts on the day it is incorporated and lasts for the period not exceeding 18 months decided by the members.

(2) The second or any subsequent financial year starts at the end of the Limited Liability Partnership’s previous financial year and lasts for 12 months or the other period, which is within 7 days either shorter or longer than the 12 months, decided by the members.

30. Accounts of Limited Liability Partnerships

(1) The members of a Limited Liability Partnership must ensure that accounts are prepared for the partnership in relation to each financial year of the partnership and that the requirements of this section are complied with in relation to the accounts.

(2) The accounts must:

1. (a) be prepared in accordance with accounting principles or standards prescribed by the Rules or otherwise approved by the Registrar of Companies; and
2. (b) show a true and fair view of the profit or loss of the Limited Liability Partnership for the financial year and of the state of the partnership’s affairs at the end of the financial year; and
3. (c) comply with any other requirements of these Regulations and the Rules.

(3) Within 6 months after the end of the financial year, the accounts for the financial year must be:

1. (a) prepared and approved by all the members; and
2. (b) signed on their behalf by at least 1 of the members; and
3. (c) examined and reported on by an Auditor subject to section 31 below.

(4) The Limited Liability Partnership must file a copy of its accounts for the financial year, and the Auditor’s report on the accounts, if applicable, with the Registrar of Companies within 7 days after the day the accounts have been reported on by the Auditor.

(5) Contravention of this section is punishable by a fine.