LLP Audit Requirement in India — When Is a Statutory Audit Mandatory?

Quick answer: An LLP is required to have its accounts audited only if its annual turnover exceeds ₹40 lakh, or its partners' total capital contribution exceeds ₹25 lakh, in any financial year. Below both thresholds, a self-certified Form 8 (Statement of Account & Solvency) is sufficient — no auditor is required.

The Legal Basis

Rule 24 of the LLP Rules, 2009 sets the audit requirement. An LLP must get its accounts audited by a practising Chartered Accountant if, in any financial year, either:

• Its turnover exceeds ₹40 lakh, or
• The total contribution of its partners exceeds ₹25 lakh

Either condition on its own triggers the requirement — the LLP doesn't need to cross both.

What Happens Below the Threshold

An LLP that stays under both limits can file Form 8 on a self-certified basis — the designated partners themselves certify that the financial statements give a true and fair view, with no requirement for an external auditor's report. This is the more common situation for small and newly incorporated LLPs.

What Changes Once You Cross the Threshold

Once turnover or contribution crosses the limit in any financial year, the LLP must appoint a practising Chartered Accountant to audit its accounts for that year, and the audited financial statements — not a self-certified version — are what get filed with Form 8. The requirement is assessed year by year: crossing the threshold in one year and dropping back below it in a later year does not carry the audit requirement forward automatically, though most LLPs that have crossed once tend to stay above it.

Does This Apply Even to a Dormant or Zero-Turnover LLP?

No separate audit trigger applies to a dormant LLP — if turnover is zero and capital contribution is below ₹25 lakh, a self-certified Form 8 remains sufficient. Form 8 and Form 11 are still mandatory filings regardless of activity, but the audit requirement itself is purely about the turnover and contribution thresholds, not about whether the LLP did business.

Practical Takeaway

Check both numbers every year before filing Form 8: turnover for the financial year, and total partner contribution as it currently stands. If either is over the limit, get an auditor appointed before finalising accounts — filing without the audit when it was required isn't correctable by simply resubmitting Form 8 later without genuinely completing the audit first.

Not sure whether your LLP needs an audit this year, or want help getting one done? See our LLP Compliance service or call +91 73832 47698.