Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
The ₹40 lakh / ₹25 lakh test
Cross either threshold and audit is required for that year. Confirm current limits.
Below = exempt
A small LLP under both limits still files Form 8 and Form 11, but no audit — a key advantage over companies.
Filings an LLP still owes
Even an LLP below both audit thresholds still carries compliance obligations. It must file Form 11 (annual return) by 30 May and Form 8 (statement of accounts and solvency) by 30 October each year, and maintain proper books. Where turnover crosses ₹40 lakh or contribution crosses ₹25 lakh, a CA audit is added and the accounts in Form 8 are backed by it. Designated partners also sign a solvency declaration in Form 8. Late filing of either form carries ₹100 per day with no cap, which can dwarf the cost of timely filing — so the audit exemption is a saving on the audit only, not on the annual returns. An LLP that crosses the ₹5 crore turnover mark in any preceding year may also face a separate income-tax audit under Section 44AB, which is distinct from the LLP Act audit.