Audit of LLP

Every LLP required to audit its accounts in accordance with the LLP rules if the turnover of LLP exceeds Rs.40 lakhs or contribution exceeds Rs.25 lakhs.


LLP being a newly introduced hybrid form of business entity, quickly adopted by the small and medium businesses for its minimal requirements related to incorporation and management. Compared to any other business entity, LLP has less legal and regulatory formalities.

LLP Audit Requirement

Rule 24 (8) of the LLP Rules, 2009 deals with the requirements of auditing. Although every LLP is not required to get their accounts audited. 

Provided that any LLP (Limited Liability Partnership) registered in India, whose turnover does not exceed to Rs.40 lakhs in any financial year or contribution does not exceed to Rs.25 lakhs in any financial year, shall not require to audit their accounts. But if in case the designated partners of the LLP, who are exempted from the mandatory audit want to audit the accounts of such LLP, they can do so but only by the prescribed rule.

However, an LLP is required to audit their accounts by any Chartered Accountant in practice if its turnover or contribution exceeds the exempt limit i.e. in case of turnover more than Rs.40 lakhs and in case of contribution more than Rs.25 lakhs. The accounts of every LLP in India shall be audited in accordance with these rules.

Therefore, these two conditions are independent of each other. By fulfilling any of the conditions, accounts of the LLP are to be audited.

But for availing the exemption, LLP needs to file its accounts with the ROC (Registrar of Companies) which contain a statement of account and solvency by the partners to acknowledge the partners’ responsibilities for complying with all the requirements.

Appointment of Auditors

As per Rule 24 of Limited Liability Partnership Rules, 2009, any LLP falls under the mandatory audit compliances, designated partners have to appoint a practising chartered accountant as an auditor for the purpose of audit its accounts.

An auditor should be appointed within thirty days before the end of the financial year i.e. within 30 days from 31st March. In the case of first financial year of the LLP, Auditor shall be appointed before the end of the financial year.

If in case designated partner fails to appoint an auditor then partners may appoint an auditor. Remuneration of auditor has to be decided as per the provisions prescribed in the LLP agreement.

Removal of Auditor

An auditor can resign by giving a notice in writing which contains the reason of ceasing to hold office. The notice should be given at least 14 days before the end of the tenure to appoint a new auditor at the LLP’s registered office.

Auditor may be removed at any time as per the procedure prescribed in the LLP agreement, in the absence of which auditor can be removed with the consent of the partners.


In the case of non-comply with any requirement, shall attract the fine as following:




Minimum Rs.25000 which may extent to Rs.500000

Designated Partner

Minimum Rs.10000 which may extent to Rs.500000

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