Procedure for Preparation and Filing of Financial Statements by LLP

Ronak Sharma

Ronak Sharma

Published on: Nov 13, 2025

Priya Gandhi

Updated on: Nov 13, 2025

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11

Introduction

A Limited Liability Partnership (LLP) in India, as a distinct legal entity under the Limited Liability Partnership Act, 2008, has a mandatory annual compliance requirement to prepare and file its financial statements with the Registrar of Companies (RoC), under the Ministry of Corporate Affairs (MCA).

Applicable Provisions

1. Section 34, 35 of the Limited Liability Partnership Act, 2008
2. Rule of 24, 25 of the Limited Liability Partnership Rules, 2009

Mandatory Requirements

1. Designated Partners Approval on Statement of Account and Solvency and Statement of Income and Expenditure
2. Follow a uniform financial year, which runs from April 1st to March 31st
3. File LLP Form 8 and LLP Form 11.

Procedure

1. Preparation of Statement of Account and Solvency:
   Every LLP must prepare the following, which reflects its financial position:
   • Statement of Account and Solvency (covering information about the LLP’s assets and liabilities) and
   • Statement of Income and Expenditure (comprising of balance sheet, and Profit & Loss Statement).
2. Statutory Audit Requirement:
   Accounts of an LLP are not mandatorily required to be audited every year, unless they cross specific financial thresholds, as under:
   • Mandatory Audit if:
     • Annual Turnover exceeds Rs. 40 Lakh in any financial year, OR
     • Total Contribution of partners exceeds Rs. 25 Lakh
   • The audit must be conducted by a Chartered Accountant appointed by the designated partners.

   Note: An LLP that does not meet either of these criteria is considered a Small LLP and is exempt from the statutory audit requirement under the LLP Act, 2008.

3. Approval by Designated Partners on Annual Returns:
   Designated Partners must approve and sign the Statement of Account and Solvency and Statement of Income and Expenditure, in accordance with the provisions of LLP agreement.
4. Filing of Annual Forms:
   LLP shall file following two Annual forms with Registrar of Companies:

   Requirement	MCA e-Form	Due Date	Purpose/Content
   Annual Return*	LLP Form 11	May 30	Summary of the LLP’s management, including details of partners/designated partners, changes, and total partner contribution.
   Statement of Account & Solvency	LLP Form 8	October 30	Filing of the financial statements, including the balance sheet, profit & loss statement, and a declaration of the LLP’s solvency (ability to pay its debts).

   *Note: The certification requirement for an LLP’s Annual Return (Form 11) is determined by its financial size: Designated Partner (other than the signatory) must certify the return if the turnover is up to Rs. 5 Crore OR the contribution is up to Rs. 50 Lakh, but a Company Secretary in Practice must certify it in all other cases (i.e., if turnover is over Rs. 5 Crore OR contribution is over Rs. 50 Lakh).

5. Final Approval and Confirmation on Filed Form:
   • If the ROC finds everything in order, they will approve the filing.
   • You will receive a formal confirmation, usually in the form of an email to the registered email ID of the LLP. This email will contain an approved copy of the Form challan/receipt or a confirmation that the document has been taken on record.
   • The status of your SRN on the MCA portal will change to “Approved”.