LLP Form 8 – Statement of Account & Solvency
LLP Form 8 – Statement of Account & Solvency
The Statement of Account & Solvency (LLP Form 8) is a vital annual filing requirement for Limited Liability Partnerships (LLPs) in India. This document is a comprehensive financial snapshot, encompassing details of an LLP’s assets, liabilities, and solvency status. Filed with the Registrar of LLPs, the Statement of Account & Solvency is pivotal in ensuring regulatory compliance and transparency in an LLP’s financial affairs. This article delves into the significance and key aspects of the LLP Form 8 and financial accountability for LLPs operating in India.
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Annual filings for Limited Liability Partnerships (LLPs) are essential to ensure compliance and avoid significant penalties imposed by the law for non-compliance. LLPs have relatively fewer annual compliance requirements compared to private limited companies. However, the penalties for non-compliance can be substantial. While a Private Limited company may face penalties of INR 1 lakh for non-compliance, an LLP could be liable for fines of up to INR 5 lakh. LLPS must fulfil their periodic filing obligations to maintain legal compliance.
MCA LLP Compliance Chart
Every fiscal year, all LLPs registered in India are required to submit the following forms, irrespective of their profits or turnover:
- Filing of MCA LLP Form 11 – Annual Return – Due on 30th May
- Filing of LLP Form 8 under MCA – Statement of Account and Solvency – Due on 30th October
- ITR-5 – Income Tax Return for LLP – Due on 31st July if Tax Audit is not required. It is due on 30th September if a tax audit is required.
LLP Form 8 – Statement of Account & Solvency
MCA LLP Form 8, the Statement of Account and Solvency, is an annual filing requirement for all Limited Liability Partnerships (LLPs) registered in India. LLPs are required to file this document annually with the Registrar of LLPs. It provides a snapshot of the LLP’s financial position, including its assets, liabilities, and solvency. Regardless of the LLP’s turnover, submitting Form 8 to the Ministry of Corporate Affairs (MCA) every year is mandatory.
Here are some key points about the Statement of Account & Solvency (LLP Form 8):
- Annual Filing: LLPs are required to file LLP Form 8 every year. This filing must be done within 30 days from the end of 6 months of the financial year to which it relates. In other words, the deadline for filing is typically October 30th each year.
- Contents: The Statement of Account & Solvency includes financial information such as the balance sheet, a statement of profit and loss, and a statement of changes in financial position. It also declares the solvency of the LLP.
- Solvency Declaration: The solvency declaration is a crucial part of this filing. It confirms that the LLP can pay its debts as they become due in the normal course of business. If there is any insolvency, it should be disclosed in this document.
- Statutory Compliance: Filing LLP Form 8 is mandatory for LLPs; failure to do so can result in penalties. It is important to maintain compliance with the LLP Act and regulations.
- Audit: The financial statements included in the Statement of Account & Solvency may need to be audited, depending on the LLP’s turnover and other criteria. Audited financials provide an additional level of assurance about the accuracy of the financial information.
Laws Governing Form 8
Form 8 is governed by the provisions of Section 34(2) and 34(3) of The Limited Liability Partnership Act, 2008, in conjunction with Rule 24 of The Limited Liability Partnership Rules, 2009.
Components of Form 8
Form 8 is divided into two sections, each critical in the LLP’s financial reporting and compliance. Form 8 comprises two main parts:
- Part A – Statement of Solvency: In this section, the LLP declares its solvency, confirming its ability to meet its financial obligations as they become due in the normal course of business. If there are any signs of insolvency, they should be disclosed here.
- Part B – Statement of Accounts, Statement of Income, and Expenditure: This part provides detailed financial information about the LLP, including its balance sheet, statement of profit and loss (income and expenditure statement), and any changes in financial position.
The due date for Filing LLP Form 8
The due date for filing the Statement of Account & Solvency (Form 8) is October 30th every year. It’s important to note that this filing requirement applies to all Limited Liability Partnerships (LLPs), regardless of whether the LLP has commenced its business activities.
Compliance with this annual filing is mandatory to meet regulatory obligations and maintain transparency in financial matters.
Required Details for Filing Form 8
To file the Statement of Account & Solvency (Form 8) successfully, the following details and information are required:
- LLPIN (Limited Liability Partnership Identification Number)
- LLP Name and Address of the LLP
- Jurisdiction of Police Station for the registered address of the LLP
- Whether any charge is modified in favour of an Asset Reconstruction Company (ARC) or assignee
- Statement of Assets and Liabilities as of 31st March
- Statement of Income and Expenditure for the financial year
- Whether the turnover of the LLP exceeds Rs 40 lakhs
- Whether the obligation of contribution exceeds Rs 25 lakhs
These details are essential for the accurate and compliant filing of Form 8 for your Limited Liability Partnership (LLP).
Attachments Required with LLP Form 8
When filing Form 8 for a Limited Liability Partnership (LLP), the following documents must be attached:
- Mandatory: Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006.
- A statement of contingent liabilities in case of emergency liabilities.
- Any additional details may be provided as optional attachments.
Small LLP
A “Small LLP” is a recent concept introduced by the LLP (Amendment) Act 2021. It refers to a Limited Liability Partnership meeting the following criteria:
- Its contribution does not exceed Rs 25 lakhs or a higher amount, as determined by the Government (up to a maximum of Rs 5 Crores).
- Its turnover in the previous financial year does not exceed Rs 40 lakhs or a higher amount, as determined by the Government (up to Rs 50 Crores).
Creating Small LLPs is to alleviate the compliance burden, reduce normal fees, lower penalties for non-compliance, and eliminate the necessity for professional certification. Designated partners of a Small LLP can self-certify all LLP and ROC documents, streamlining the process.
MCA Fees for filing Form 8
The filing fee for the Statement of Account & Solvency (Form 8) with the Ministry of Corporate Affairs (MCA) in India varies based on the LLP’s contribution amount. Here is the fee structure:
| Contribution Amount | Fee Applicable |
| Up to Rs 1,00,000 | Rs 50 |
| More than Rs 1,00,000 up to Rs 5,00,000 | Rs 100 |
| More than Rs 5,00,000 up to Rs 10,00,000 | Rs 150 |
| More than Rs 10,00,000 up to Rs 25,00,000 | Rs 200 |
| More than Rs 25,00,000 up to Rs 1,00,00,000 | Rs 400 |
| More than Rs 1,00,00,000 | Rs 600 |
The applicable fee depends on the LLP’s total contribution amount, and it is important to ensure that the correct fee is paid to complete the filing process accurately and in compliance with the regulations.
Additional Fee (Penalty) for Filing Form 8
For Small LLPs:
| Period of Delay | Additional Fee (INR) |
| Up to 15 days | 1 time of normal filing fees |
| More than 15 days and up to 30 days | 2 times of normal filing fees |
| More than 30 days and up to 60 days | 4 times of normal filing fees |
| More than 60 days and up to 90 days | 6 times of normal filing fees |
| More than 90 days and up to 180 days | 10 times of normal filing fees |
| More than 180 days and up to 360 days | 15 times of normal filing fees |
| Beyond 360 days | 15 times of normal filing fees plus Rs. 10 per day for everyday delay beyond 360 days |
For Other than Small LLPs:
| Period of Delay | Additional Fee (INR) |
| Up to 15 days | 1 time of normal filing fees |
| More than 15 days and up to 30 days | 4 times of normal filing fees |
| More than 30 days and up to 60 days | 8 times of normal filing fees |
| More than 60 days and up to 90 days | 12 times of normal filing fees |
| More than 90 days and up to 180 days | 20 times of normal filing fees |
| More than 180 days and up to 360 days | 30 times of normal filing fees |
| Beyond 360 days | 30 times of normal filing fees plus Rs. 20 per day for everyday delay beyond 360 days |
Please note that the penalty for late filing varies depending on the duration of the delay and whether the LLP is categorized as a Small LLP or Other than a Small LLP.
Certification Requirements for Form 8
The Statement of Account & Solvency (Form 8) needs to be certified by designated partners of the Limited Liability Partnership (LLP) as well as a qualified professional, such as a Chartered Accountant (CA), Company Secretary (CS), or Cost and Works Accountant (CWA).
Key Points to Note:
- LLPs are required to file Form 8 annually.
- The filing deadline is within 30 days from the end of six months from the end of the financial year, typically falling on October 30th each year.
- Properly maintained financial records and, in some cases, audited financials are essential for accurately completing Form 8.
- Filing Form 8 is mandatory for LLPs, and failure to do so can result in penalties and non-compliance with regulatory requirements.
Procedure to file FOrm 8
The procedure to File Form 8 (Statement of Account & Solvency) is explained below:
Option 1:
- Access MCA Homepage: Go to the Ministry of Corporate Affairs (MCA) homepage.
- Login to MCA Portal: Log in to the MCA portal using your valid credentials.
- Select MCA Services: From the portal, select “MCA Services.”
- Choose E-Filing: Within MCA Services, choose “E-Filing.”
- Download LLP Forms: Navigate to “LLP Forms Download.”
- Access Form 8: In the LLP Forms section, select “Statement of Account & Solvency and Charge filing.”
- Enter LLP Information: Fill in the required information related to your Limited Liability Partnership (LLP).
- Search LLPIN/FLLPIN (Optional): Using the search feature, you can search for your LLPIN/FLLPIN.
- Select LLPIN/FLLPIN (Optional): If your LLPIN/FLLPIN is found, select it from the dropdown menu.
- Fill Up the Application: Complete the application form with all the necessary details.
- Save as Draft (Optional): You can save the webform as a draft for later completion.
- Submit the Webform: Once the form is complete, submit it.
- SRN Generation: An SRN (Service Request Number) will be generated upon submission. Keep this number for future correspondence with MCA.
- Affix the DSC: Digitally sign the form with your Digital Signature Certificate (DSC).
- Upload DSC-Affixed Document: Upload the PDF document with your DSC affixed to it on the MCA portal.
- Pay Fees: Proceed to make the required payment for filing. Ensure you do this within 15 days of SRN generation and complete the payment within 7 days of successfully uploading the DSC-affixed document. Alternatively, pay by the due date of filing of the form plus 2 days, whichever is earlier. Failure to do so may result in the cancellation of the SRN.
- Acknowledgement Generation: An acknowledgement will be generated once the payment is successful.
Option 2:
- Access MCA Homepage: Go to the Ministry of Corporate Affairs (MCA) homepage.
- Access Form 8: Use the search bar on the MCA homepage to access “LLP Form No. 8 directly.”
- Login to MCA Portal: Log in to the MCA portal using your valid credentials.
- Enter LLP Information: Fill in all the required LLP information.
- Search LLPIN/FLLPIN (Optional): Using the search feature, you can search for your LLPIN/FLLPIN.
- Select LLPIN/FLLPIN (Optional): If your LLPIN/FLLPIN is found, select it from the dropdown menu.
- Fill Up the Application: Complete the application form with all the necessary details.
- Save as Draft (Optional): You can save the webform as a draft for later completion.
- Submit the Webform: Once the form is complete, submit it.
- SRN Generation: An SRN (Service Request Number) will be generated upon submission. Keep this number for future correspondence with MCA.
- Affix the DSC: Digitally sign the form with your Digital Signature Certificate (DSC).
- Upload DSC-Affixed Document: Upload the PDF document with your DSC affixed to it on the MCA portal.
- Pay Fees: Proceed to make the required payment for filing. Ensure you do this within 15 days of SRN generation and complete the payment within 7 days of successfully uploading the DSC-affixed document. Alternatively, pay by the due date of filing of the form plus 2 days, whichever is earlier. Failure to do so may result in the cancellation of the SRN.
- Acknowledgement Generation: An acknowledgement will be generated once the payment is successful.
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