The Statement of Account & Solvency (LLP Form 8) is one of the annual compliance e-form for the LLPs operating in India. This document gives a detailed report of the financial position of an LLP such as its assets, its liabilities and solvency position. It has to be filed with the Registrar of LLPs so as to conform to the regulations and to ensure legal readiness in financial related issues.

The Indian LLPs have less number of compliance filings to be done annually than private limited company are required to do but it is essential to do these filings to escape the implications that can cost a pretty penny. For Instance, while private companies attract penalties up to INR 1 lakh in case non- compliance, the same punishment can be up to INR 5 lakhs in case of LLPs. Therefore, there is a need to make the annual filings more timely.

Every LLP must submit the following forms each fiscal year, regardless of its financial performance:

• LLP Form 11 (Annual Return): Due by May 30th

• LLP Form 8 (Statement of Account & Solvency): Due by October 30th

• ITR-5 (Income Tax Return): Due by July 31st if no tax audit is needed; otherwise, by September 30th.

LLP Form 8 is an annual form in which all the LLPs report their status of their financial structure. Here are the key aspects:

• Annual Requirement: Due on October 30th every year, it contains details of the financial year ending March 31st. 

• Content: Financial statements include balance sheet, the income statement also known as the statement of profit and loss and other comprehensive income and the sworn statement of solvency. 

• Solvency Declaration: This affirms the ability of the LLP in the provision of financial obligation. One cannot afford to taint his or her business with any signs of insolvency no matter the circumstances. 

• Compliance: Filing is compulsory; otherwise the possible consequences would be penalties.

• Audit Requirements: For instance, if the turnover was high, then it could be mandatory to prepare audited financial statements.

The Limited Liability Partnership Act, 2008 and rules made there under govern Form 8. 

• Structure of Form 8  

Form 8 consists of two main sections:

Part A: Balance sheet, which proves solvency of the LLP as well as it’s capacity to pay its liabilities. 

Part B: Openings; Income and expenditure accounts: the balance sheet. 

• Filing Deadline 

The due date for filing the form is October 30 of the respective year irrespective of whether the LLP has started carrying out its operations or not. 

• Information Needed for Filing

To file Form 8, you need:

1. LLPIN (Identification Number)

2. LLP’s name and address

3. Jurisdiction of the police station for the registered office of the LLP

4. Financial statements as of March 31st

5. the turnover and the contribution of all the claims. 

• Required Attachments

When filing Form 8, the following documents are required to be attached:

1. Publicity under Micro, Small and Medium Enterprises Development Act, 2006

2. An account of contingent assets and liabilities

• Small LLPs 

A “Small LLP” is an LLP that complies with certain norms based on turnover and the contribution. Such classification is useful in minimizing compliance costs, charges, and other penalties that accompany non-compliance. 

As per the LLP (Amendment) Act, 2021, if an LLP meets the following criteria, it shall be considered as a Small LLP:

1. The contribution of the LLP does not exceed INR 25 Lakhs or any prescribed amount, not exceeding INR 5 Crores.

2. The turnover of the LLP as per the previous financial year does not exceed INR 40 Lakhs or such prescribed amount, not exceeding INR 50 Crores.

• Filing Fees 

The fees for filing Form 8 also depends on the contribution made to the LLP and it ranges from INR 50 for the contribution of upto amounts INR 600 and so on. 

• Late Filing Penalties 

Penalty for late filing also ranges with reference to the period of delay and differential rates depending upon whether the filing is done by Small LLP or otherwise. 

• Certification 

The Form 8 has to be signed by the Designated Partners and certified by a qualified professional.

• Filing Procedure for Form 8

To file Form 8, follow these steps: 

1. Access the MCA Homepage: Open Ministry of Corporate Affairs website. 

2. Log In: Enter your username and password are two other sample snippets of text that can be used. 

3. Select E-Filing: Clients should go to MCA’s service called “E-Filing. ” 

4. Go to Form 8: Select from the dropdown menu "Statement of Account & Solvency. "

5. Fill Out the Form: Type in the necessary information and if it is not ready to be sent, one can just click save for later. 

6. Submit: Upon the completion of the form, the service request number – SRN is issued. 

7. Affix Digital Signature: At the end of the form, you can sign this form using Digital Signature Certificate (DSC). 

8. Make Payment: That way be sure to pay the filing fee as expected. 

9. Receive Acknowledgment: As soon as a payment is successfully completed – receive an acknowledgment.

The compliance management for LLPs has been made hassle-free by InstabizFilings. Our team would be glad to assist you in filing LLP Form 8 and maintaining your LLP’s registration with the Ministry of Corporate Affairs hence providing you with legal compliance. Regardless of whether you are a new LLP or an ongoing one, we make it easy for you and ensure that you do not fall foul of the law.

Filing fees for the Statement of Account & Solvency (Form 8) at India's MCA depends on the LLP contribution amount. Below are fees for this document:.

For Small LLPs:

For Other than Small LLPs:

It is, however, important to note that the penalty for late filing depends on the degree of the delay and whether the LLP is a Small LLP, or Other than Small LLP.