Procedure Filing Form 8: LLP Annual Compliance | Ebizfiling

   Introduction 

 

Since a Limited Liability Partnership is a separate legal entity, it is the duty of the designated partners to preserve and maintain proper books of accounts and submit an annual return to the Ministry of Corporate Affairs (MCA). There is 3 mandatory annual compliance for an LLP that is Form 8, Form 11, and ITR-4. In this blog, we will mainly focus on the process to file a statement of account and solvency i.e. Form 8. This form is required to file within 30 days of the end of the six-month period after the end of the financial year.

 




 What is an LLP? 

 

The Limited Liability Partnership (LLP) is an alternative corporate business structure that provides the partners with the flexibility to draft the clauses of an LLP agreement and limited liability to partners. One of the goals of forming an LLP is to have less legal compliance.

 

 What is Form 8 of an LLP? 

 

The form is known as Statement of Account and Solvency. Form 8 is one of the mandatory compliance for LLP which should be filed annually. The LLP must disclose information about financial transactions carried out during that financial year as well as its financial position at the closure of the financial year in Form 8. The LLP must also declare its financial position by stating the following:

 

  • The annual turnover is either Rs. 40 lakhs or less.

  • The LLP has to submit a statement indicating the addition, modification, or satisfaction of debts up to the current financial year.

  • The partners or authorized representatives have complied with their responsibilities to maintain accurate accounting records and prepare financial statements.

 

 Requirements and attachment of Form 8  

 

Listed below are the requirements for the filing of Form 8 and attachments with the form:

 

  • Both designated partners should provide digital signatures.

  • It is necessary to obtain certification by the auditor of the LLP if the annual total of firm exceeds Rs. 40 lakhs or the contribution of each partner reaches Rs. 25 lakh.

  • LLP should attach certain documents such as a copy of the balance sheet of LLP, profit and loss statement, MSME 2006 disclosure, and statement of contingent liabilities not anticipated, if any.

 

 The process to file Form 8 of an LLP 

 

  • First, visit the MCA portal.

 

  • On the right corner of the website, click on "Sign in/ Sign up". Then add the required credentials and click on "Login for V3 filing".

 

  • After login goes to the MCA service and clicks on the "LLP e-filing".

 

  • The list of the e-form that are filed by LLP will appear on your screen, click on Form 8. A web-based Form 8 will appear on the screen.

 

  • On the right corner of the Form 8 option of language "English/Hindi", click on the language which suits you.

 

  • Write the LLPIN (LLP identification number)/ FLLPIN (Foreign LLP identification number) of the proposed LLP. The details such as an address, name of the LLP, jurisdiction, etc. will be filled automatically as per the details provided by you during the incorporation of the LLP.

 

  • Next fill in the all details of Part A: Statement of accounts and solvency.

 

  • Scroll down and fill the Part B: Information of statement of assets and liability. Fill in the details of the previous financial year. This information can be taken from the balance sheet prepared during the Board Meeting.

 

  • Then fill in the details of income and expenditures from the profit and loss statement prepared during the Board Meeting.

 

  • Attach the DSC (Digital Signature Certificate) of the designated partners (DPs) of LLP. Also, attach the DSC of the CS professional for authentication.

 

  • After completing the form, login to MCA again and upload the Form 8 of Statement of Accounts and Solvency.

 

  • After the form has been successfully uploaded, a popup asking for payment will appear. Pick a payment method. Following a successful payment, a message will appear, and a challan will be generated. Keep a copy for your record. The SRN number will also be on the challan.

 

 Due Date of Form 8 

 

The Form 8 is filed by an LLP every year and it should be filed after the closure of the financial year. The Form 8 should be filed on 30th October every year.

 

 Bottom line 

 

The Form 8 Statement of Accounts and Solvency must be filed on a regular basis to maintain the active status of the Limited Liability Partnership (LLP). Failure to file the LLP annual compliance will result in severe fines imposed by the law. The fine imposed by the authorities for the failure to file depends upon the capital contribution structure of the LLP.

 

 

 

 

 

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