Importance of LLP Form 8 Filing: Statement of Account and Solvency

 

All Limited Liability Partnerships (LLPs) registered in India are required to file LLP Form 8 or Statement of Account and Financial stability every year. In Spite of the LLP’s turnover, Form 8 must be submitted with the Ministry of Corporate Affairs (MCA).

What is Form-8?

It is a statement made by all Designated Partners of an LLP as to whether or not they are able to pay the LLP’s liabilities on time when they fall due in the normal course of business. LLP firms must produce statements of accounts and solvency, which must be submitted with the Registrar of Companies by all designated partners within 30 days of the end of the financial year to which the statement of accounts relates, along with the necessary fees.

Moreover, every LLP is required to keep books of accounts using the double-entry system of accounting and to submit a Statement of Accounts and Solvency (Accounts) for each financial year on March 31st.

What are the documents to be attached in Form 8?

  • The MSME Development Act of 2006 requires disclosure (this attachment is mandatory)
  • Financial Statements That Have Been Audited (if applicable)
  • Contingent Liability Statement (if contingent liability exists).
  • Any other documentation that may be requested.

What is the procedure for submitting an LLP Form-8?

The steps to submit an LLP Form-8 are as follows:

  • Double-check that the form is completely filled out.
  • Sign the Form-8 digitally using the partners’ DSC.
  • Have Form 8 signed by the Company Secretary if necessary.
  • Click an eform pre-scrutiny.
  • Submit the form using the MCA Portal.
  • You must pay the ROC Fee.

Important Factors to consider When Filing LLP Form 8

The following are important factors for LLPs when submitting Form 8.

  • Annual Return of Limited Liability Partnership Year, Financial Year Start Date, and LLP Registration Number
  • LLP’s registered office address and any further addresses.
  • Details about the contribution amount.
  • Contribution, Secured Loan, Unsecured Loan, Fixed Assets are all included on the statement of account.
  • Details of the Income and Expenditure Statement (Sale of Goods, Services, Expenses, etc.)
  • Sign with the Designated Partner’s DSC.

What are the contents of Form 8 (Statement of Account & Solvency)?

Statement of Account & Solvency is another name for Form 8. The LLP must submit information of financial transactions made throughout the financial year, as well as its balance at the conclusion of the financial year, on Form 8. Apart from its financial situation, the LLP must also:

Part A – Statement of Solvency:

  • Declare a turnover of more than 40 lacs or less than 40 lacs.
  • Declare a contribution of more than 25 lacs or less than 26 lacs.
  • Declare that the LLP has already submitted a statement detailing the formation, modification, or satisfaction of charges for the current financial year.
  • Declare that the partners/authorized representatives have taken reasonable care and responsibility for maintaining adequate accounting records and accounting preparation.

Part B – Income & Expenditure and Statement of Accounts:

Accounts Statement: It contains the following information:

  • The funds of the partners (contribution, profit/loss, and so on).Liabilities (secured loans, unsecured loans, short-term borrowings, shareholders accounts payable, income provisions). Finally, assets (fixed assets, investments, loans and advances, inventory, debtors/trade receivables, cash and cash equivalents, and so on) are taken into account.
  • Income and Expenditure Statement: It comprises the following information: Turnover, other revenue, increase/decrease in inventories (raw materials, work-in-progress, and finished commodities) are all examples of income.
  • Expenditures (purchases, personal expenditures, administrative expenditures, selling expenses, depreciation, interest, profit before taxes, provision for tax, profit after tax, profit transferred to Partners’ account, profit transferred to Reserves, and surplus) are the second category.

 

How can we help you?

The process of filing form 8 involves huge paperwork. If you are thinking about the hassle involved in it, We Taxxinn can help you in completing the process without any hassle. Our experts will prepare all the sets of required documents and submit it to the Ministry of Corporate Affairs (MCA) of the Indian Govt. and the Registrar of Companies (RoC). For further information reach us out.

Search

Get in touch with us.