MCA Extends Deadline for Filing LLP Form 8
After Private Limited Company, Limited Liability Partnerships is the second most preferable mode of company registration in India. It is quite popular in professionals from multiple disciplines who want to enter into partnership and bring together their collective expertise and know how to set up business in India.
Every Limited Liability Partnerships in India has to comply with rules and regulations of both LLP Act as well as Companies Act. Accordingly, every year, LLPs need to file form 11 and form 8 with ROC. Form 8 is Statement of Solvency which needs to be filed on or before 31st October every year.
COVID pandemic has severely affected the business community all over the world including India and accordingly, government has provided lot of relaxation in annual compliance deadlines.
The Ministry of Corporate Affairs (MCA) in its vide General Circular No. 16/2021 dated 26th October, 2021 has notified certain relaxations in the additional fees payments in case of delayed LLP Form 8 (Statement of Account and Solvency) filing.
The date for filing the form without any additional fees has been extended to up to 30th December, 2021. The decision was made with respect to the representation received by the ministry for extending the form filing time period. The representatives have asked for this extension on account of the COVID-19 pandemic and challenges posted by it to the Limited Liability Partnerships (LLPs).
Here are the frequently asked questions related to Form 8 LLP to clarify any doubts related to the same.
What is LLP Form 8?
Every LLP is required to file LLP Form 8 in each financial year irrespective of their annual turnover. The Form 8 is also known as the Statement of Account and Solvency. It is to be filed with the Ministry of Corporate Affairs (MCA).
What items are to be filed in the LLP Form 8?
The LLPs in India are required to provide the financial transactions undertaken and the company’s financial position at the completion of a financial year. The following information is to be filed in the Form 8-
- Declaring whether the turnover is less than or more than Rs.40 Lakhs in total.
- Declaring whether the partners and authorized representatives of the LLP have properly and responsibly maintained the adequate records, books of accounts and prepared them with fairness and trueness.
- Declaring whether the LLP has filed its financial statements and have properly indicated the creation or modification or satisfaction of charges till the current fiscal year.
What is the due date to file LLP Form 8?
The due date for filing Form 8 for LLP is 30th October every year. In case of failing to file the same, a penalty of Rs.100 per day is levied on the defaulter. Owing to the COVID-19 pandemic, this year the due date to file LLP Form 8 has been extended till 30th December, 2021.
What are the attachments to be annexed with LLP Form 8?
The following documents are to be attached with the LLP Form 8 while filing-
- Disclosure as per the Micro, Small and Medium Enterprises (MSME) Development Act, 2006 is mandatorily attached.
- Statement of Contingent Liabilities is to be attached
- Any other important information that is to be provided as an optional attachment with the Form 8.
- Particulars of financials
It is to be noted that the Form 8 is to be digitally signed by any two designated partners in the LLP or the Authorized Representative in case of a Foreign LLP.
In case where the turnover of the LLP is more than Rs.40 Lakhs or the obligation of contribution of the partners is above Rs.25 Lakhs then the form must be certified by the auditor in the company.
Thus, extension of due date in case of LLP is a welcome move and would provide some relief to Indian businessmen who are overburdened with lot of taxation and regulatory compliance.