Exemption on Filing LLP Form 8: What You Need to Know

Introduction

LLP Form 8 is an important annual compliance requirement for all Limited Liability Partnerships in India. It includes a statement of accounts and solvency and must be filed with the MCA every year. However, not all LLPs are required to file this form right away. In this blog, we’ll explain who gets an exemption from filing LLP Form 8 and under what conditions. Understanding these rules can help you avoid penalties and stay compliant.

What is LLP Form 8?

All Limited Liability Partnerships (LLPs) in India must submit LLP Form 8 as a mandatory annual filing under the LLP Act, 2008. This form contains two key components:

• Statement of Account and Solvency: A declaration by the designated partners about the financial position of the LLP and its ability to pay debts.
• Details of Assets, Liabilities, and Income/Expenditure: A snapshot of the LLP’s financial transactions during the financial year.

Designated partners must file this form with the Ministry of Corporate Affairs (MCA) every year, typically by 30th October. A practicing professional (CA/CS/CMA) must certify the form and the designated partners must sign it. If you fail to file it on time, you may incur a penalty that increases with delay, up to 12 times the normal fee.

General Requirements for Filing LLP form 8

All LLPs registered under the LLP Act, 2008 must meet the following requirements for filing Form 8:

• Annual Filing Obligation: Every LLP, regardless of its business activity or turnover, must file Form 8 annually with the Ministry of Corporate Affairs (MCA)
• Due Date: You must file the form within 30 days from the end of six months of the financial year, i.e., on or before 30th October each year.
• Financial Records: The LLP must maintain proper books of accounts either on a cash basis or accrual basis and prepare a Statement of Account and Solvency as per prescribed guidelines.
• Digital Signatures: The form must be digitally signed by at least two designated partners of the LLP.
• Certification by Professional: The form must be certified by a Chartered Accountant (CA), Company Secretary (CS), or Cost Accountant (CMA) in practice.

Exemption on Filing LLP Form 8

Under the LLP Act, 2008, every registered LLP must file Form 8 (Statement of Account and Solvency) with the Ministry of Corporate Affairs (MCA) every year. However, the authorities may exempt some LLP especially new or inactive ones from this rule to reduce their compliance burden. Let’s look at the situations where these exemptions apply.

1. LLPs Incorporated After 30th September of the Financial Year

If an LLP is incorporated after 30th September of a particular financial year, it is not required to file Form 8 for that financial year. This exemption is provided because such LLPs operate for less than six months in the financial year, making it impractical to prepare a full statement of accounts and solvency. Though one should check the LLP agreement to confirm the 1st accounting year applicability.

Example: Suppose you registered your LLP on 10th October 2024. Since you formed it after 30th September, you are exempt from filing Form 8 for the financial year 2024–25. However, you must comply with the filing requirements starting from the financial year 2025–26.

2. LLPs in the Process of Strike Off or Closure

LLPs that are in the process of applying for strike-off under Form 24 or are undergoing dissolution or winding up may be exempt from filing Form 8 for the current financial year; provided there have been no financial transactions or business operations during that period.

This exemption applies only if:

• The LLP has filed Form 24 with the ROC.
• There has been no commercial activity, income, or expenditure during the financial year.
• The ROC has not issued any notice requiring compliance filings before the strike-off is complete.