Statement of Account and Solvency (LLP Form 8)
Alongside the annual return, every Limited Liability Partnership must file a Statement of Account and Solvency — the LLP's second mandatory annual filing, made in Form 8, declaring the LLP's financial position and confirming its ability to meet liabilities as they fall due. Unlike the annual return, this LLP Form 8 filing goes to the heart of the LLP's finances, and getting it wrong carries both compliance and reputational risk.
At N D Savla & Associates, Chartered Accountants in Mumbai, we prepare and file Statement of Account and Solvency for LLPs across sectors, ensuring the financial figures and solvency declaration are accurate and properly certified before submission. Filed correctly and on time, this statement protects the LLP's designated partners from personal liability exposure that can arise from an inaccurate solvency declaration.
This page explains what Form 8 covers, who must file it, the deadline and penalty structure, our step-by-step filing process, the documents required, and how it differs from the annual return filed separately in Form 11.
What Is the Statement of Account and Solvency?
The Statement of Account and Solvency, filed in Form 8, is a mandatory annual declaration under Section 34 of the LLP Act, 2008, in which the LLP's designated partners certify the LLP's financial statements and confirm whether the LLP is able to pay its debts as they fall due in the normal course of business.
The filing has two parts — a statement of assets and liabilities, and a declaration of solvency signed by the designated partners. Where the LLP's turnover or contribution crosses prescribed thresholds, the financial statements underlying Form 8 must be audited before filing.
Note: A false or careless solvency declaration exposes designated partners personally — the declaration is a certification, not a formality, and should only be signed after the underlying financial statements have been properly reviewed.
Who Must File the Statement of Account and Solvency?
Every LLP, Regardless of Turnover
All registered LLPs must file Form 8 annually, whether or not the LLP crosses the statutory audit threshold — the difference lies only in whether audited or unaudited accounts are attached.
LLPs Above the Audit Threshold
LLPs with turnover exceeding ?40 lakh or contribution exceeding ?25 lakh must have their accounts audited before filing Form 8, making early engagement with an auditor essential to avoid a last-minute scramble ahead of the deadline.
LLPs With Complex Financial Positions
LLPs with significant liabilities, related-party transactions, or ongoing disputes should take particular care with the solvency declaration, since it directly represents the designated partners' assessment of the LLP's ability to pay debts as they fall due.
How Has Financial Reporting for Partnerships Evolved in India?
Traditional partnership firms under the Indian Partnership Act, 1932 had no statutory requirement to file annual financial statements or a solvency declaration with a central Registrar — partners maintained accounts privately, and disclosure obligations depended largely on tax law rather than partnership law itself. There was no public, Registrar-level record of a firm's financial health.
As India's economy modernised after the 1991 liberalisation, banks, investors, and clients increasingly expected the kind of financial transparency that companies were already required to provide under the Companies Act. When the Limited Liability Partnership Act, 2008 came into force in 2009, Section 34 built this transparency directly into the LLP structure, requiring every LLP to file a Statement of Account and Solvency annually — a level of financial disclosure the old partnership regime never required.
Since then, the audit threshold and filing mechanics have been refined through subsequent notifications, and MCA's online filing system has made Form 8 submission faster than the manual bookkeeping era before 2009, though the underlying obligation to certify solvency accurately has remained a constant, serious responsibility for designated partners throughout.
What Is the Step-by-Step Process for Filing Form 8?
- Financial Statement Preparation — We prepare or review the LLP's statement of assets and liabilities for the year.
- Audit Threshold Check — We confirm whether the LLP crosses the audit threshold and arrange an audit if required.
- Solvency Assessment — We work with designated partners to properly assess the LLP's ability to meet liabilities as they fall due.
- Form 8 Preparation — We prepare the statement with all financial figures and the solvency declaration completed accurately.
- Partner Certification — Designated partners review and sign off on the statement before filing.
- Filing with the Registrar — The statement is filed electronically within the prescribed deadline.
- Record Retention — We retain the filed statement and working papers for future reference.
What Documents Are Required for Filing Form 8?
- Statement of assets and liabilities for the financial year
- Statement of income and expenditure
- Audited financial statements, where the LLP crosses the audit threshold
- Designated partner details and digital signatures
- Details of any secured borrowings or contingent liabilities
What Is the Due Date and Penalty for Late Filing of Form 8?
| Item | Detail |
|---|
| Filing form | Form 8 (Statement of Account and Solvency) |
| Due date | Within 30 days from the end of six months of the financial year (generally 30th October) |
| Audit requirement | Mandatory above ?40 lakh turnover or ?25 lakh contribution |
| Late fee | Additional daily fee with no upper limit |
Warning: Because Form 8 requires a personal solvency certification from designated partners, filing it without a proper review of the underlying financial position exposes those partners to risk well beyond the late fee itself — the accuracy of the declaration matters as much as the timing.
Why Choose N D Savla & Associates for Statement of Account and Solvency Filing?
- Accurate financial preparation — statements reviewed before the solvency declaration is signed.
- Audit coordination — seamless handling where the LLP crosses the statutory audit threshold.
- Deadline tracking — proactive reminders well ahead of the October filing deadline.
- Attention to solvency risk — not just form-filling.
For the LLP's structural annual filing, see our Annual Return of LLP service. LLPs needing broader agreement or partner changes reflected before their solvency filing should review our Information for LLP Agreement and Changes and LLP Form 11 Filing pages.
Related LLP Compliance Services
Frequently Asked Questions on Statement of Account and Solvency
What is the Statement of Account and Solvency for an LLP?
It is a mandatory annual filing in Form 8 in which designated partners certify the LLP's financial statements and declare whether the LLP can pay its debts as they fall due.
What is the due date for filing Form 8?
Form 8 is generally due within 30 days from the end of six months of the financial year, typically by 30th October.
Is audit mandatory for filing Form 8?
Audit is mandatory only where the LLP's turnover exceeds ?40 lakh or contribution exceeds ?25 lakh; below these thresholds, unaudited accounts can be filed.
What is the difference between Form 8 and Form 11?
Form 8 reports the LLP's financial position and solvency declaration, while Form 11 (the annual return) reports the LLP's partner and contribution structure — both are mandatory and filed separately.
What happens if Form 8 is filed late?
Late filing of Form 8 attracts an additional daily fee with no upper limit, in addition to the underlying obligation to file accurately.