The Ministry of Corporate Affairs (MCA) has recently taken a significant stride by issuing General Circular No. 08/2023 on August 23, 2023. This circular serves as a response to the challenges faced by Limited Liability Partnerships (LLPs) in fulfilling their filing obligations. The essence of this circular lies in its provision of a one-time relaxation to LLPs concerning the submission of specific forms: Form-3, Form-4, and Form-11.
Key Features of Amnesty Scheme for LLPs 2023:
1. Filing Window:
The circular has ushered in a filing window from September 1, 2023, to November 30, 2023, during which LLPs can avail themselves of the relaxation. Within this period, the much-needed flexibility is extended to complete the filing of Form-3, Form-4, and Form-11, unburdened by the imposition of additional fees for delayed submission.
2. Sequential Approach:
To ensure the accuracy of the master data, a prudent approach is recommended. LLPs are advised to submit the forms in sequence, commencing with the older event dates. This meticulous procedure aids in the meticulous updating of the master data, safeguarding its precision.
3. Efficient Processing through STP:
With the exception of changes related to business activities, Form-3 and Form-4 will undergo streamlined processing utilizing the Straight Through Process (STP) methodology. This method expedites processing, enhancing efficiency in compliance procedures.
4. Prefilled Data with Edit Option:
The scheme integrates the convenience of prefilled data within the forms, which can be edited if required. However, the onus rests on the stakeholders to ensure the accuracy of the information. Any discrepancy could trigger legal action against the Designated Partner and the certifying professional, underscoring the importance of veracity in data submission.
5. Relaxation in Additional Fee Structure:
| Form | Event Dates | Small LLPs | Other LLPs |
| Form 3 &4 | From Jan 1, 2021 onwards | No extra fee | No extra fee |
| Before Jan 1, 2021 | 2x normal fee | 4x normal fee | |
| Form 11 | Financial Year 2021-22 and onwards | No extra fee | No extra fee |
| Years prior to FY 2021-22 | 2x normal fee | 4x normal fee |
6. Non-Penalization for Delayed Filing:
A notable advantage of engaging with this scheme is the assurance that LLPs utilizing it will not face penalties for late submission of Form-3, Form-4, and Form-11. This gesture demonstrates an empathetic approach towards businesses navigating challenging times.
The scheme underscores the MCA’s responsiveness and commitment to supporting businesses during challenging times. It is an embodiment of the government’s proactive approach in fostering a conducive environment for businesses to thrive, while simultaneously ensuring adherence to statutory norms.
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