Introduction: The Ministry of Corporate Affairs (MCA) has introduced a significant relief measure, the LLP Amnesty Scheme, through its General Circular No. 08/2023 dated 23rd August, 2023. This scheme is designed to address the challenges faced by Limited Liability Partnerships (LLPs) in timely filing of form-3, form-4, and form-11. The scheme’s objective is to provide condonation of delay for eligible LLPs and simplify the filing process.
Features of the LLP Amnesty Scheme:
The LLP Amnesty Scheme comes with several features aimed at easing the compliance burden for LLPs and promoting timely filings:
- STP Processing for Form-3 & Form-4: Under the scheme, form-3 and form-4 submissions will be processed under Straight Through Processing (STP), except for cases involving changes in business activities.
- Sequential Filing Requirement: Forms must be filed sequentially, aligning with their respective event dates. This sequential order emphasizes a structured approach to filing.
- Editable Pre-Filled Data: The forms will include pre-filled data based on the existing master data. Stakeholders are responsible for ensuring the accuracy of this data during the filing process.
- Fee Exemption for Form-3 & Form-4 (After 01.01.2021): For event dates from 01.01.2021 onwards, filing form-3 and form-4 without additional fees will be permitted. However, for event dates prior to this, small LLPs and other than small LLPs can file these forms with 2 times or 4 times the normal fees as additional fees, respectively.
- Form-11 Fee Exemption (F.Y. 2021-22 Onwards): Similar to form-3 and form-4, form-11 can be filed without additional fees for Financial Year 2021-22 and onwards. For preceding years, additional fees of 2 times or 4 times the normal fees will apply for small LLPs and other than small LLPs, respectively.
- Scheme Timeline and Exemption from Action: The LLP Amnesty Scheme will be effective from September 2023 to November 30, 2023 (inclusive of both dates). During this period, LLPs will not face any action for delayed filing of form-3, form-4, and form-11.
Conclusion: The introduction of the LLP Amnesty Scheme by the Ministry of Corporate Affairs marks a significant step towards easing compliance for LLPs. By offering condonation of delay and simplifying the filing process for form-3, form-4, and form-11, the scheme aims to enhance the ease of doing business and promote timely regulatory adherence. LLPs now have the opportunity to rectify past delays and ensure accurate filings, contributing to a more transparent and compliant corporate ecosystem.
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