The Ministry of Corporate Affairs (MCA) has launched an amnesty scheme to bolster ease of business for Limited Liability Partnerships (LLPs). The scheme, outlined in General Circular No 08/2023 Dated: 23rd August 2023, is a response to the challenges faced by LLPs due to technical glitches and mismatches in master data. This article presents a comprehensive analysis of this amnesty scheme.
Q1: Which forms does this amnesty Scheme cover?
A1: The amnesty scheme introduced by the MCA is specific to LLPs and excludes companies. The three forms that are prioritized in this scheme include:
However, one significant omission is the exclusion of Form LLP 8, which has raised concerns given its relevance and the issues faced during its submission.
Q2: Are Form 3 and Form 4 processed as STP mode?
A2: According to point no. 3 of the circular, Forms 3 and 4 under this scheme shall be processed through STP Mode, except for specific instances mentioned.
If Form LLP 3 involves a change in business activity and option 17 is selected (alone or with others), it will be approved as NON-STP mode.
Q3: Does the sequence of form filing matter?
A3: According to the Para 3 of the circular, it’s imperative to maintain a sequence in filing, especially when dealing with multiple submissions of LLP 3 or LLP 4.
For multiple LLP 3 or LLP 4 submissions, ensure to file the “Old Event Date Form” first and follow the sequence for accurate master data updating.
Q4: How to file these forms if Master Data is incorrect?
A4: For changes in agreements, use pre-filled data based on existing master data, which is editable. For missing data, use Additional option in File No. 19 of LLP Form 3. For initial agreement filing, contact MCA help desk or raise a ticket.
Alternate option: File initial agreement with pre-filled data, then correct master data with subsequent LLP 3 for change in agreement.
Q5: What’s the period for LLP 3 and LLP 4 filing without additional fees?
A5: Forms LLP 3 and LLP 4 with due dates on or after 01.01.2021 can be filed without additional fees. Those with due dates on or before 31.12.2020 incur additional fees.
2 times additional fees for Small LLP 4 times additional fees for Others
Q6: What’s the period for LLP 11 filing without additional fees?
A6: Form LLP 11 for the financial year 2021–22 and onwards can be filed without additional fees. Forms LLP 11 for prior financial years need additional fees.
2 times additional fees for Small LLP 4 times additional fees for Others.
Q7: What’s the time frame for the scheme?
A7: Forms can be filed under this scheme from 01.09.2023 to 30.11.2023. After 30.11.2023, additional fees apply as per the LLP Act, 2008.
Q8: Can LLP 3 be filed again with the same event date?
A8: Form LLP 3 can be filed again with the identical event date, allowing corrections in Master Data if needed.
Q9: Is Form LLP 11 editable?
A9: All pre-filled fields in the Excel format of Form LLP 11 are editable, facilitating additions or deletions as per requirements.
Conclusion: The amnesty scheme introduced by the MCA is a commendable initiative to address the challenges faced by LLPs in form submissions. However, the exclusion of Form LLP 8 from the scheme is perplexing. This article, thus, emphasizes the need for the MCA to reconsider the inclusion of LLP 8, ensuring a more comprehensive amnesty scheme for LLPs.
Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at email@example.com).