LLP: Relaxation of additional fees and extension of last date of filing of Form No. LLP BEN-2 and LLP Form No. 4D
Introduction:
Recently, the MCA had taken a significant step towards enhancing transparency and compliance within the corporate sector by notifying crucial amendments regarding LLPs. In a recent development, the MCA issued notifications pertaining to the Limited Liability Partnership (Significant Beneficial Owners) Rules, 2023, and the Limited Liability Partnership (Third Amendment) Rules, 2023.
Key Amendments and Notifications:
The MCA announced the Limited Liability Partnership (Significant Beneficial Owners) Rules, 2023, through G.S.R. No. 832(E) dated 09.11.2023. These rules mandate the filing of Form LLP BEN-2 to the Registrar concerning declarations under section 90 of the Companies Act, 2013. Similarly, the Limited Liability Partnership (Third Amendment) Rules, 2023, were notified via G.S.R. No. 803(E) dated 27.10.2023. These rules introduced LLP Form No. 4D for reporting beneficial interest in contributions received by the LLP.
Transition and Compliance Promotion:
To facilitate a seamless transition and promote compliance among reporting LLPs, the MCA has extended a grace period for filing the newly introduced forms. In light of the transition of MCA-21 from V2 to V3, LLPs can file Form LLP BEN-2 and LLP Form No. 4D without incurring any additional fees until 15.05.2024. This extension provides a window for LLPs to adapt to the new filing requirements and ensure compliance with regulatory obligations.
Furthermore, to streamline the filing process and align with the transition, both Form LLP BEN-2 and LLP Form No. 4D will be made available in V3 for filing purposes starting from 15.04.2024.
Implications and Benefits:
The extended transition period offers LLPs the opportunity to familiarize themselves with the new filing requirements and ensure accurate compliance with regulatory norms. By providing a grace period without imposing additional fees, the MCA acknowledges the practical challenges associated with adapting to regulatory changes and seeks to alleviate the compliance burden on businesses.
Enhanced compliance and transparency within LLPs contribute to bolstering investor confidence and strengthening corporate governance practices. The timely filing of required forms enables authorities to effectively monitor beneficial ownership structures and mitigate the risks associated with opaque ownership arrangements.
Conclusion:
The MCA’s notification of amendments to LLP rules, coupled with the extension of the transition period, marks a significant stride towards fostering a culture of compliance and transparency within the corporate landscape. By providing adequate time and resources for LLPs to adapt to regulatory changes, the MCA demonstrates its commitment to facilitating a conducive environment for business growth while upholding robust governance standards.
As businesses navigate the evolving regulatory landscape, adherence to compliance requirements remains paramount. The extended transition period offers a valuable opportunity for LLPs to recalibrate their reporting mechanisms and reinforce their commitment to regulatory compliance, ultimately contributing to the overall integrity and resilience of the corporate ecosystem.
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Disclaimer: The author is based in Jabalpur and is a Practicing Company Secretary dealing in Corporate, Legal & Taxation services. The information contained in this write up, as provided by the author, is to provide a general guidance to the intended user. The information should not be used as a substitute for specific consultations. Author recommends that professional advice is sought before taking any action on specific issues.
The author can also be reached at cstanveersaluja@gmail.com.
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