MCA Introduces Condonation Scheme for Delay in Filing LLP Forms (3, 4, 11)
The Ministry of Corporate Affairs (MCA), India, recently released General Circular No.08/2023, which addresses concerns related to the filing of specific forms under the Limited Liability Partnership Act, 2008. This circular is of utmost importance to LLPs and stakeholders who have faced challenges in updating their records due to various reasons. Let’s delve into the details and understand its implications.
Background
The MCA received representations from several LLPs highlighting difficulties in filing Form-3, Form-4, and Form-11. The primary reason cited was a mismatch in the master data in the electronic registry of the Ministry, which prevented the updating of records/data.
For Any Query
The Ministry’s Response
To promote ease of doing business and address the concerns of LLPs, the Ministry has decided to grant a one-time relaxation in additional fees for those LLPs who missed the deadline for filing the aforementioned forms. This move will allow LLPs to update their filings and details in Master-data for future compliances.
Key Features of Condonation Scheme or Delay in Filing of LLP Forms
- Straight Through Process (STP) Mode: Form-3 and Form-4 will now be processed under the STP mode for all purposes, except for changes in business activities. Stakeholders are advised to file these forms sequentially, starting with older events.
- Editing Facility: While filing these forms, pre-filled data as per the existing master data of the LLP will be provided. However, stakeholders will have the facility to edit this data. It’s crucial to note that the responsibility of filing accurate data lies with the stakeholders. Misrepresentation could lead to adverse actions against the Designated Partner and the professional certifying the form.
- Fee Relaxations: The filing of Form-3 and Form-4 without additional fees will be applicable for events dated 01.01.2021 and onwards. For events before this date, additional fees will be charged based on the size of the LLP. Similarly, Form-11 can be filed without additional fees for the financial year 2021-22 onwards. For previous years, additional fees will apply.
- Filing Window: These forms will be available for filing from 01.09.2023 to 30.11.2023.
- No Penalties: LLPs availing this scheme will not face any penalties for delayed filing of Form-3, Form-4, and Form-11.
For Any Query
Summary of LLP Condonation Scheme
The MCA’s recent circular is a welcome move for LLPs that have faced challenges in updating their records. By offering a one-time relaxation in fees and providing a clear window for filing, the Ministry is ensuring that businesses can operate smoothly and efficiently. It’s essential for stakeholders to take note of these changes and ensure timely compliance.
Disclaimer
The materials provided herein are solely for educational and informational purposes. No attorney/professional-client relationship is created when you access or use the site or the materials. The information presented on this site does not constitute legal or professional advice and should not be relied upon for such purposes or used as a substitute for professional or legal advice.
