Announced through the General Circular No. 08/2023 dated August 23, 2023, the Ministry of Corporate Affairs (MCA) has introduced the Limited Liability Partnership (LLP) Amnesty Scheme. Designed to offer relief, this scheme grants a waiver for delays in filing Form-3, Form-4, and Form-11 under section 67 of the Limited Liability Partnership Act, 2008, in conjunction with section 460 of the Companies Act, 2013. The scheme will be in effect from September 1, 2023, to September 30, 2023.
Recognizing the challenges faced by certain LLPs, including issues related to Form-3 (LLP Agreement and changes), Form-4 (Notices of appointments, cessations, and changes in details of partners or designated partners), and Form-11 (Annual Return of LLP), the government has received representations. These complications often stem from discrepancies in the electronic registry’s master data, resulting in outdated records.
To alleviate these concerns and in line with the government’s commitment to facilitating business operations, the Ministry, under the authority of section 67 of the Limited Liability Partnership Act, 2008, has decided to extend a one-time relaxation of additional fees. This applies to LLPs unable to submit Form-3, Form-4, and Form-11 within their due dates. This initiative aims to grant these LLPs the chance to update their filings and master data for future compliance.
Key features of this scheme include:
- Streamlined Processing: Form-3 and Form-4 will undergo processing via the Straight Through Process (STP) mode, except in cases of changes in business activities. It is recommended that stakeholders submit these forms sequentially, focusing on older event dates first to ensure accurate master data updates.
- Pre-Filled Data with Editing: During form submission, pre-filled data from the existing master data of the LLP will be provided in Form-3 and Form-4. However, this data can be edited as needed. Stakeholders hold the responsibility for accurate data submission, with potential liability for misrepresentation falling on both the Designated Partner and the certifying professional, in accordance with legal provisions.
- Fee Waiver and Applicability: No additional fee will be charged for filing Form-3 and Form-4 for event dates starting from January 01, 2021. For events predating this, additional fees of two times and four times the regular filing fees apply for small LLPs and Other than small LLPs, respectively. Similarly, no extra fee is required for Form-11 filing for the financial year 2021-22 onwards. However, Form-11 submissions for prior years can be made with additional fees of two times and four times the regular filing fee for small LLPs and Other than small LLPs, respectively.
- Filing Period: The opportunity to file these forms without additional fees will be available from September 01, 2023, to September 30, 2023, inclusive of both dates.
- Liability Protection: LLPs availing of this scheme will be safeguarded against actions arising from delayed filing of Form-3, Form-4, and Form-11.
For more detailed information, you can refer to the official General Circular at this link: MCA General Circular.