India’s LLP Amnesty Scheme 2023: September 1 to November 30
The Ministry of Corporate Affairs (MCA) has recently announced the LLP Amnesty Scheme 2023, offering Limited Liability Partnerships (LLPs) relief from delays in filing Form 3, Form 4, and Form 11. Running from September 1 to November 30, 2023, the scheme features a sequential filing approach, efficient Straight Through Process (STP) methodology, and relaxed fee structures. LLPs won’t face penalties for late submissions, reflecting the MCA’s commitment to supporting businesses in challenging times.
The Ministry of Corporate Affairs (MCA) has initiated an amnesty scheme aimed at enhancing the ease of doing business for Limited Liability Partnerships (LLPs). This scheme, detailed in General Circular No 08/2023 dated August 23, 2023, is a direct response to the difficulties LLPs encounter as a result of technical issues and discrepancies in master data.
The LLP amnesty scheme is designed to tackle the hurdles encountered by the LLPs in meeting the deadlines for filing Form 3, Form 4, and Form 11.
Running from September 1 to November 30, 2023, the scheme features a sequential filing approach, efficient Straight Through Process (STP) methodology, and relaxed fee structures. Its primary aim is to grant eligible LLPs a reprieve for delayed submissions and streamline the filing procedures.
Key features of the Amnesty Scheme for LLPs in 2023
- Filing window: The circular has established a filing window from September 1, 2023, to November 30, 2023. During this period, LLPs can complete the filing of Form 3, Form 4, and Form 11 without incurring additional fees for delays.
- Sequential approach: To ensure data accuracy, a recommended approach involves submitting forms in sequence, starting with older event dates. 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.
- Efficient processing via STP methodology: Except for changes related to business activities, Form 3 and Form 4 will undergo streamlined processing using the STP methodology, expediting compliance procedures.
- Pre-filled data with edit option: The scheme provides pre-filled data within the forms, which can be edited if necessary. Accuracy is paramount, as discrepancies could lead to legal action against the Designated Partner and the certifying professional. To address missing data, the user can utilize the “Additional” option within File 19 of LLP Form 3. For the filing of initial agreements, the user can contact the MCA help desk or submit a ticket for assistance.
- Relaxation in additional fee structure: The fee structure is relaxed as follows:
- Forms 3 and 4 for events from January 1, 2021 onwards: There is no extra fee for small LLPs or other LLPs.
- Forms 3 and 4 for events before Jan 1, 2021: Two times the normal fee for small LLPs, four times the normal fee for other LLPs.
- Form 11 for FY 2021-22 and onwards: There is no extra fee for small LLPs or other LLPs.
- Form 11 for years prior to FY 2021-22: Two times the normal fee for small LLPs, four times the normal fee for other LLPs.
- Non-penalization for delayed filing: LLPs using this scheme will not face penalties for late submission of Form 3, Form 4, and Form 11. This underscores the MCA’s supportive approach to businesses during challenging times.
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