The Ministry of Corporate Affairs (MCA) has issued a circular (MCA General Circular 08/2023 dated August 23, 2023) to condone the delay in filing of certain LLP forms.
The following forms are covered under the condonation scheme:
- Form 3: LLP Agreement and changes therein
- Form 4: Notice of appointment, cessation, change in name/ address/designation of a designated partner or partner and consent to become a partner/designated partner
- Form 11: Annual Return of LLP
The condonation scheme is applicable to LLPs that have not filed the above forms within the due date. The due date for filing Form 3 is within 30 days of the date of incorporation of the LLP, the due date for filing Form 4 is within 30 days of the occurrence of the event, and the due date for filing Form 11 is within 30 days of the end of the financial year of the LLP.
Under the condonation scheme, LLPs can file the above forms with the MCA up to November 30, 2023 without paying any late fees. However, LLPs will still be liable to pay any penalties that may be imposed by the MCA.
To avail of the condonation scheme, LLPs must submit an application to the MCA in Form 12A. The application must be accompanied by the relevant form(s) that have not been filed within the due date.
The condonation scheme is a welcome move by the MCA. It will help LLPs to regularize their compliance without having to pay any late fees.
Here are some of the key points of the condonation scheme:
- The scheme is applicable to LLPs that have not filed Form 3, Form 4 or Form 11 within the due date.
- LLPs can file the relevant forms with the MCA up to November 30, 2023 without paying any late fees.
- LLPs will still be liable to pay any penalties that may be imposed by the MCA.
- To avail of the scheme, LLPs must submit an application to the MCA in Form 12A.
The condonation scheme is a good opportunity for LLPs to regularize their compliance. LLPs should take advantage of this scheme and file the relevant forms with the MCA as soon as possible.
Detailed Features of MCA Circular 08/2023
- Straight Through Process (STP):
- Concept: The STP mode refers to a simplified processing approach that minimizes manual interventions.
- Impliaction: Form-3 and Form-4 processing will be sped up, however adjustments to business operations are not included in this mode.
- Recommendation: Stakeholders should order submission according to the dates of the events, making sure that more recent occurrences are filed first.
- Master Data Pre-filled Forms:
- Concept: The idea is to pre-populate forms with master data that already exists.
- Implication: The need to ensuring data accuracy is placed in opposition to the conveniences of pre-filled forms.
- Warning: Providing false or misleading information may result in legal action being taken against the Designated Partner and the certifying professional.
- Fee Structures and Exemptions
- Dates to Remember: There is no cost for forms submitted for activities occurring after January 1, 2021. There will be additional charges for earlier dates.
- Size Matters: The price structure differs based on the size of the LLP, with various fees for different LLP sizes.
- Filing Window:
- Dates: From September 1 to November 30, 2023.
- Implication: Because of the short window, LLPs must be proactive in creating and filing their paperwork.
- Legal Protection from Penalties:
- Concept: The circular provides defense against judicial sanctions for late filings.
- Implication: LLPs that follow this directive won’t face consequences for earlier submitting delays.
Conclusion
The MCA has adopted a sophisticated strategy in General Circular No. 08/2023, striking a balance between regulatory oversight and sympathetic relief for LLPs. This program demonstrates the government’s dedication to assisting businesses while upholding compliance. LLPs must make the most of this opportunity to address historical inconsistencies and realign with regulatory standards.
LLP Registration in Dwarka Delhi
Chartered Accountant in Dwarka Delhi