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MCA Introduces: LLP Amnesty Scheme for Condonation of Delay for Form-3, Form-4 and Form-11

Deepak Kumar Gupta

Corporate Law Articles

The Ministry of Corporate Affairs (MCA) has introduces the Limited Liability Partnership Amnesty Scheme i.e. LLP Amnesty Scheme. The ministry vide circular number No. 8/2023 issued on 23rd August 2023 condoning the delay in filing of Form-3, Form-4 and Form-11 under Section 67 of Limited Liability Partnership (LLP) Act, 2008 read with Section 460 of Companies Act, 2013.

Based on the representations received by the government that certain LLPs are finding difficulties in filing 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) .

Condonation of delay- Section 460 of the Companies Act

Condonation of Delay is a Scheme to provide one final opportunity to the directors of the defaulting companies who due to the reason of the non-filing of financial statements and annual returns were held liable and disqualified. Earlier while this privilege was available to companies only, with the latest notification issued by MCA this directive will be applicable to LLPs also, meaning thereby, directors of LLPs will now get the benefit of condoning the delay.

Due Date for LLP Amnesty Scheme

These forms shall be available for filing from 01.09.2023 onwards till 30.11.2023 (both dates inclusive).

Reason behind this LLP Amnesty Scheme

The LLPs availing the scheme shall not be liable for any action for delayed filing of the Form-3, Form-4 and Form-11.Form- 11 (Annual Return of LLP) for various reasons including due to mismatch the master data in electronic registry of the Ministry. Due to this, the records/data in the electronic registry are also not being updated.

Relaxation in additional fees shall be applicable LLP Amnesty Scheme

The scheme will allow those who have not filed LLP forms 3 and 4 as well as forms 8 and 11 to file the returns with an additional fee of Rs 10 a day with an overall cap of Rs 5,000. Currently, for each day of delay in filing any of these forms, the penalty is Rs 100 a day.

Salient Feature of LLP Amnesty Scheme

The Form-3 and Form-4 Will be processed under Straight Through Process (STP) mode for all purposes except for change in business activity.
At the time of filing these forms, the pre-filled data as per existing master data of the LLP shall be provided in each of above mentioned forms but the same shall have the facility to edit. The onus of filing correct data would be on the stakeholders. In case of mis-representation, the Designated Partner and the professional certifying the form may be liable for adverse action as per provisions of the law.
The filing of Form-3 and Form-4 without additional fee shall be applicable for the event dates January 01, 2021 and onwards. For events dated prior to January 01, 2021, these forms can be filed with 02 times and 04 times of normal filing fees as additional fee for small LLPs and Other than small LLPs respectively.
The filing of Form-11 without additional fee shall be applicable for the financial year 2021-22 onwards. Form-11 for previous years (prior to financial year 2021-22) can be filed with 02 times and 04 times of normal filing fee as additional fee for small LLPs and Other than small LLPs respectively.
These forms shall be available for filing from September 01, 2023 onwards till September 30, 2023 (both dates inclusive).
The LLPs availing the scheme shall not be liable for any action for delayed filing of the Form-3, Form-4 and Form-11.

Conclusion

Hence, the latest amnesty scheme provides relief to LLPs in filing form 3, form 4, and form 11. As the LLPs are facing difficulty in filing these forms, the ministry came up with an ease to them and get it updated if could not be filed at that particular time. This has been sunlight in absolute darkness for the LLPs to deal with form filling.