The Corporate Affairs Ministry (MCA) is offering an amnesty programme for non-compliant Limited Liability Partnerships (LLPs) to update critical statutory forms without extra fees for late submissions.
This opportunity is valid until November 2023 for events from January 1, 2021. Revised Form-3 and Form-4 can be filed from September 1 to November 30, MCA has said.
LLPs provide a unique blend of corporate benefits and partnership flexibility, limiting partners’ liability to their initial contributions.
With over 2.5 lakh registered LLPs, the MCA aims to simplify the filing process for Form 3 (for submitting info on changes in LLP agreement) and Form 4 (notice of addition of deletion of partners).
These amended forms will now undergo a streamlined processing mode (straight through processing) except for business activity changes.
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This initiative follows issues faced by LLPs with the previous MCA21 version 3.0 forms, prompting the MCA to offer this fee-waiver scheme until November end.
Essentially, a LLP combines corporate advantages with internal governance governed by the LLP Agreement, not statutory provisions.
Sanjeev Kumar, Partner, Luthra and Luthra Law Offices India, said MCA seems to have amended LLP Form 4 to bring the same in line with LLP Form 3, which was significantly amended earlier this year.
The compliance requirement/details sought under LLP Form no 4 has now been eased, he added.
Vidisha Krishan, Partner, MV Kini, a law firm, said “Though these are not major structural changes, they do impose enhanced filing requirements which will streamline potential disputes wherein documentary evidence of changes in designation appointments, resignations etc. are material”.