The MCA has for Limited Liability Partnerships (LLPs) introduced a Condonation of Delay scheme through Circular No. 08/2023 (“Circular“) dated 23rd August 2023
Below is the summary of key points from the Circular
1. Waiver of additional fees:
(A) Late Filing Fees Waiver for Changes Made on or After 1st January 2021:
LLPs making changes to their information using Form 3 and Form 4 on or after 1st January 2021 will have the late filing fees waived. This suggests that any changes made from this date onwards will not incur any late filing penalties.
(B) Reduced Late Filing Fees for Changes Before 1st January 2021:
For Small LLPs
If changes were made prior to 1st January 2021, the late filing fees have been reduced. Instead of the previous 25 times the normal fees, the new late filing fee is now 2 times the normal fees.
For Other Than Small LLPs
Similarly, for LLPs that are not considered small, the late filing fees for changes made before 1st January 2021 have been reduced from and 50 times the normal fees to 4 times the normal fees.
2. Approval
Changes made through Form 3 and Form 4 that do not involve a change in the business activity of the LLP will be processed under the “Straight Through Process.” i.e. changes will undergo a automated processing and they will likely be quickly and automatically approved by the system without manual intervention or the need for additional information or clarifications.
If a change in business activity of the LLP is involved and Form 3 is filed for such changes, it will be processed under the “Approval Route” i.e. additional information or clarifications may be required.
3. Operational Ease
While the data in Form 3, Form 4 and Form 11 will be pre-filled, stakeholders (those filling out the forms) will have the option to edit the pre-filled information if necessary. This allows them to review the automatically populated data, make any necessary changes or corrections, and ensure that the information provided is accurate and up-to-date.
4. Validity of the Scheme:
This condonation of delay scheme is valid from 1st September 2023 to 30th November 2023, further the new forms will be available on MCA portal for filing from 1st September 2023 onwards
For further details access the Circular here
“The scheme ensures that LLPs that avail this opportunity will not be subject to any negative consequences or punitive actions as a result of the delayed filings of these specific forms”
— Kinnaree Acharya
