One-time Relaxation in Additional Fees for Delayed Filing of LLP Forms

The Ministry of Corporate Affairs (MCA) has announced a significant development for Limited Liability Partnerships (LLPs) facing difficulties in filing Form-3, Form-4, and Form-11 under Section 67 of the Limited Liability Partnership Act, 2008, read with Section 460 of the Companies Act, 2013. The government has introduced a one-time relaxation in additional fees for those LLPs that could not file the forms within the due date for various reasons, including due to mismatch in the master data in electronic registry of the Ministry.

Key Points for Relaxation in Additional Fees

Following are the key points to be noted for the relaxation in additional fees for delayed filing of LLP Forms:

1. Forms Processed Under Straight Through Process (STP) mode: The Form-3 and Form-4 will be processed under STP mode for all purposes except change in business. The pre-filled data as per existing master data of the LLP shall be provided in each of the aforementioned forms, but the same shall have the facility to edit. The stakeholders will be responsible for filing correct data, and in case of misrepresentation, the Designated Partner and the professional certifying the form may be liable for adverse action as per provisions of the law.
2. Applicable Filing Fees: The filing of Form-3 and Form-4 without additional fees is applicable for the event dates 01.01.2021 and onwards. For events dated before 01.01.2021, these forms can be filed with 02 times and 04 times of normal filing fees as additional fees for small LLPs and other than small LLPs, respectively. The filing of Form-11 without additional fees is applicable for the financial year 2021-22 onwards. Form-11 for previous years (prior to the financial year 2021-22) can be filed with 02 times and 04 times of normal filing fees as additional fees for small LLPs and other than small LLPs, respectively.
3. Timeline for Filing: These forms shall be available for filing from 01.09.2023 onwards till 30.11.2023 (both dates inclusive).
4. Non-liability for Delayed Filing: The LLPs availing of the relaxation shall not be liable for any action for delayed filing of the Form-3, Form-4, and Form-11.

Objective of the Relaxation in Fees

The relaxation in additional fees is a significant development that aims to provide relief to LLPs facing difficulties in filing the forms within the due date. The government understands the importance of providing ease of doing business and has taken this step towards promoting it. The one-time relaxation in additional fees is an opportunity for LLPs to update their filings and details in Master-data for future compliances.

Conclusion

The one-time relaxation in additional fees for delayed filing of Form-3, Form-4, and Form-11 by LLPs from the MCA is a welcome step towards easing the regulatory burden on business entities. LLPs facing difficulties in filing the forms within the due date, for various reasons, can now take advantage of the relaxation and comply with regulatory requirements without having to pay additional fees. The government’s initiative can significantly benefit LLPs by helping them avoid penalties and ensure the seamless continuation of their business operations.