MCA has announced to relax the additional fees and has extended the last date for filing of LLP Forms BEN-2 and 4D up to 15/05/2024, vide General Circular 1/2024.
MCA General Circular 1/2024 dated 07/02/2024: Relaxation of additional fees and extension of last date of filing of Form LLP BEN-2 and 4D upto 15/05/2024
Background Information:
i) The MCA previously introduced the Limited Liability Partnership (Significant Beneficial Owners) Rules, 2023, through GSR 832(E) dated 09.11.2023.
ii) These rules mandated the filing of E-form LLP BEN-2 for declaring significant beneficial ownership under section 90 of the Companies Act, 2013.
iii) Similarly, the MCA also enacted the Limited Liability Partnership (Third Amendment) Rules, 2023, via GSR 803(E) dated 27.10.2023.
iii) These rules introduced the requirement of filing E-form LLP Form 4D for declaring beneficial interest in contributions received by the LLP.
Reason for Relaxation:
i) The relaxation of additional fees and extension of the filing deadline is attributed to the transition of MCA-21 from version-2 to version-3.
ii) The objective is to encourage compliance among reporting Limited Liability Partnerships.
Specific Relaxation Measures:
i) LLPs can now file Form LLP BEN-2 and 4D without incurring any additional fees until 15.05.2024.
ii) This grace period aims to facilitate smooth compliance during the transition period.
iii) The two forms will be available in version-3 for filing purposes starting from 15.04.2024.
Impact and Implications:
i) The relaxation and extension offer relief to LLPs, allowing them more time to fulfill their filing obligations.
ii) It mitigates the burden of additional fees, which could be particularly beneficial for smaller LLPs or those facing financial constraints.
iii) The transition to version-3 of MCA-21 indicates technological advancements or updates, emphasizing the need for smooth migration without disruptions to compliance activities.
Compliance Recommendations:
i) LLPs are advised to take advantage of the extended deadline and file the required forms within the stipulated timeframe.
ii) It’s crucial for LLPs to ensure accurate and complete filing to comply with regulatory requirements and avoid potential penalties or legal consequences.
iii) Keeping abreast of updates and changes in MCA regulations and filing procedures is essential for maintaining regulatory compliance.
Conclusion:
MCA’s announcement of relaxation measures and deadline extension for filing LLP Forms BEN-2 and 4D underscores its commitment to facilitating compliance while accommodating technological transitions. LLPs should utilize the provided grace period effectively to fulfill their regulatory obligations accurately and in a timely manner, thereby ensuring smooth operations and compliance with applicable laws and regulations.