MCA General Circular on Limited Liability Partnerships

This update discusses the latest regulatory developments concerning Limited Liability Partnerships (LLPs) brought forth by the Ministry of Corporate Affairs. These updates aim to enhance transparency, streamline compliance procedures, and foster a business-friendly environment for LLPs.

 The Ministry introduced the Limited Liability Partnership (Significant Beneficial Owners) Rules, 2023, and the Limited Liability Partnership (Third Amendment) Rules, 2023. These rules necessitate the submission of E-forms LLP BEN-2 and LLP Form No. 4D to declare significant beneficial owners and beneficial interest in contributions received by the LLP, respectively.

In light of the MCA-21 transition and to promote compliance, LLPs can now file LLP BEN-2 and LLP Form No. 4D without additional fees until July 1, 2024. This extension aims to facilitate smooth compliance adherence for LLPs.

These measures highlight the Ministry’s commitment to fostering transparency and accountability within LLPs. By extending deadlines and waiving fees, the Ministry aims to ease compliance burdens while upholding regulatory standards.

In essence, these updates streamline compliance processes and reinforce the importance of adherence to regulatory requirements.