Government to Reduce 50 Percent Penalties for Startup LLPs

Government to Reduce 50 Percent Penalties for Startup LLPs

The Central Government is likely to announce a 50 percent reduction in penalties for almost a dozen offences by startups incorporated as Limited Liability Partnership (LLPs), an official conscious of the event mentioned.

As per the source, the offences include non-compliance of requirements regarding filing statutory documents and returns, appointing a designated partner responsible for all compliances, and having at least one resident partner for the LLP.

The other offences for which the reduced penalty would apply include lapses in reporting changes in partners of an LLP, filling the vacancy of a designated partner in time, maintaining a registered office, informing the authorities about address changes, and disclosing details about the firm in its official communications.

The Ministry of Corporate Affairs (MCA) will notify the necessities for startup LLPs to avail of this benefit. One of them is that the startup must be acknowledged as one by the Department for Promotion and Internal Trade (DPIIT), source further added.


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