Lok Sabha Question No. 105 (STARRED), answered on 2025-07-28
Subject: LLP Law Settlement Scheme
Ministry: CORPORATE AFFAIRS
Asked by: Shri Tejasvi Surya

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

LOK SABHA STARRED QUESTION NO. 105 ANSWERED ON MONDAY, JULY 28, 2025 SRAVANA 6, 1947 (SAKA)

## LLP LAW SETTLEMENT SCHEME QUESTION

*105.SHRI TEJASVI SURYA:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) whether the Government proposes to introduce a 'Company Law and LLP  Law  Settlement  Scheme,  2025'  to  facilitate  compliance  by companies and Limited Liability Partnerships (LLPs);
- (b) the steps taken by the Government to ensure a seamless process and eliminate the issues faced by companies and LLPs in filing their pending documents and e-forms on the MCA-21 V3 portal; and
- (c) whether the Government proposes to safeguard such companies and LLPs from prosecution, penalties or additional fees for genuine delays in  filing  due  to  technical  errors  on  the  portal  and  if  so,  the  details thereof?

## ANSWER

THE MINISTER OF FINANCE & CORPORATE AFFAIRS

[SMT. NIRMALA SITARAMAN]

(a) to (c): - A statement is laid on the Table of the House

## STATEMENT  REFERRED  TO  IN  REPLY  TO  LOK  SABHA  STARRED QUESTION NO. *105 FOR ANSWER ON 28.07.2025

- (a) No Sir. At present, no such 'Company Law and LLP Law Settlement Scheme, 2025' is under consideration.
- (b) The Ministry has taken several steps from time to time to provide a seamless process for compliance for companies and LLPs, such as:
- (i) In the MCA21 V3 portal there are 79 forms which are processed on a STP (Straight through Process) or conditional STP basis, allowing acceptance  of  forms  electronically  without  human  intervention, which leads to 'ease of compliance' and 'ease of doing business' .
- (ii) The Centre for Processing Accelerated Corporate Exit (CPACE)  was  established  vide  MCA  Notification  No.  S.O.  1269(E) dated 17th March 2023 to centralize and speed up the voluntary strike off process of companies u/s 248 (2) of the Companies Act, 2013 in a fast-track mode in order to facilitate ease of exit which is  part  of 'Ease  of  Doing  Business'. Vide  notification  No  G.S.R. 475(E)  dated  5th  August  2024  the  Ministry  has  centralized  the striking off of Limited Liability Partnerships (LLPs) by empowering the  C-PACE  for  processing  of  e-  Forms  related  to  striking  off  of LLPs, as well.
- (iii) Central  Processing  Centre  (CPC)  was  established  vide  MCA Notification  No.  S.O.  S.O.  446(E)  dated  2nd  February,  2024  for centralised processing of 12 non-STP forms, namely MGT-14 (Filing of Resolutions and Agreements), SH-7 (Alteration in Capital), INC24 (Change in Name), INC-6 (Conversion of One Person Company to Private  or  Public,  or  Private  to  OPC),  INC-27  (Conversion  from Private into Public or Vice Versa), INC-20 (Revocation/surrender of licence  under  Section  8  of  the  Act),  DPT-3  (Return  of  Deposits), MSC- 1 (Application for obtaining the status of dormant company), MSC- 4 (Application for seeking status of Active Company), SH-8 (Letter of offer for Buy-Back), SH-9 (Declaration of Solvency), SH11 (Return in respect of buy-back  of securities).  CPC  was established to  ensure speedy processing of applications and forms filed  for  meeting  regulatory  requirements so that the companies are able to complete their various compliances under the corporate laws with ease.
- (iv) E-adjudication  Module  has  been  established  in  V3  w.e.f.  16 th September, 2024 to provide an end-to-end electronic adjudication
- mechanism. All activities required for adjudication including case creation, e-hearing, issuance of Show Cause Notice, order issuance and collection of Penalties are carried out online. This process  has  made  it  easier  for  Directors  and  Key  Managerial Persons  of  companies  to  attend  the  adjudication  proceeding through online VC.
- (v) V3  system  allows  web-based  form  filing,  thereby  improving  real time validation and auto pre-filling of common fields across forms. Optimization of fields in the Forms has also been carried out in V3 by removal of duplicate/redundant fields.
- (vi) Linked  forms  on  the  MCA21  V3  portal  are  designed  to  ease compliance  and  enhance  transparency  by  integrating  related filings  together,  ensuring  a  complete  disclosure  of  business information.
- (vii) Mobile App has been made available for all stakeholders to access various services offered by MCA21 website including application dashboard, notices, circular etc.

V3  has  seen  a  steady  increase  in  filing  with  the  numbers  of  filings increasing from around 67.1 lakhs in 2020-21 to around 87.7 lakhs in 2024-25.  Similarly,  more  than  2.50  lakh  companies  and  LLPs  were incorporated in FY2024-25 compared to 2.10 lakh in FY2020-21.

- (c)  (i)  MCA21  V3  system  provides  for  raising/registering  grievances through a service-related complaint ticket. This allows generation of a unique ticket number, allowing stakeholders to monitor the status of their complaint. This is a convenient tool for addressing issues related

to MCA's online services. (ii) From time to time, Government has given relief to the stakeholders with respect to levy of additional fees on account of genuine reasons. Recently,  vide  General  Circular  No.  01/2025  dated  16.06.2025,  to facilitate  smooth  roll  out  of  annual  filing  and  other  related  forms  in MCA21 V3, it was clarified that in cases where the due date of filing Forms AOC-4, AOC-4 NBFC, AOC-4 CFS, AOC-4 CFS NBFC, AOC-4 XBRL, MGT-7/MGT-7A, MGT-15, GNL-1, LEAP-1, ADT-1, ADT-3, CRA-2, CRA-4 or their their resubmission fell  between 18.06.2025 to 31.07.2025, extension up to 15.08.2025 was allowed without levy of additional fees.

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