Decriminalization of Offences

• Minor and procedural lapses by LLPs are now treated as civil defaults

• Penalties replaced imprisonment in many sections under LLP Act

• Helps reduce fear of harsh punishment for non-serious violations

• Encourages ease of doing business and compliance participation

• ROC can now impose fines without going to court

Introduction of Small LLPs

• Amendment introduced the concept of “Small LLP”

• LLPs with contribution up to ₹25 lakh and turnover up to ₹40 lakh qualify

• Small LLPs enjoy lower filing fees and reduced penalties

• Aim is to support startups and small service providers

• Threshold limits may be revised by government notification

Compounding of Offences

• LLPs can now apply for compounding of specific offences

• Enables settlement by paying prescribed fine without litigation

• Regional Director has power to approve compounding requests

• Avoids prolonged legal process in case of first-time defaults

• Ensures faster resolution and restoration of compliance status

Special Courts and Speedy Trials

• Establishment of special courts for LLP-related offences introduced

• Aimed to reduce pendency and fast-track regulatory matters

• Courts can try LLP offences summarily under the Act

• Brings LLPs under same efficiency model as companies

• Enhances judicial capacity for corporate law enforcement

Enhanced Digital Compliance

• Amendment supports digital processes for filings and inspections

• Strengthens MCA’s V3 portal integration with LLP filings

• Pushes for simplified e-governance for LLP compliance lifecycle

• Encourages online interaction with ROC and authorities

• Promotes transparency and speed in LLP administration