India to launch an automated compliance system for limited liability partnerships

The Indian government is set to implement a new compliance oversight regime for limited liability partnerships (LLPs), with over 260,000 active LLPs to receive auto-generated alerts and emails for default and missed deadlines. The corporate affairs ministry has completed a successful pilot of the IT-heavy architecture designed to streamline compliance management for LLPs, and the system is expected to be rolled out later this year. The new system will be part of a major revamp of the administration of the Companies Act and LLP Act, and the IT infrastructure is expected to transform the governance and compliance of Indian companies. The LLP compliance module of the MCA21 portal will send alerts to Registrars of Companies (RoCs) to follow up and issue orders based on the auto-generated notices. The deployment of the new system will not interfere with the ongoing transition of how companies have to file various forms and reports. The move towards a tech-driven oversight of LLPs is expected to be a game changer in regulation, with the automated system making businesses more cautious about their statutory obligations and professionals more aware of their duty.