ring
LLP-Settlement-Scheme-2020

LLP Settlement Scheme 2020

LLP Settlement Scheme 2020

The Ministry of Corporate Affairs, Government of India has introduced the LLP Settlement Scheme 2020. The scheme is set to give defaulting LLPs a one-time relaxation in paying the condonation fees for the delayed filing of documents. The scheme will come into force from 16th of March 2020 and will be in force up till the 13th of June 2020. This article deals with the details of the LLP Settlement Scheme 2020.

Reasons for the Scheme

The initiation of the LLP settlement scheme is for certain reasons and following are the reasons:

  • Many of the LLP have been at default for filing the documents. Such LLP was charged with a fine amount of Rs.100 per day along with the additional fee for delayed filing of the document
  • The pleas from a large number of LLP representations regarding the condonation of delay, waiver of fees and also the additional LLP
  • The LLP and their designated partners become liable for criminal prosecution if the LLP fails to file the document. For such defaults, the LLP cannot close until the completion of all its compliances

Applicability

A defaulting LLP which is registered under the Limited Liability Partnership Act, 2008 is applicable for the scheme. But such an LLP is applicable only if it has made any default in filing the documents. The filing of the documents due upto 31st of October, 2019 is eligible.

Manner of Payment of Fees

The LLP which is at default for not filing their documents is subject to pay a certain amount as fine. While filing the documents, the LLP has to pay Rs.10 for each delayed date upto Rs.5,000 per document.

Immunity from Prosecution

There is a prosecution by the Registrar if any of default LLP has not filed the documents. LLPs which files documents within 13th of June 2020 under the scheme will escape prosecution.

Filing of Documents

The scheme is applicable only for filing the following delayed documents from the LLP Act:

  • Form-3 which relates to the Information regarding the LLP agreement and its changes.
  • Form-4 which relates to the notice of cessation, appointment, changes in name, address, consent to become a partner or designated partner and designation of a partner or designated partner.
  • Form-8 which relates to the Statement of Account and Solvency either annual or interim.
  • Form-11 which relates to the filing of annual return of the LLP.

Non-Applicability

If an LLP has made an application for strike-off to the Registrar, then it is not applicable under this scheme.

The notification for the LLP settlement scheme 2020 is below for reference:

PIB1605084

Other Related Guides

LLP Registration Requirements LLP Registration Requirements Limited Liability Partnership (LLP) is a type of legal entity that was introduced in the year 2010 as a hybrid between ...
Admission or Resignation of Partner in LLP Admission or Resignation of Partner in LLP In a Limited Liability Partnership (LLP), Partners can be admitted or removed easily without any changes t...
2018 LLP Registration Process 2018 LLP Registration Process The second half of 2018 saw the successful initiation of Ease of Doing Business (EoDB) reforms that changed the game by...
LLP vs Partnership Firm LLP vs Partnership Firm LLP was introduced in the year 2010 in India to provide Entrepreneurs with an alternative to Partnership Firms. The purpose o...
LLP Annual Filing LLP Annual Filing and Audit Requirement Compared to a Private Limited Company, LLPs have minimal annual filing and accounts maintenance requirements....

Post by Femi Jebrina

Femi Jebrina is an avid reader and passionate writer. She is an efficient writer of the regulatory articles and has a good knowledge on the language.

User

Hi there,

Online We are available online!