The Government had noticed that large number of LLPs have defaulted in filing various forms and in complying with the statutory requirements. An additional fees of Rs.100 per day till the day default continues is payable along with the regular fee payable by the LLP for filing such defaulted forms and documents.
To lower the financial burden and considering various representations received by the stakeholders, the Ministry of Corporate Affairs (MCA), Government of India has introduced the LLP Settlement Scheme 2020. This scheme is one time window for the LLPs to condone the delay in filing the statutorily required documents with ROC.
The scheme will come into force from 16th of March 2020 and will be in force up till the 13th of June 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
– Large number of LLP representations regarding the condonation of delay, waiver of fees and also the additional LLP fees
– 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
Any “defaulting LLP” is permitted to file belated documents, which were due for filing till 31st August, 2020 in accordance with the provisions of this Scheme. i.e. Forms that are due till 31st August, 2020 only be considered for the said scheme.
“Defaulting LLP” means LLP registered under the Limited Liability Partnership Act, 2008 which has made a default in filing of documents on the due date(s) specified under the LLP Act, 2008 and rules made there under.
Scheme Applicable From: 01st April, 2020 up to 30th September, 2020
Payment of Fees and Additional Fee as per LLP Settlement Scheme-2020:
The defaulting LLPs may file form still 30th September,2020, till then No Additional fees will be charged to file forms.
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 and make the default good 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: Information with regard to limited liability partnership Initial agreement and changes, if any, made therein;
Form-4: Notice of appointment, cessation, change in name/ address/designation of a designated partner or partner and consent to become a partner/designated partner;
Form-8: Statement of Account & Solvency (Annual or Interim);
Form-11: Annual Return of Limited Liability Partnership (LLP).
This scheme shall not apply to LLPs that made an application in Form 24 to the Registrar, for striking off its name from the register as per provisions of Rule 37(1) of the LLP Rules, 2009.
On Conclusion of this scheme, Registrar will take necessary action under the LLP Act, 2008 against the LLPs which have not availed the benefit of this scheme and still not make their default good in timely manner specified.
Modified Notification of LLP Settlement Scheme 2020 As per General Circular No. 13/2020 dated 30th March, 2020.