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
Defaulting LLP: 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 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).
- Form-15: Notice for change of place of registered office.
- Form-5: Notice for Change of Name.
- Form-12: Form for intimating other address for Service of Documents.
- Form-22: Notice of intimation of Order of Court/ Tribunal/CLB/ Central Government to the Registrar
- Form-31: Application for Compounding of an offence.
- Form-23: Application for direction to Limited Liability Partnership (LLP) to change its name to the Registrar.
- Form-29 : Notice of (A) alteration in the certificate of incorporation or registration; (B) alteration in names and addresses of any of the persons authorized to accept service on behalf of a foreign limited liability partnership (FLLP) (C) alteration in the principal place of business in India of FLLP (D) cessation to have a place of business in India
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.
Modified Notification of LLP Settlement Scheme 2020 As per General Circular No. 13/2020 dated 30th March, 2020.