LLP SETTLEMENT SCHEME 2020

LLP SETTLEMENT SCHEME 2020

WHAT IS LLP SETTLEMENT SCHEME 2020?

The Department of Corporate Affairs, as part of the Government's efforts to continue simplifying business, has decided to introduce an "LLP Settlement Scheme, 2020" VIDE CIRCULAR NO. 06/2020 ON 04TH MARCH 2020 for the all defaulting LLP to file their delayed compliance with a reduced penalty as prescribed under this scheme.

WHO CAN AVAIL THIS SCHEME

Any "defaulting LLP" registered under the Limited Liability Partnership Act, 2008 is permitted to file belated documents, which were due for filing till 31st October 2019 in accordance with the provisions of this Scheme.

defaulting LLP" means an 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 thereunder;

WHICH KIND OF DELAYED COMPLIANCES CAN BE DONE UNDER THIS SCHEME

This scheme is only applicable to the following compliances

(i.) Form-3- Information with regard to the limited liability partnership agreement and changes, if any, made therein;

 (ii.) 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;

(iii.) Form-8; Statement of Account & Solvency (Annual or Interim);

(iv.) Form-11- Annual Return of Limited Liability Partnership (LLP).

WHAT WILL BE THE ADDITIONAL FEE LEVIED UNDER THIS SCHEME?

the defaulting LLPs may file forms by making payment of additional fees of ₹ 10/- per day for each day during which the default continues (instead of ₹ 100/- for each day of such delay in addition to any fee as is payable as per section 69 of Limited Liability Partnership Act, 2008) subject to a maximum of ₹ 5,000/- per Form.

WHEN DOCUMENTS CAN BE FILED?

Defaulting LLP can file documents up to September 30  2020 to avail the scheme. After this period late fee of 100/- per day will be applicable to all documents.

WHO CAN NOT AVAIL THIS SCHEME

This Scheme shall not apply to LLPs which has 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. 

  Written By

 CS. Neetu Sharma

 Associated Partner of Zumosun Soft Invention/thelegalbank