CG Introduces “LLP Settlement Scheme, 2020” for Defaulting LLPs

The Central Government (CG) has introduced a scheme namely “LLP Settlement Scheme, 2020”, by allowing a One-time condonation of delay in filing statutorily required documents with the Registrar. This scheme is introduced by the government to promote ease of doing business as it received a large number of representations by various LLP’s for waiver of fee and relaxations in additional fee on non-filing of statutory documents.

 SUMMARY OF THE SCHEME

• Applicability: The Scheme is available from 16 March,2020 to 13 June,2020. Under the scheme, any defaulting LLP is permitted to file following documents if they were due for filing till 31 October 2019:
  1. Form-3– Information with regard to limited liability partnership agreement and any changes therein.
  2. Form-4– Notice of appointment, cessation, change in name/address/ designation of a designated partner and consent to become a partner/ designated partner.
  3. Form-8– Statement of Account & Solvency (Annual or Interim)
  4. Form-11– Annual Return of Limited Liability Partnership (LLP)
•  Scheme not available: The Scheme cannot be availed in following cases:
  1. For filing forms other than those mentioned above
  2. Where the LLP has made an application to the registrar for striking off its name

• Manner of availing the scheme: The LLP can themselves avail the Scheme by making payment of additional fees of Rs10  for each day during which the default continues (instead of Rs100 for each day of such delay as is payable as per section 69 of LLP Act, 2008) subject to a maximum of  Rs5,000 per Form.
• Immunity from prosecution: LLPs, which have filed their pending documents till 13th June 2020 and made good the default, shall not be subjected to prosecution by Registrar for such default.

Source: MCA Circular No. 6/2020