LLP Settlement Scheme, 2020
About The Scheme
On March 3, 2020, Ministry of Corporate Affairs (MCA) introduced a scheme namely “LLP Settlement Scheme, 2020” for limited liability partnership (LLPs) by allowing a one-time condonation of delay in filing statutorily required documents with the Registrar of Office (ROC). Now to further reduce their compliance burden certain modifications in LLP Settlement Scheme As per General Circular No. 13/2020 dated 30th March, 2020 have been made in that.
Purpose or intent of LLP Settlement Scheme 2020:
The purpose of the LLP Settlement Scheme is to reduce the compliance burden on small businesses and allow all the LLP which has defaulted in the past with respect to any ROC Filing. This is an incredible amnesty scheme by MCA which allows a defaulting/inactive LLP to file all pending compliance-related returns and documents in the MCA-21 portal without any additional fee and penalty.
Benefit of the LLP Settlement Scheme 2020:
There are two major advantages of this scheme, first, it allows a window of opportunity to file all pending returns like Old Form 3, Form 4, Form 11, Form 8 i.e. comply with the legal provisions of the Limited Liability Partnership Act, 2008. Secondly, there is a complete waiver of the additional fee, which is really a very big benefit to small businesses. Apart from the two benefits the LLP and its designated partners are granted immunity from prosecution.
Let us have a quick review
| Sr No. | Particulars | Provisions |
| (A) | Scheme Applicable From | 01st April, 2020 up to 30th September,2020 |
| (B) | Scheme Applicable To: | 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. |
| (C) | 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 |
| (D) | Scheme Applicable For Following Forms Only | 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 |
| (E) | Scheme Not Applicable 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. |
| (F) | Immunity From Prosecution | The defaulting LLPs, which have filed their pending Forms till 30th September, 2020 and made good the default, shall not be subjected to prosecution by Registrar for such defaults. |
| (G) | Upon Conclusion Of Scheme | he Registrar shall take necessary action under the Limited Liability Partnership Act, 2008 against the LLPs which have not availed this Scheme and are in default in filing of documents as required under the provisions of LLP Act, 2008 in a timely manner |