LLP settlement Scheme, 2020 – A breather for non-filers and late filers of MCA LLP Forms

Ease of Doing Business

Providing ease in doing business has always been on the agenda of the Government of India. And for this purpose the government has always tried to introduce new schemes from time to time to encourage the business owners to stick to business. To take this step ahead, The ministry of corporate affairs (MCA) has launched a one-time amnesty scheme for Limited Liability Partnership (LLP) companies that have failed to file the requisite statutory documents such as annual statements, change in directors, etc.

The move will not only promote the ease of doing business but also will cleanse the system. it provides these companies a one-time relaxation in payment of additional fees and immunity from prosecution.

Accordingly, the Central Government has decided to introduce a scheme namely “LLP Settlement Scheme, 2020”, by allowing a One-time condonation of delay in late filing statutorily required documents of LLP with the Registrar.

Find out: the Revised LLP settlement Scheme, 2020 and Companies Fresh Settlement Scheme, 2020

The LLP Settlement scheme, 2020 applies to the filing of the Following documents only:

• Form 3: Information with regard to the limited liability partnership 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.
• LLP Form 8: Statement of Account & Solvency (Annual or Interim).
• LLP Form 11: Annual Return of Limited Liability Partnership (LLP).

The Important Points of LLP settlement Scheme, 2020:

• Time Limit: The scheme will be in force from 16-03-2020 to 13-06-2020.
• One-time Scheme: It would permit a “one-time condonation of delay in Late filing statutorily required documents of LLP” with the Registrar of Companies.
• Additional Fees: The LLP concerned has to pay a nominal additional fee of Rs 10 per day for the period of delay as well as any actual fee that is to be paid for submitting the document. The additional fee per document would be capped at Rs 5,000.
• Applicability: The scheme is applicable for defaulting LLP who has not filed returns that were due for filing till 31st Oct 2019
• Last date for filings: The defaulting 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 defaults.
• Non- applicability to Striking Off LLPs: This Scheme shall not apply to LLPs which have 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. 
• Conclusion of the Scheme: On the conclusion of the Scheme, the Registrar shall take necessary action under the LLP 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.

Know: The important Statutory due dates for LLP Annual filings