MODIFIED LLP SETTLEMENT SCHEME 2020

MODIFIED LLP SETTLEMENT SCHEME 2020

The Scheme has been brought to give a sigh of relief by reducing the burden of Compliance that are being followed by the LLPs.

Overview

Ministry of Corporate Affairs in continuation to General Circular No. 06/2020 dated 4th March, 2020 in which the LLP Settlement Scheme, 2020 (LLPSS-2020) has been notified, which was modified issuing a fresh notification through General Circular 13/2020 dated March 30, 2020.
 

The LLP Settlement Scheme, 2020 (LLPSS-2020) provides the opportunity to all the defaulting LLPs to make their default good by filing all the all their pending compliances, without paying any additional fees, during the said period which starts from April 1,2020 and ends on September 30, 2020. The Scheme has been brought to give a sigh of relief by reducing the burden of Compliances that are being followed by the LLPs. It helps the LLP to make a fresh start.
 

What is LLP Settlement Scheme 2020?

The LLP Settlement Scheme 2020 is a one-time opportunity for all the LLPs to make their default good if they are in default in filing the applicable statutory documents, forms etc. with the Ministry within the stipulated time as prescribed in the LLP Act. The scheme is applicable between the time period starting from 1st April, 2020 and ends on 30th of September, 2020. Earlier the time period of the scheme was from March 16, 2020 to June 13, 2020. It is applicable to all the defaulting LLPs for filing of belated documents that were due for filing.

As per the scheme no additional fees will be levied on the filing of the belated documents other than the normal prescribed fees. The Registrar will not prosecute those defaulting LLPs who complete their filing of all the belated statutory documents, forms etc. by end of 30th September, 2020.  The scheme will not be applicable to those LLPs who have made the application for striking off the name of the LLP from the Registrar as per the LLP Rules, 2009.
 

Benefits of Modified LLP Settlement Scheme, 2020

  • The LLP Settlement Scheme, 2020 (LLPSS-2020) provides one-time opportunity to the Limited Liability Partnerships (LLPs), to file all their pending compliances, without paying any additional fees, during the said period which starts from April 1,2020 and ends on September 30, 2020.
     
  • The Registrar will not prosecute those defaulting LLPs who complete their filing of all the belated documents, forms, Statutory Annual compliances by end of September 30, 2020.
     
  • Immunity will be granted to the defaulting LLPs who avail this scheme. They will not have to pay any additional fees after availing this scheme at the time of filing the late returns
     
  • DIN holders marked as deactivated due to non-filing of DIR-3 KYC or DIR-3 KYC web form, can also file the said form without any late fees of Rs. 5,000/- and get the active status.
     

Forms covered under this Scheme

The forms which are covered under this act are Form 3, Form 4, Form 5, Form 8 [Statement of Account & Solvency (Annual or Interim)], Form 11 [Annual Return of Limited Liability Partnership], Form 12, Form 15, Form 22, Form 23, Form 29 and Form 31 as per the LLP Act.
 

Non Applicability of Scheme

This scheme will not be applicable to those LLPs that has made an application in E-Form 24 for striking off its name with the registrar.
 

Consequences of Non-Availing the Scheme

If the LLP’s who have not availed this scheme and are still in default in filing of the statutory documents, forms, returns etc. with Ministry of Corporate Affairs, then the concerned ROC will take necessary actions against them.
 

Takeaway

It is a one-time settlement scheme, so it is advisable to all the defaulted LLP’s to avail the benefit of this scheme and make their LLP get rid from the defaulter tag. By availing this scheme, they will not be liable to pay any additional fees as prescribed on defaulted forms. They can file the defaulted forms with normal fees only.
 

Edited by Minu Mishra