LLP settlement Scheme, 2020 for defaulting LLPs
On the basis of representations received from various stakeholders for waiver of additional fee or condonation of delay and relaxations in additional fee in filling pending MCA/ROC forms w.r.t LLP, Government has come out with one-time settlement scheme vide General Circular No. 6/2020 dt. 04/03/2020 with an aim to bring non-compliant LLPs into the legal bracket.
Salient features of the scheme are as follows:
- Name of the scheme: LLP Settlement Scheme, 2020
- Applicability of the scheme: The scheme shall apply to pending forms which are due for filling till the date of 31/10/2019.
- Duration of the Scheme: Scheme will be effective from 16th March, 2020 and shall remain in force up to 13th June, 2020.
- Late fees / Additional fees payable for each form: Additional fees will be Rs. 10/- per day in delay, as compared to existing Rs. 100 /- per day in delay, subject to maximum fees for each pending form will not exceed Rs. 5,000/-
- Defaulting LLP’s filing form under this scheme will not be subject to prosecution by registrar for such defaults.
- Forms permitted to file under this scheme are
- Form 3 : Form for filling agreements and changes therein
- Form 4 : Form for filling changes in Partners
- Form 8 : Statement of Account & Solvency (Annual or Interim);
- Form 11 : Annual Return of Limited Liability Partnership (LLP)
- This scheme shall not be applicable to LLP’s which have filed Form 24 for striking off the LLP
- Consequence of non-filling of LLP forms: Due to not filing the required documents on time the LLPs and their designated partners are liable for criminal prosecution and the said LLPs cannot be closed till all compliance’s are completed.
Conclusion: large number of LLPs are not filing their due statutory Documents with ROC because of huge late fees in filling of forms. i.e. 100/- per day without higher cap of late fees.
Now, MCA is giving effective and most awaited one-time option to such defaulting LLPs to make good the defaults with payment of Rs. 10/- per day in delay subject to maximum additional fees of Rs. 5000/- per form.So, it is highly advisable to opt for the scheme and make your LLP compliant.
*This scheme has been revised : Read about revised scheme here
#Read full circular here
