Modified LLP settlement Scheme, 2020 for defaulting LLPs
Ministry of Corporate Affairs had recently introduced LLP Settlement scheme, 2020 vide General Circular No. 6/2020 dt. 04/03/2020 with an aim to bring non-compliant LLPs into the legal bracket. You can find details of the original scheme here
However, in pursuance of the Government of India’s efforts to provide relief to law Limited Liability Partnerships (LLPs) in the wake of COVID-19 (Pandemic corona virus), Government has modified the scheme vide General Circular No 13/2020 dt. 30/03/2020 .
Salient features of the revised scheme are as follows:
- Name of the scheme: LLP Settlement Scheme, 2020-Modification
- Applicability of the scheme: The scheme shall apply to pending forms which are due for filling till the date of 31/08/2020.
- Duration of the Scheme: Scheme will be effective from 01, April 2020 and shall remain in force up to 30th September, 2020.
(Vide General Circular 31/2020 dated 28/09/2020 scheme is extended till 31/12/2020 🔗)
- Late fees / Additional fees payable for each form: Additional fees will be Rs.0/- per day in delay, as compared to existing Rs. 100 /- per day in delay. Yes there is no additional fees for filling belated documents. Only normal fees as applicable to applicable forms will be payable.
- 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
- Modified scheme is applicable to all documents or forms🔗 which are required to file with MCA/ROC under the provisions of LLP Act 2008 and rules made there under. This is major relief and change in revised scheme. As earlier scheme was only limited to filling of Form-3,Form-4, Form-8 and Form-11.
- 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 no payment of additional fees.So, it is highly advisable to opt for the scheme and make your LLP compliant without paying heavy additional fees.
#Here is the circular for original and revised LLP Settlement Scheme