With a view to promote the Government of India’s efforts to provide relief in the wake of COVID 19, the Ministry of Corporate Affairs has introduced the LLP Settlement Scheme, 2020‘ to provide an opportunity to  the Limited Liability Partnerships’ (LLPs) to make good any filing related defaults, irrespective of duration of default, and make a fresh start as a fully compliant entity.  The main benefit of the scheme is that it provides one-time waiver of additional filing fees for delayed filings by the LLPs with the Registrar of Companies during the tenure of the Schemes, i.e. during the period starting from 1st April, 2020 and ending on 30th September, 2020.

The conceptual summary of the scheme is as below:

Sr No Particulars Clarifications
1 Background of the Scheme Any Defaulting LLP is permitted to file belated documents, which were due for filling till 31st August, 2020 in accordance with the provision of the scheme.
2 Tenure of the Scheme 1st April, 2020 to 30th September, 2020
3 Benefits extended under Scheme 1) Onetime waiver of additional filing fees for delayed filings. However, normal fees in respect of documents filed under scheme are leviable.

2) An immunity certificate in respect documents filed under this Scheme shall be issued which grants immunity from Penalty and Prosecution pertaining to any delay associated with filing of belated documents.

4 Designated Authority Registrar of Companies having jurisdiction over the registered office of the company.
5 Eligibility for the Scheme & Period of Default Scheme is applicable for any “defaulting LLP” Where, Defaulting LLP means a 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.

Default relating any past period from incorporation of the LLP till the date is covered.

6 Applicability exclusions Scheme shall not apply to:

LLP which had made application in form 24 to Registrar, for striking off their name from the register as per provision of Rule 37(1) of the LLP Act, 2009

7 Which defaults are not covered under the immunity All other defaults except delay in filings of documents are not covered, such as proceedings involving interests of any Partner or any other person
8 Relaxation for Filing an Appeal against the order of an Adjudicating Authority Where last date of filing an appeal against the order of an Adjudicating Authority falls between 1st March, 2020 to 31st May, 2020, an extension of 120 additional days has been given from the last date of appeal filing.

During the additional period of 120 days, no prosecution for noncompliance of the order of the adjudicating authority, in so far as it relates to delay associated in filing of any document, statement or return etc., shall not be initiated.

Source / Circular : https://taxguru.in/company-law/mca-modifies-llp-settlement-scheme-2020.html

Author Bio

Qualification: CA in Practice
Company: Parikh & Associates
Location: AHMEDABAD, Gujarat, IN
Member Since: 06 Jul 2019 | Total Posts: 8
Vedant K. Parikh is Partner at Parikh & Associates, Chartered Accountants based at Ahmedabad. Vedant is an active member of the Institute of Chartered Accountants of India and is committee member at the Ahmedabad Branch of ICAI. Vedant is serving as Independent Director in a Co-Operative B View Full Profile

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May 2021