There are many small enterprises who have formed an LLP (Limited Liability Partnership). It has been almost a decade that the LLP Act came into existence. Businesses started preferring LLP over partnership because of its benefits.
However, there are many LLP who have not done their annual compliance. Delay in any form filing of LLP comes with Rs 100 per day. So, if there is a delay of 30 days for filing any form, you will have to pay 3000 Rs.
Hence the Government came up with LLP Settlement scheme, 2020 for all the defaulting LLPs so that they can avail the benefit and get rid of the old compliance at a very nominal penalty. Read the below details to have a detailed understanding
To whom it is applicable
This scheme is applicable to all defaulting LLP who have not done their annual filings like Form 8 and form 11. This scheme is effective from 16th March, 2020.
To whom it is not applicable:
This scheme is not applicable to those LLP who have applied for strike off or closure of their LLP
Forms that can be filed:
Form 8 (Statement of Accounts & solvency)
Form 11 (Annual return of LLP)
Form 3 (Information with respect to LLP agreement)
Form 4 (Notice of appointment, cessation of partner, etc.)
Rs. 10 per form per day subject to maximum of Rs. 5000/- per form. This fee is one-time fee to be paid and complete all the pending compliance till 13th June, 2020. This is a one-time settlement fee to make good the default.
Time limit of the scheme
The due date for completing all the pending compliance is 13th June, 2020.
Conclusion: This is a good option given to all the defaulting LLP to keep your LLP alive and complete all the pending compliance. On the conclusion of the scheme, Government may take action against those LLP who have defaulted but have not availed this scheme.
So, avail the benefit and get rid of all the hassles in one go.