FAQ on LLP Settlement Scheme, 2020 As Modified By MCA General Circular No. 13/2020 Dated 30.03.2020
With a view to deal with the current financial and economic fall-out, due to the outbreak of COVID-19, the Ministry of Corporate Affairs has come up with certain important reliefs for the Corporate Sector. On 4th March, 2020 the MCA vide its General Circular No. 6/2020 with subsequent modifications vide General Circular No. 13/2020, dated 30.03.2020, has introduced a new scheme called ‘LLP Settlement Scheme, 2020‘ (LLPSS-2020), which provides the Defaulting LLPs a one-time chance to avail condonation of such default with no additional fees charged and also provides a scope to achieve immunity against prosecution with respect to such default.
In order to provide our readers, better clarity on the Scheme, we pick-up some general questions to be asked about the scheme and answer them herein below-
Q 1. On whom the Modified LLP Settlement Scheme, 2020 is applicable?
Ans: The scheme applies only to the Defaulting LLPs.
Q 2. On whom the Modified LLP Settlement Scheme, 2020 is not applicable?
Ans: As per Paragraph 8A(vi), the scheme shall not apply to the LPPs which have made applications in Form 24 to the Registrar, for striking off their names from the register.
Q 3. What is a “Defaulting LLP”?
Ans: As per Paragraph 8A(ii)(c) of the scheme a “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.
Q 4. Which documents are permitted to be filed under this scheme?
Ans: As per Paragraph 8A(iii), only belated documents are permitted to be filed under this Scheme.
Q 5. What are the “Belated Documents”?
Ans: As per Paragraph 8A(ii)(d) of the scheme “belated documents” means all documents or forms which are required to be filed in the MCA-21 registry under the provisions of LLP Act, 2008 and the rules made thereunder.
Q 6. What is the tenure of this Scheme?
Ans: The scheme shall be effective for a period of 6 months i.e. from 01.04.2020 to 30.09.2020.
Q 7. What are the benefits available under this scheme?
Ans: This scheme provides three-fold benefit to the Defaulting LLPs. They are-
a) Belated documents which were due for filing till 31st August, 2020, can be filed till 30th September, 2020.
b) No additional fees will be charged for delayed filing.
c) Immunity shall be provided from prosecution in respect of documents filed under this Scheme.
Q 8. Is there any fees charged under this scheme for filing the belated documents?
Ans: Yes, the general fees for filing the documents shall be charged. The exemption is with respect to additional fees for belated filing only.
Q 9. What is the procedure to avail immunity against prosecution under this scheme?
Ans: The defaulting LLPs have to file all the belated documents till 30th September, 2020 and make good the default. Then only they can avail immunity from prosecution by Registrar for such default.
Q 10. What are the consequences for non-availing the scheme?
Ans: If any LLP does not avail the scheme and continues to be in default in filing the documents, then the Registrar, after 30th September, 2020, shall take necessary action under LLP Act, 2008.
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