LLP settlement scheme-2020- Defaulting LLPs Can Breathe A Sigh Of Relief!!!!
Ministry of Corporate affairs vide its General Circular No. 6/2020‘ dated 04th March, 2020 notified ‘LLP settlement Scheme, 2020′. Article explains LLP Settlement Scheme-2020 in a Nutshell with FAQs.
> LLP Settlement Scheme-2020 in a Nutshell:
| Legal provision: | The Central Government in exercise of its power u/s 460 of the Companies Act, 2013 (extended to LLPs vide Gazette Notification No. G.S.R. 59(E) Dated 30TH January, 2020 u/s 67 (2) of the Limited Liability Partnership Act, 2008) has decided to introduce a scheme namely “LLP Settlement Scheme, 2020”, by allowing a One-time condonation of delay in filing statutorily required documents with the Registrar. |
| Scheme Applicable From: | 16th March, 2020 up to 13th June, 2020. |
| Scheme Applicable To: | Defaulting LLP: Any “defaulting LLP” is permitted to file belated documents, which were due for filing till 31st October, 2019 in accordance with the provisions of this Scheme. i.e. Forms that are due till 31st October,2019 can only be considered for the said scheme.
“Defaulting LLP” means 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. |
| Payment of Fees and Additional Fee as per LLP Settlement Scheme-2020: | The defaulting LLPs may file forms by making payment of additional fees of ₹ 10/- per day for each day during which the default continues (instead of ₹ 100/- for each day of such delay in addition to any fee as is payable as per section 69 of Limited Liability Partnership Act, 2008) subject to a maximum of ₹ 5,000/- per Form. |
| Scheme Applicable for following forms only: | i. Form-3: Information with regard to limited liability partnership Initial agreement and changes, if any, made therein;
ii. Form-4: Notice of appointment, cessation, change in name/ address/designation of a designated partner or partner and consent to become a partner/designated partner; iii. Form-8: Statement of Account & Solvency (Annual or Interim); iv. Form-11: Annual Return of Limited Liability Partnership (LLP). |
| Scheme not Applicable to: | LLPs that made an application in Form 24 to the Registrar, for striking off its name from the register as per provisions of Rule 37(1) of the LLP Rules, 2009. |
| Immunity from prosecution | The defaulting LLPs, which have filed their pending Forms till 13th June, 2020 and made good the default, shall not be subjected to prosecution by Registrar for such defaults. |
| Upon Conclusion of Scheme: | The Registrar shall take necessary action under the Limited Liability Partnership Act, 2008 against the LLPs which have not availed this Scheme and are in default in filing of documents as required under the provisions of LLP Act, 2008 in a timely manner. |
> IMPORTANT TIMELINES:
| Commencement of Scheme on | 16th March, 2020 |
| Scheme Shall remain in force upto | 13th June, 2020 |
Source: https://taxguru.in/corporate-law/llp-settlement-scheme-2020.html
FAQs on LLP Settlement Scheme 2020
Below FAQs seek to answer some common questions asked with reference to the following Scheme:
| Sr. No. | Questions | Answer |
| 1. | What is LLP Settlement Scheme-2020? | It is a One-time condonation of delay Scheme for filing statutorily required documents/forms of Limited Liability Partnership which were due for filling till 31st October, 2019 by paying maximum upto ₹ 5000/- per form with the Registrar of Companies. |
| 2. | Duration of Scheme? | 16th March, 2020 to 13th June,2020 |
| 3. | Scheme Applicable to? | Only to defaulting LLPs.
Defaulting LLPs/ Non-Compliant LLPs means those LLPs who have failed to file following forms Form-3, Form-4, Form-8 & Form-11 till 31st October, 2019. |
| 4. | Additional fees during the Scheme? | ₹ 10/- per day for each day during which the default continues subject to a maximum of ₹ 5,000/- per Form. |
| 5. | Scheme Applicable for Which forms? | Scheme Applicable only for filling Form-3, Form-4, Form-8 & Form-11. |
| 6. | What are the Consequences if the Defaulting LLP doesn’t take benefit of LLP Settlement Scheme-2020? | If the Defaulting LLP doesn’t take benefit of LLP Settlement Scheme – 2020, then the said LLPs have to file forms with additional fees as per Section 69 of Limited Liability Partnership Act, 2008 i.e. ₹ 100/- for each day of such delay in addition to any fee as is payable
OR Registrar may Initiate Prosecution against Defaulting LLPs. |
| 7. | What are the Advantages to the Defaulting LLPs those took benefit of LLP Settlement Scheme-2020? | i. Monetary benefits as Huge amount of Additional fees is waived.
ii. The defaulting LLPs, which have filed their pending Forms till 13TH June, 2020 and made good the default, shall not be subjected to prosecution by Registrar for such defaults. |
Authors:
| Name: |  |
|
| Organization | M/S Govil Rathi & Associates, Ahmedabad | |
| Membership No.: | A58653 | A58148 |
Author Bio
