Short Summary of New LLP Settlement Scheme- 2020-

Large Numbers of LLP’s have defaulting in filling of followings forms:

♦ LLP-3 viz. LLp Agreement and change theirein

♦ LLP-8 Statement of Account and Solvency

♦ LLP-11 Annual Return of LLP

As per LLP Act if such form not being filed within prescribed time presently LLPs may file such documents on payment of additional fees of Rs. 100 per day.

Due to ease of doing business CG decide to give ‘onetime relaxation in additional fees to the defaulting LLP’s to make good their default by filling pending documents.

LLP Settlement Scheme 2020

This scheme shall be called as “LLP Settlement Scheme, 2020”.

Details of Scheme:

I. LLP Settlement Scheme, 2020 shall be effective for period 16th March, 2020 to 13th June, 2020

II. Cutoff Date for Late Filing: Defaulting LLP is permitted to file belated documents, which were due to filing till 31st October, 2019.

III. Manner of Additional Fees:

  • Additional fees of Rs. 10/- per day for delay
  • Maximum additional Fees Rs. 5,000/- per document

IV. Relaxation from Prosecution:

The defaulting LLP’s which have filed their pending documents till 13th June, 2020 shall not be subjected to prosecution by ROC.

V. Form on which LLP Settlement Scheme, 2020 shall be applicable:

  • LLP-3 viz. LLp Agreement and change theirein
  • LLP-4 Notice of appointment, cessation, change in name/ address/ designation of designated partner/ partner
  • LLP-8 Statement of Account and Solvency
  • LLP-11 Annual Return of LLP

VI. Non applicability of LLP Settlement Scheme, 2020:

This scheme shall not apply to LLPs which has made an application in Form 24 of the Registrar, for striking off its name.

Caution:

On conclusion of Scheme, The Roc shall take action against the LLPs which have

  • Not availed this Scheme, and
  • Are in default in filing of documents as required under act.

QUICK BITES

1. Whether LLP Settlement Scheme, 2020applicable only on 4 (four) forms of LLP?
This scheme is applicable on form forms of LLP only

  • LLP-3
  • LLP-4
  • LLP-8
  • LLP-11
2. What shall be per day additional fees as per LLP Settlement Scheme, 2020?
As per scheme per day additional fees shall be Rs. 10/- per day per form.
3. What shall be maximum Additional Fees per form?
Maximum additional fees per form shall be Rs. 5,000/-
4. From which dates LLPs will allow to file forms under LLP Settlement Scheme, 2020?
LLPs shall avail this scheme w.e.f. 16th March, 2020 and can file all pending forms till 13th June, 2020
5. What is the cut off dates of forms falling under LLP Settlement Scheme, 2020?
Cut off date of default of form is 31st October, 2019.

Defaulting LLP is permitted to file belated documents, which were due to filing till 31st October, 2019

(Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at [email protected]). ‘

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