LLP Settlement Scheme – 2020 (Step Towards ‘Compliance”)

CS Divesh Goyal 04 Mar 2020 1,560 Views 1 comment Print Corporate Law | Articles

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.

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

Details of Scheme:

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

II. Cutoff Date for Late Filing: Defaulting LLP is permitted to file belated documents, which were due to filing till 31^st 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 13^th 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. 16^th March, 2020 and can file all pending forms till 13^th 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 31^st October, 2019. Defaulting LLP is permitted to file belated documents, which were due to filing till 31^st October, 2019

(Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at csdiveshgoyal@gmail.com). ‘

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Author Bio

Name: CS Divesh Goyal

Qualification: CS

Company: Goyal Divesh & Associates

Location: Delhi, New Delhi, IN

Member Since: 04 Jun 2017 | Total Posts: 598

CS Divesh Goyal is Fellow Member of the Institute of Companies Secretaries and Practicing Company Secretary in Delhi and Steering Voice in the Corporate World. He is a competent professional having enrich post qualification experience of a decade with expertise in Corporate Law, FEMA, IBC, SEBI, View Full Profile