Revised LLP Settlement Scheme 2020–7 Key Take-Aways

Chhota CFO 07 Apr 2020 1,320 Views 0 comment Print Corporate Law | Articles

Ministry of Corporate Affairs (MCA), regulatory body of corporate sector in India, vide its General Circular No 06/2020 dated March 04, 2020 and further modified vide General Circular No. 13/2020 dated 30th March, 2020, launched a one-time settlement scheme for the LLPs to grant one time immunity from additional fees and prosecution against the defaulting LLPs.

Sl. No.	Particulars	Details
1.	What is Revised LLP Settlement Scheme-2020?	One-time condonation of delay (one-time waiver of additional fees) Scheme for filing statutorily required documents/forms of LLP which were due for filing till 31^st August, 2020 at no additional fees
2.	Duration of Scheme	1^st April 2020 to 30^th September 2020
3.	Scheme Applicable to	Defaulting LLPs/ Non-Compliant LLPs means those LLPs who have failed to file following forms: Form-3: Information with regard to LLP Initial agreement and changes, if any Form-4: Notice of change in particulars of Designated partner/ Partner Form-5: Notice for Change of Name. Form-8: Statement of Account & Solvency (Annual or Interim); Form-11: Annual Return of LLP Form-12: Form for intimating other address for Service of Documents Form-15:Notice for change of place of registered office. Form-22: Notice of intimation of Order of Court/ Tribunal/CLB/ Central Government to the Registrar Form-23: Application for direction to Limited Liability Partnership (LLP) to change its name to the Registrar Form-29 : Notice of alteration in the certificate of incorporation alteration in names and addresses of any of the persons authorized to accept service on behalf of a foreign limited liability partnership (FLLP) alteration in the principal place of business in India of FLLP cessation to have a place of business in India Form-31: Application for Compounding of an offence
4.	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.
5.	Additional fees during the Scheme	NO ADDITIONAL FEES
6.	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 ₹ 100/- for each day of such delay in addition to any fee as is payable OR Registrar may Initiate Prosecution against Defaulting LLPs.
7.	Advantages to the Defaulting LLPs those took benefit of LLP Settlement Scheme-2020	Monetary benefits –Complete waiver of Additional fees. The defaulting LLPs, which have filed their pending Forms till 30^th September 2020 and made good the default, shall not be subjected to prosecution by Registrar for such defaults.

In view to promote ease of doing business, a one-time opportunity has been given to the LLPs. Those who have defaulted in filing their returns can avail of this scheme so as to protect them from huge monetary expends and prosecution.

This article is co-authored by Asha Diwakar (Practicing Company Secretary) who is co-founder and Designated Partner of M/s CLAAT Corporate Advisors LLP (Chhota CFO).

Chhota CFO offers a range of services and integrated solutions in the areas of India corporate regulations, compliance, accounting and taxation for Start-ups, SMEs and Corporates – right from incorporating new companies, statutory registrations, secretarial compliance, bookkeeping and accounting, tax consulting & filing, audit & assurance and other associated professional services to start, maintain and grow your business.

Mrs. Asha Diwakar may be contacted at asha.diwakar@chhotacfo.com/connectus@chhotacfo.com.com and +91 973 973 6999

Priyanka Sethia Asha Diwakar

Disclaimer: Utmost care has been taken to prepare the article. However, inadvertently if any error occurs, please note that the authors shall not be held responsible for any such cause. The content published is only for educational purpose and shall not be construed as rendering of any professional advice in any manner whatsoever. The readers must exercise their own judgement and refer the original source before any implementation. The content is an original work of the authors and may be used only after prior written permission.