Introduction:
In addition to “Companies Fresh Start Scheme, 2020” ,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.
As part of government’s constant efforts to promote ease of doing business, it has been decided to give a one-time relaxation in additional fees to the defaulting LLPs to make good their default by filing pending documents and to serve as a compliant LLP in future.
Details of the LLP settlement Scheme, 2020
This Scheme is effective from 01st April 2020 and shall remain in force upto 30th September, 2020.
- Applicability: Any “defaulting LLP” is permitted to file belated documents, which were due for filing till 31st August 2020, in accordance with the provisions of this Scheme.
Where, “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.
- Manner of payment of fees and additional fee on filing belated document for seeking immunity under the Scheme – The defaulting LLPs may themselves avail of the scheme for filing documents which have not been filed or registered in time on payment of fee as payable for filing of such document or return.The defaulting LLPs may file form till 30th September, 2020, till then no additional fees will be charged to file forms.
- Immunity from prosecution in respect of document(s) filed under the scheme – The defaulting LLPs, which have filed their belated documents till 30th September 2020 and made good the default, shall not be subjected to prosecution by registrar for such defaults.
- The Scheme not to apply:- This Scheme shall not apply to LLPs which have made application in Form 24 (Application to the Registrar for striking off name) to the registrar, for striking off their name from the register as per the provisions of Rule 37(1) of the LLP Rules, 2009.
- This Scheme shall apply to the filing of following documents mentioned below:-
(i.) Form-3:- Information with regard to limited liability partnership 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).
(v.) Form 15: Notice for change of place of registered office.
(vi.) Form 5: Notice for change of name.
(vii.) Form 12: Form for intimating other address for Service of Documents.
(viii.) Form-22: Notice of intimation of Order of Court/ Tribunal/CLB/ Central Government to the Registrar.
(ix.) Form-31: Application for Compounding of an offence.
(x.) Form-23: Application for direction to Limited Liability Partnership (LLP) to change its name to the Registrar.
(xi.) Form-29 : Notice of (a) alteration in the certificate of incorporation or registration; (b) alteration in names and addresses of any of the persons authorized to accept service on behalf of a foreign limited liability partnership (FLLP) (c) alteration in the principal place of business in India of FLLP (d) cessation to have a place of business in India.
LLP Settlement Scheme,2020 is a very good opportunity to all defaulting LLPs to file the belated returns and to avoid all the late fees, Penalty and Prosecution accordingly.
If you need any further clarification on this, please feel free to reach us at contact@msassociates.pro or call us on 080-41633750 or 9880542668.
Normal LLP Filing vs LLP Settlement Scheme 2020 (Quick Scan)
| Aspect | Normal LLP Filing | Under LLP Settlement Scheme 2020 |
|---|---|---|
| Who can file? | All LLPs as per regular due dates. | “Defaulting LLPs” with filings due up to 31 Aug 2020. |
| Timeline | As per statutory due dates; delay attracts additional fee. | Scheme active 1 Apr 2020 → 30 Sep 2020. |
| Fees on belated filings | Additional fee payable on delay. | No additional fee for eligible forms filed by 30 Sep 2020. |
| Immunity | No immunity from prosecution for past defaults. | Immunity from prosecution for defaults cured within scheme window. |
| Exclusions | Not applicable. | Not for LLPs that filed Form 24 for strike-off. |
| Forms covered | As per regular filing requirements. | Key forms: 3, 4, 5, 8, 11, 12, 15, 22, 23, 29, 31 (full list below). |
How It Works — Visual Timeline
Defaults exist (due till 31 Aug 2020)
Active 1 Apr–30 Sep 2020
Pay normal filing fee only
For defaults cured within window
Case Study — Using the Scheme to Clear Form-11 Backlog
Background: ABC LLP failed to file Form-11 (Annual Return) for FY 2018–19 and FY 2019–20 within the due date.
Action under the Scheme: During the scheme window (before 30 Sep 2020), ABC LLP filed its pending Form-11 returns by paying only the normal filing fees (no additional fee).
Outcome: The LLP’s defaults were regularized and it received immunity from prosecution for the cured defaults as provided in the scheme.
Note: The scheme was not available had the LLP already applied for strike-off via Form 24.