LLP Settlement Scheme 2020

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 01^st April 2020 and shall remain in force upto 30^th September, 2020.

 Applicability: Any "defaulting LLP" is permitted to file belated documents, which were due for filing till 31^st 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 30^th 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 30^th 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.