What is the Salient Features of LLP Settlement Scheme, 2020?
Channel: R V Seckar
Date: 2020-10-07

What is the Salient Features of LLP Settlement Scheme, 2020? SALIENT  LLP SETTLEMENT SCHEME 2020?
 What is the Salient Features of LLP Settlement Scheme, 2020?
“LLP Settlement Scheme, 2020? is a scheme to give a onetime relaxation in additional fees to the defaulting LLPs to make good their default by filing pending documents viz. Form Nos. 3, 4, 8 and 11 and to serve as a compliant LLP in future. Refer General Circular No 2/2020 available at the link - http://www.mca.gov.in/Ministry/pdf/GeneralCircular06_04032020.pdf
WHY YOU HAVE TO AVAIL LLP SETTLEMENT SCHEME 2020?
Main Objective of the Scheme
The Ministry of Corporate Affairs, as part of Government’s constant efforts to promote ease of doing business, 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.
What is the Time Limit of this Scheme ?
The Scheme shall come into force on the 16th March, 2020 and shall remain effective up to 31st December  2020 (both days inclusive).
What is the Additional Fee to be paid Under Scheme ?
Under the scheme, for the belated documents, the LLP shall pay statutory filing fees as prescribed under the LLP Act and rules made there under along with an additional fee of Rs 10 per day, provided that such payment of additional fee shall not exceed Rs. 5,000 per document.
ON WHICH FILING THE SCHEME SHALL BE APPLICABLE?
Scheme shall be applicable inly on filing of following documents :
Form-3 Information with regard to limited liability partnership agreement and changes, if any, made therein
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
Form-8 Statement of Account & Solvency (Annual or Interim) ;
Form-11 Annual Return of Limited Liability Partnership (LLP).

 FOR WHICH LLPS THIS SCHEME IS NOT APPLICABLE?
This Scheme shall not apply to LLPs which have 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.
IS THERE ANY IMMUNITY FROM PROSECUTION IN RESPECT OF DOCUMENT(S) FILED UNDER THE SCHEME?
Yes, the defaulting LLPs, which have filed their pending documents till 13th June 2020 and made good the default, shall not be subjected to prosecution by Registrar for such defaults.
WHAT ACTION REGISTRAR CAN TAKE ON THE DEFAULTING LLPS WHICH HAVE NOT AVAILED THIS SCHEME AFTER CONCLUSION OF THE SAME?
On the conclusion of the Scheme, the Registrar shall take necessary action under the LLP Act, 2008 against the LLPs which have not availed this Scheme and are in default in filing of documents as required under the provisions of LLP Act, 2008 in a timely manner. The defaulting LLPs may be subjected to prosecution by Registrar for such defaults.

Correction 
The defaulting LLPs may file form still 31st December ,2020, till then 
No Additional fees will be charged to file forms.