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LLP SETTLEMENT SCHEME 

LLP Settlement Scheme – 2020 is a Onetime relaxation scheme for waiver of additional fees to the defaulting LLPs to make good their default by filing pending documents and to serve as a compliant LLP in future.

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Overview – LLP Settlement Scheme – 2020

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OVERVIEW

As part of Government of India’s efforts to promote ease of doing business the Ministry of Corporate Affairs has introduced ‘LLP Settlement Scheme, 2020’ allowing a one-time condonation and relaxation of additional fees to the defaulting LLPs in filing statutory documents with the Registrar.

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As part of Government of India’s efforts to promote ease of doing business the Ministry of Corporate Affairs has introduced ‘LLP Settlement Scheme, 2020’ allowing a one-time condonation and relaxation of additional fees to the defaulting LLPs in filing statutory documents with the Registrar.

LLP Settlement Scheme – 2020 

Ministry of Corporate Affairs has introduced a scheme namely “LLP Settlement Scheme, 2020”, by allowing a One-time condonation of delay in filing statutorily required documents with the Registrar. 

The scheme was introduced vide Notification No. G.S.R. 59(E) Dated 30th January, 2020 and was modified vide General Circular No.13 /2020 dated 30th March 2020. The ministry has extended the timeline till 30th September 2020 and has waived the additional fee for filing the returns.

What is LLP Settlement Scheme

LLP Settlement Scheme – 2020 is a Onetime relaxation scheme for waiver of additional fees to the defaulting LLPs to make good their default by filing pending documents and to serve as a compliant LLP in future.

The Scheme will be in force from 1st April 2020 to 30th September 2020.

(a) “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 and rules made there under

(b) Any “defaulting LLP” is permitted to file belated documents, which were due for filing till 31st October, 2019 in accordance with the provisions of this Scheme

Applicability of LLP Settlement Scheme – 2020

This Scheme shall ONLY apply to the filing of the following documents:

(1) Form-3 – Information with regard to limited liability partnership agreement and changes, if any, made therein;

(2) 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;

(3) Form-8 – Statement of Account & Solvency (Annual or Interim);

(4) Form-11 – Annual Return of Limited Liability Partnership (LLP).

This Scheme shall not apply to LLPs which has 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. 

Payment of fees under the Scheme

The defaulting LLPs can avail of the scheme for filing documents which have not been filed or registered in time on payment of normal fee as applicable and there will be no Additional Fee or Penalty.

LLP Settlement Scheme 2020 – Requirements


“Defaulting LLP”

Check if the LLP has defaulted in any filings from the date of Registration till 31st August, 2020

Pending Documents

Identify the pending documents for Filing.

Availability of Scheme

The Scheme will be in force from 1st April 2020 to 30th September 2020.

LLP Settlement Scheme – 2020


Documents Required


This Scheme shall ONLY apply to the filing of the following documents:

 

  1. = Form-3 – LLP agreement and changes, if any, made therein;
  2. = 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;
  3. = Form-8: Statement of Account & Solvency (Annual or Interim);
  4. = Form-11: Annual Return of Limited Liability Partnership (LLP).

LLP Settlement Scheme – 2020


No Additional Fee – Only Normal Fee will be applicable

LLP has to pay only the normal fee as applicable and there will be no Additional Fee or Penalty.

Immunity from prosecution

LLPs that avail this scheme shall not be subjected to prosecution by Registrar for delay of filing the documents filed under this scheme.

What is LLP Settlement Scheme 2020?
LLP Settlement Scheme – 2020 is a Onetime relaxation scheme for waiver of additional fees to the defaulting LLPs to make good their default by filing pending documents and to serve as a compliant LLP in future.
What is meant by Defaulting LLP
“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 and rules made there under
What is the Applicability of LLP Settlement Scheme – 2020
This Scheme shall ONLY apply to the filing of the following documents: (1) Form-3 – Information with regard to limited liability partnership agreement and changes, if any, made therein; (2) 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; (3) Form-8- Statement of Account & Solvency (Annual or Interim; (4) Form-11- Annual Return of Limited Liability Partnership (LLP).
Consequences of non-availing / continuing Default
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.
Applicability of LLPSS-2020 Scheme
Any “defaulting LLP” is permitted to file belated documents, which are due for filing till 31st August 2020 in accordance with the provisions of this Scheme:
What are the benefit of the Scheme ?
LLP has to pay only normal fee for filing. No additional fee & prosecution for delay in filing.
What is the benefit of the LLPSS-2020 ?
The defaulting LLPs, which have filed their pending documents during the Scheme period and made good the default, shall not be subjected to prosecution by ROC for such defaults.

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