An additional fee was required to be paid for non-compliance or late filing of statutory documents and this was becoming an additional burden on Limited Liability Partnership (LLP). The government has launched LLP Settlement Scheme, 2020 which provides a one-time opportunity to clear the dues as well as filing the pending documents.
The Ministry of Corporate Affairs (MCA) vide its General Circular No. 6/2020 dated March 4, 2020 notified ‘LLP Settlement Scheme, 2020’. In continuation with the same, the MCA has modified the said Scheme vide its General Circular No. 13/2020, dated March 30, 2020, to enable Limited Liability Partnerships registered in India to focus on taking necessary measures to address the threat of COVID-19 threat.
Given below is a brief description of the whole Revised LLP Settlement Scheme, 2020.
| Particulars | Provision as per General Circular No.6/2020 dated 04th March, 2020 | Modifications in LLP Settlement Scheme As per General Circular No. 13/2020 dated 30th March, 2020 |
| Legal Provision | 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. | No Modification in the said Provision. |
| Scheme Applicable From | 16th March, 2020 up to 13th June, 2020. | 1st April, 2020 up to 30th September, 2020 |
| Scheme Applicable To | Defaulting LLP: 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. i.e. Forms that are due till 31st October, 2019 can only be considered for the said scheme. “Defaulting LLP” means 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. | Defaulting LLP: 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. i.e. Forms that are due till 31st August, 2020 only be considered for the said scheme. “Defaulting LLP” means 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. |
| Payment of Fees and Additional Fee as per LLP Settlement Scheme 2020 | The defaulting LLPs may file forms by making payment of additional fees of ₹10/- per day for each day during which the default continues (instead of ₹ 100/- for each day of such delay in addition to any fee as is payable as per section 69 of Limited Liability Partnership Act, 2008) subject to a maximum of ₹5,000/- per Form. | The defaulting LLPs may file form still 30th September, 2020, till then no additional fees will be charged to file forms. |
| Scheme Applicable for following forms only | i. Form-3: Information with regard to Limited Liability Partnership initial 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). | i. Form-3: Information with regard to limited liability partnership Initial 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. |
| 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. | No Modification |
| Immunity from prosecution | The defaulting LLPs, which have filed their pending Forms till 13th June, 2020 and made good the default, shall not be subjected to prosecution by Registrar for such defaults. | The defaulting LLPs, which have filed their pending Forms till 30th September, 2020 and made good the default, shall not be subjected to prosecution by Registrar for such defaults. |
| Upon Conclusion of Scheme | The Registrar shall take necessary action under the Limited Liability Partnership 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. | No Modification |
To view the circular from the government, click here.
