LLP SETTLEMENT SCHEME-2020

Introduction
  • On 04th March 2020 Ministry of Corporate Affairs (MCA) had issued a Circular the “LLP settlement scheme, 2020” & amended by circular no. 13/2020 dated 30th March 2020;
  • It is one-time waiver of additional filing fees for delayed filings by the LLP’s with the registrar of companies;
  • This scheme is notified especially for those with long standing defaults, and significantly reduce the related financial burden on them, thereby giving them an opportunity to make a “fresh start”, However, the immunity is only against delayed filings in MCA 21 and not against any substantive violation of law.

Period for Filing the Forms
  • From 1st April, 2020 to 30th September, 2020.

Applicability

 
  • 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;
  • 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.

Scheme shall not Applicable in Certain Cases

 
  • 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.

Manner of Payment
  • Every Defaulting LLPs shall be required to pay normal fees as prescribed on the date of filing of each belated documents and no additional fees will be charged.

Effect of Immunity
  • The defaulting LLPs, which have filed their pending documents till 30th September, 2020 and made good the default, shall not be subjected to prosecution by Registrar for such defaults.

After Conclusion of this Scheme
  • 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.

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