LLP Settlement Scheme 2020 - A Major Relief To Defaulting LLPs

LLP SETTLEMENT SCHEME 2020 – A MAJOR RELIEF TO DEFAULTING LLPs

  Ministry of Corporate affairs vide its General Circular No. 6/2020‘dated 04th March, 2020 notified ‘LLP settlement Scheme, 2020?. The Central Government 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. The scheme is a big relief to all those LLPs who has not filed the following statutory document with the Registrar:

  Lower Payment of Late fees-  Defaulting LLPs can opt this scheme and complete their filings with lesser payment of late fees of Rs. 10 per day for each pending form to be filed (earlier it was Rs. 100 per day) subject to a maximum of Rs. 5,000/- per form (earlier there was no limit) Time Period- The scheme shall be applicable with effect from 16th March, 2020 up to 13th June, 2020 Immunity from Prosecution - Such LLPs who opt for this scheme shall also get immunity from prosecution which means Registrar shall not take any action for contravention of provisions of the LLP Act made by them by non-filing statutory record within prescribed timeline as above Consequence if Scheme not opted – After expiry of this 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. In other words, if the Defaulting LLP doesn’t take benefit of LLP Settlement Scheme – 2020, then the said LLPs have to file forms with additional fees i.e. ? 100/- for each day of such delay in addition to any fee as is payable OR Registrar may Initiate Prosecution against such Defaulting LLPs.