Ministry of Corporate Affairs vide it General Circular No. 06/2020 dated 4th March, 2020 notified LLP Settlement Scheme, 2020, in continues of the same Ministry of Corporate Affairs vide General Circular No. 13/2020 dated 30 th March, 2020, made some necessary changes in the Scheme in view of the COVID-19 outbreak in the Country.
LLP Settlement Scheme, 2020 introduced earlier as under;
- Scheme applicable to all defaulting LLPs to file their belated returns or documents which were due for filing till 31 st October, 2019
- The scheme was applicable from 16 th March, 2020 to 13 th June, 2020
- Payment of fee and additional fees : The defaulting LLPs were allowed to file forms and documents by paying an additional fee of Rs. 10 per day for each day of default subject to a maximum of Rs. 5,000/- per Form, instead of Rs. 100 per day as the normal additional fee that
would have been chargeable as per section 69 of the Limited Liabilities Partnership Act, 2008. - The Scheme was applicable to below mentioned list of forms only;
i. Form-3 : Information with regard to LLP agreement and changes 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 and Solvency
iv. Form-11 : Annual Return - Inapplicability: Scheme was not applicable to the LLPs who have already made an application in Form 24 for striking off the name to the Registrar from the Register.
- Immunity from prosecution : Defaulting LLPs opting for the benefit under the scheme(till 13 th June, 2020) will not be liable for the prosecution by the Registrar for the defaults.
- Defaulting LLPs not opting for the Scheme : The Registrar shall take necessary steps against the LLPS not availed the benefit of the scheme under the Limited Liability Partnership Act, 2008 on the conclusion of the Scheme.
Revised LLP Settlement Scheme, 2020
- Scheme applicable to all defaulting LLPs to file their belated returns or documents which were due for filing till 31 st August, 2020
- The scheme was applicable from 1 st April, 2020 to 30 th September, 2020
Payment of fee and additional fees : The defaulting LLPs are allowed to file forms and documents without payment of any additional fee. - The Scheme was applicable to below mentioned list of forms only;
i. Form-3 : Information with regard to LLP agreement and changes 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 and Solvency
iv. Form-11 : Annual Return
v. Form-15 : Notice for change of Registered Office
vi. Form-5 : Notice for change of Name
vii. Form-12 : Notice for intimating other address for service of Documents
viii. Form-22 : Notice for intimation of Order of Court/Tribunal/CLB/Central
Government to the Registrar ix. Form-29 : Notice of
I. Alteration in the Certificate of Incorporation;
II. Alteration in the names and addresses of any of the persons authorized to accept service on behalf of a foreign limited liability partnership (FLLP)
III. Alteration of the principal place of business in India of FLLP
IV. Cessation to have a place of business in India
- Inapplicability(No Modification): Scheme was not applicable to the LLPs who have already made an application in Form 24 for striking off the name to the Registrar from the Register,
- Immunity from prosecution : Defaulting LLPs opting for the benefit under the scheme(till 30 th September, 2020) will not be liable for the prosecution by the Registrar for the defaults.
- Defaulting LLPs not opting for the Scheme (No Modification) : The Registrar shall take necessary steps against the LLPS not availed the benefit of the scheme under the Limited Liability Partnership Act, 2008 on the conclusion of the Scheme.
By CA Pooja Madhan
+91 9599186079