Ministry of Corporate Affairs has launched LLP Settlement scheme-2020, on 4th March, 2020, which allows the Limited Liability Partnership for filing its pending required forms with the Registrar. It is a one-time condonation of delay. Instead of Rs. 100/- per day penalty, Rs.10/- per day would be charged subject to cap of Maximum Rs.5, 000/-.
It has been almost more than a decade since LLP Act came into being. It is hybrid mixture of Corporates and Partnerships, which offered better option for small scale enterprises.
LLP Settlement scheme shall come into force from 16th March, 2020 and it shall remain in force till 13th June, 2020. It would be applicable to the defaulting LLPs.
As an initiative for ease of doing business, it has decided by the Government Authorities to give relaxation in paying additional fees, to the defaulting LLP’s to make good their defaults by filing its pending forms and documents and according serve as a Compliant LLP in future.
LLP Settlement Scheme
It has come into notice of Government that large number of LLPs have not filed their following forms, therefore the scheme shall apply on the following forms:
- E-form: 3-LLP Agreement;
- E-form: 8-Statement of Account & Solvency;
- E-form: 11– Annual Return of LLP.
- E-from: 4- Notice of appointment, cessation, consent to become a partner/designated partner and change in name/ address/designation of a designated partner or partner.
LLP Settlement Scheme late fees
In the event of requisite forms not filed with in prescribed time presently. Defaulted LLPs may file such documents by paying additional fees of Rs.10/- per day subject to maximum Rs.5,000/- per form instead of Rs. 100/- per day.
This scheme has been introduced in pursuance of the Government’s object for ease of doing business, against the LLPs which have not availed this scheme and are in default of filing of the above mentioned forms as per the provisions of LLP Act, 2008 in a timely manner.