LLP Settlement Scheme, 2020:
LLP Settlement Scheme 2020 is a one-time relaxation scheme for the Limited Liability Partnerships (LLPs) which are at default for not filing the compulsory forms and documents for compliance. The same can now be filed by paying additional fees and the LLPs can become compliant with the laws and regulations. The Scheme is not a permanent but just one-time compliance scheme for the Limited Liability Partnership (LLP). It is part of the government’s effort to promote its initiative of ease of doing business in India. The LLPs have been allowed to file in the defaulting and pending statutory documents with the Registrar of Companies (ROC). This new scheme is in line with the Companies Fresh Start Scheme (CFSS), 2020. It is immunity from the penal actions, penalties and fines for non-filing provided to the LLPs.
Objective of the Scheme:
The main objective of the LLP Settlement Scheme 2020 is to promote the ease of doing business in India initiative of the government and to give one time opportunity to the LLPs to be compliant with ROC and avoid the penal actions or penalties.
Period for the LLP Settlement Scheme:
The LLP Settlement Scheme came into effect from 16th March 2020. This scheme will remain in force till 13th June 2020.
Meaning of defaulting LLP as per the Scheme:
As per the LLP Settlement Scheme, the defaulting LLPs means any registered LLP in India under the Limited Liability Partnership Act, 2008 and which are at default for not filing the pending forms and documents with the ROC as prescribed by the act.
Application to the Registrar of Companies:
The LLPs are not required to file any separate application to the ROC under the scheme. They are just required to file the pending documents by paying the statutory and applicable fees.
Applicability of the Scheme on various filling:
The LLP Settlement Scheme applies to the following documents and form filing-
- Form 3: For filing information related to the agreement of the LLP and any changes made in it.
- Form 4: For filing the Notice of appointment, change in name or designation or address and cessation of the partners of the firm and the consent of the individuals for becoming the partner.
- Form 8: For filing the Statements of Accounts and Solvency on an interim or annual basis.
- Form 11: For filing the Annual Returns of the Limited Liability Partnership (LLP).
- No other form is applicable to be filed under the LLP Settlement Scheme other than the mentioned ones.
LLPs not applicable under the scheme:
All the LLPs that have already made an application under Rule 37(1) of the LLP Rules, 2009 in Form 24 with the ROC for striking off the firm’s name from the register are not applicable for taking the advantage of the said scheme.
Period of permitted documents for filing under the Scheme:
The documents which were due for filing till 31st October 2019 are permitted to be filed under the LLP Settlement Scheme.