What is Revised LLP Settlement Scheme 2020?

General Circular of LLP Modified Settlement Scheme

MCA has modified LLP Settlement Scheme As per General Circular No.13/2020 dated 30th March, 2020

What is the time period for revised LLP settlement scheme 2020:-

The time period of LLP Settlement Scheme is from 01^st April 2020 and shall remain effective up to 30^th September 2020 (both days inclusive)

What is the objective behind the introduction of LLP settlement scheme 2020:-

It has come to the notice of the government that a large number of LLPs have defaulted in their various compliances. Due to this, the records available in the electronic registry are not updated and they are not available to the stakeholders for inspections. Further due to non-compliance their designated partners are liable for criminal prosecution and LLPs cannot be closed till all compliances are completed. In line with the Government’s constant effort to promote ease of doing business, it has been decided to give an Onetime relaxation in additional fees to the defaulting LLP’s and this scheme was made keeping in mind all such points for LLPs.

Documents relating to which period can be filed in LLP Settlement Scheme:-

“Defaulting LLP” is permitted to file belated documents, which were due for filing till 31^st August 2020 in accordance with the provisions of this Scheme.

Whether any additional fees will be payable for filing forms under this scheme?

No other additional fees to be charged on belated documents rather than just normal application fees to be charged.

Is there any immunity from prosecution in respect of documents filed under the scheme?

Defaulting LLP’s will not be liable to a prosecution by a Registrar, who complete the filing of all the belated documents and dues by the 30th of September, 2020.

Which LLPs cannot opt for the scheme?

• LLPs which have made the application for striking off the name of the LLP from ROC as per LLP Rules,2009.
• LLPs whose status is changed to defunct by registrar due to non-filing of Forms for the last 2-3 years.

What will be action taken by the registrar in case Defaulting LLPs have not availed this scheme after the conclusion of the same?

On the conclusion of this scheme after 30^th September 2020, the Registrar shall take necessary actions under the LLP Act, 2008 against the LLP’s which have not availed this Scheme and are in default in filing of the documents as required under provisions of LLP Act, 2008 in a timely manner. The defaulting LLPs may be subjected to prosecution by Registrar for such defaults.

Sources:-

• MCA’s General Circular No.06/2020 dated 04-03-2020
• Ministry’s General Circular No.13/2020 dated 30-03-2020.
• ICAI FAQs on LLP Settlement Scheme. Click here.