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Ministry of Corporate Affairs on March 04, 2020 vide General Circular No. 6/2020 had announced LLP Settlement Scheme-2020-reg. to give relief to the Limited Liability Partnerships (LLPs) which have defaulted in filing of certain LLP forms with the Registrar of Companies.

MCA on March 30, 2020 vide General Circular No. 13/2020 has modified the said LLP Settlement Scheme-2020 ("Scheme") (Click Here) by extending the tenure of the Scheme and granting major relief in terms of amount of fees payable on the delayed filings.

A comparative study of the old and modified LLP Settlement Scheme-2020 is given below:

Comparative Analysis of the old and modified LLP Settlement Scheme-2020
   

Old LLP Settlement Scheme-2020

Modified LLP Settlement Scheme-2020

Commencement of the Scheme

The scheme was set to commence from March 16, 2020

The Scheme will come into force w.e.f April 01, 2020

Tenure of the Scheme

From March 16, 2020 to June 13, 2020

From April 01, 2020 to September 30, 2020

Payment of fee

Rs. 10 per day additional fees subject to the maximum fees of Rs. 5000/- per form

No additional fees will be levied

Applicability Period

Applicable to the filings due till October 31, 2020

Applicable to the filings due till August 31, 2020

Coverage of the Scheme

Applicable only to the following LLP forms:

  1. Form 3- Initial LLP agreement/Changes in LLP Agreement
  2. Form 4- Notice of appointment, cessation, change in name/ address/designation of a designated partner or partner and consent to become a designated partner/partner
  3. Form 11- Annual Return of Limited Liability Partnership
  4. Form 8- Statement of Accounts and Solvency (Annual)

Applicable to all the documents or forms which are required to be filed in MCA-21 registry under the provisions of LLP Act, 2008 and rules made there under.

Non-availability of the benefits of the Scheme

LLPs which have made an application to the Registrar in LLP Form 24 for striking off their names from register under the Rule 37(1) of the LLP Rules, 2009.

Same as in the old scheme

Immunity from prosecution 

Yes

Yes

 
 

Modified LLP Settlement Scheme-2020 can be seen as a big relief and one time opportunity for the LLPs to complete their due filings without any additional financial burden. The Scheme will specifically help small and inactive LLPs to bring themselves back into compliance zone.

Disclaimer: This material and the information contained herein is prepared by the author for the purpose of general information on a particular subject or subjects and is not an exhaustive treatment of such subject(s). Neither the Author nor JMJA & Associates LLP or its members/employees is, by means of this material, rendering professional advice or services. The information is not intended to be relied upon as the sole basis for any decision which may affect you or your business. Before making any decision or taking any action that might affect your personal finances or business, you should consult a qualified professional adviser. JMJA & Associates LLP or the author shall not be responsible for any loss whatsoever sustained by any person who relies on this material.

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Category Corporate Law, Other Articles by - CS Anupriya Saxena 



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