LLP Settlement Scheme, 2020

Introduction:

The above settlement scheme has been introduced by the central government vide its power u/s 460 of the Companies Act, 2013. The scheme is known as "LLP Settlement Scheme, 2020". However, it has been notified vide Circular No 6/2020 dated 04-03-2020 and amended further vide Circular 13/2020 date 30-03-2020.

Applicability:

This scheme is applicable to any defaulting LLP i.e. LLP registered under Limited Liability Partnership Act, 2008 and which has made default in filing of documents on the due dates specified under LLP act 2008 and the rules made there under and which were due to be filed till 31st October, 2019.

Effective Date:

The scheme shall come into force with effect from 1st April, 2020 and shall remain in force up to 30th September, 2020.

General Points:

1. Due to non-compliance of many LLPs in general, the records available in the electronic registry are not updated and they are not available to the stakeholders for inspection.
2. And also due to not filing the requisite documents on time the LLPs and their designated partners are liable for criminal prosecution and the said LLPs cannot be closed till all the compliances are completed.
3. To promote ease of doing business and to serve as a complaint LLP in future it has been decided to give a onetime relaxation in additional fees to the defaulting LLPs.
4. As per the above circular additional fee of Rs 10/- per day has to be additionally paid if any prescribed form under the circular has not been filed or registered and the payment o such additional fee shall not exceed Rs 5000/- per document.
5. The above additional fees have been completely waived of 2020 vide circular 13/2020 dated 30-03-2020.
6. The documents prescribed by the MCA in its circular are as follows:

7. This scheme shall not apply to LLPs which made application in Form 24 to the registrar, for striking off its name from the register as per the provisions of LLP Rules, 2009.
8. The defaulting LLPs which have filed their pending documents till 13th June, 2020 and made good the default, shall not be subjected to prosecution by Registrar for such defaults. The earlier date of 13th June, 2020 has been substituted by 31st august, 2020 vide circular 13/2020 dated 30-03-2020.
9. On the conclusion of scheme i.e. after 30thSeptember, 2020 the registrar shall take necessary action under the LLP Act, 2008 against the LLPs which have not availed this scheme and are in default in filing of documents as required under the provisions of LLP Act, 2008 in a timely manner.