LLP settlement Scheme – 2020

After dispute resolution scheme by CBIC and CBDT, now MCA has also come up with its dispute resolution scheme under LLP act.

As per MCA its been a decade when LLP act was first introduced however still people are not much aware about LLP act and many people are not filing all the forms required in LLP act regularly because of which the database of LLP registrar is not updated.

Hence they have mentioned that “As part of Government’s constant efforts to promote ease of doing business it has been decided to give a One time relaxation in additional fees to the defaulting LLPs to make good their default by filing pending documents and to serve as a compliant LLP in future.”

The above scheme shall be in force from 16.03.2020 to 13.06.2020.

Applicability:

This scheme shall apply to all the forms which were pending to be filed on 31.10.2019 which includes:

• Form-3- Information with regard to limited liability partnership agreement and changes, if any
• Form-4- Notice of appointment, cessation, change in name/ address/ designation of a designated partner or partner and consent to become a partner/ designated partner
• Form-8; Statement of Account & Solvency (Annual or Interim)
• Form-11- Annual Return of Limited Liability Partnership (LLP)

Fees for opting this scheme:

The defaulting LLPs may themselves avail of the scheme for filing documents which have not been filed or registered in time on payment of additional fee Rs 10 – per day for delay in addition to any fee as is payable for filing of such document or return, provided that such payment of additional fee shall not exceed Rs. 5,000 – per document.

Immunity:

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.

Defaulting Person who doesn’t opt for this scheme till due date:

On the conclusion of the Scheme, 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.

You can read the full scheme HERE.

After looking at the scheme this looks more like an additional fees rather than settlement.

 

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