Central Government u/s 460 of the Companies act, 2013 vide Gazette Notification No. G.S.R. 59(E) dated 30th January 2020 u/s 67(2) of LLP Act, 2008 introduced a scheme namely ‘LLP SETTLEMENT SCHEME, 2020’ by allowing a one-time condonation of delay in filing statutorily required docs with the Registrar.
Meaning of LLP:
As per Section 2(n) of Limited Liability Partnership Act, 2008, an LLP means a partnership formed and registered under this Act.
As per Section 3 it is :
- A body corporate formed and incorporated under this Act and is a legal entity separate from that of its partners.
- A limited liability partnership shall have perpetual succession.
- Any change in the partners of a limited liability partnership shall not affect the existence, rights or liabilities of the LLP.
Issues that led to the birth of LLP SETTLEMENT SCHEME, 2020:
|Hustle of paying additional fees of INR 100/day for every day of delay u/s 69 in addition to any fees as is payable for filing such doc or return by defaulting LLPs.||Due to excessive financial burden, representations made for waiver of fee or condonation of delay and relaxation in additional fees.|
|Unavailability of records for inspection because of failure in filing statutory returns.||LLPs and designated partners were liable for criminal prosecution.|
|Unable to close LLPs until all compliances are completed.|
Birth of LLP SETTLEMENT SCHEME, 2020:
Central Government u/s 460 of the Companies act, 2013 vide Gazette Notification No. G.S.R. 59(E) dated 30th January, 2020 u/s 67(2) of LLP Act, 2008 introduced a scheme namely ‘LLP SETTLEMENT SCHEME, 2020’ by allowing a one time condonation of delay in filing statutorily required docs with the Registrar.
MCA vide its circular No. 6/2020 dated 4th March, 2020 clarified about the Scheme as follows:
1.Came into force
16th March, 2020 till 13th June, 2020.
Belated docs ( *Form-3, Form-4, Form 8, Form 11) to be filed by defaulted LLP which were due for filing till 31st October, 2019.
As per provisions of Rule 37(1) of LLP Rules, 2009, those LLPs which made an application in Form 24 to the Registrar for striking off its name from the register.
4.Manner of Payment of fees and additional fees
Defaulting LLPs have to pay an additional fees of INR 10/day for delay in addition to fees as applicable , payment of additional fees shall not exceed INR 5000/document.
Prosecution by Registrar against defaulting LLPs after 13th June , 2020.
- Form 3 for LLP Agreement and changes therein.
- Form 4 for Notice of appointment, cessation, change in name/address/designation of a designated partner/partner and consent to become a partner/designated partner.
- Form 8 for Statement of Account & Solvency.
- Form 11 for Annual Return of LLP.
- Form 11 for Annual Return of LLP