MCA Update: LLP settlement Scheme, 2020
MCA has introduced LLP Settlement Scheme, 2020. Through the Scheme, One-Time relaxation in additional fees has been provided to the defaulting LLPs to make their default good by filing pending documents with the ROC and to serve as a compliant LLP in future.
The defaulting LLP’s may themselves avail the scheme by filing documents which were not filed or registered on time by payment of additional fee of INR 10/- per day in addition to the nominal fee which is payable for filing of such document or return, provided that such payment of additional fee shall not exceed Rs. 5,000/- per document.
Validity- This scheme shall come into force on 16th March, 2020 up to 13th June, 2020.
Cut off Dates: Defaulting LLP is permitted to file belated documents, which were due to filing till 31st October, 2019.
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.
Impact on the existing LLP’s: Big relaxation has been provided to the existing LLP’s which has not filed their Annual Returns/Annual Accounts/LLP Agreement with the Registrar of Companies till date. There was excessive financial burden on the LLP’s to pay additional fees of INR 100/- per day if they missed out to file any of the Returns with the Registrar of Companies. Before this, there was no waiver of fee or condonation of delay and relaxations in additional fee on the excessive financial burden of additional fees. Through the availment of scheme, the existing LLP’s which has missed to file any Return/Form with the ROC can file Return with the additional fees of INR 10/- per day instead of paying INR 100/- per day.
Relevant link from the Ministry of Corporate Affairs is given below: