Ministry of Corporate Affairs on March 04, 2020 vide General Circular No. 6/2020 has announced LLP Settlement Scheme-2020-reg. ("Scheme") to give relief to the Limited Liability Partnerships (LLPs) which have defaulted in filing of certain LLP forms with the Registrar of Companies. Link to access the said circular is http://www.mca.gov.in/Ministry/pdf/GeneralCircular06_04032020.pdf.
This article is written with an intention to answer frequently asked questions in relation to the said scheme.
Q1. When the Scheme will come into force?
A: The Scheme will come into force with effect from March 16, 2020.
Q2. Till when the Scheme will remain in force?
A: The Scheme will remain in force with effect from March 16, 2020 to June 13, 2020.
Q3. What is the meaning of defaulting LLPs?
A: Defaulting LLPs means a LLP registered under the Limited Liability Partnership Act, 2008 ("LLP Act 2008) which has made a default in filing of documents on the due date(s) specified under the LLP Act, 2008 and rules made thereunder.
Q4. Which LLPs can avail the benefit under this scheme?
A: Any defaulting LLP is permitted to file belated documents/forms which were due for filing till October 31, 2019, can avail the benefits under this Scheme.
Q5. Which LLPs can not avail the benefit under this scheme?
A: 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.
Q6. This Scheme is applicable to which LLP forms?
A: The Scheme is available only in respect of filing of following LLP forms:
- Form 3- Information with regard to limited liability partnership agreement and changes, if any, made therein.
- 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.
- Form 8-Statement of Accounts and Solvency (Annual/Interim).
- Form 11- Annual Return of Limited Liability Partnership.
Q7: What are due dates to file LLP Form 3, Form 4, Form 8 and Form 11?
A: Due dates are as follows:
|
LLP form No. |
Due date as per LLP Act, 2008 and rules made there under |
|
Form 3- Initial LLP agreement |
Within 30 days from the date of Incorporation of a LLP [Pursuant to rule 21(1) & (2) of Limited Liability Partnership Rules, 2009]. |
|
Form 3- Changes made to LLP agreement |
Within 30 days from the date of entering into the supplemental agreement pursuant to change in the LLP agreement [Pursuant to rule 21(1) & (2) of Limited Liability Partnership Rules, 2009]. |
|
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. |
Within 30 days from the date of appointment, cessation, change in name/address/designation of a designated partner or partner and consent to become a designated partner/partner [Pursuant to rule 8, 10(8), 22(2) and 22(3) of Limited Liability Partnership Rules, 2009]. |
|
Form 11- Annual Return of Limited Liability Partnership |
Within 60 days from the closure of the its financial year. For LLPs closing financial year on March 31 the due date will be May 30 of that year [Pursuant to rule 25(1) of Limited Liability Partnership Rules, 2009] |
|
Form 8- Statement of Accounts and Solvency (Annual) |
Within a period of 30 days from the end of six months of the financial year. For LLPs closing financial year on March 31 the due date will be October 30 of that year [Pursuant to rule 24 of Limited Liability Partnership Rules, 2009]. |
Q8. What are the benefits available under the Scheme?
A: An additional fee of Rs. 100/- per day for the period of delay is applicable to the defaulting LLPs. Under this scheme relaxation in additional filing fees for certain LLP forms is extended to such defaulting LLPs. If the defaulting LLPs make the filings during the period of this Scheme, additional fees of Rs. 10/- per day for the period of delay will be levied, subject to the maximum limit of Rs. 5,000/-.
Below are the few examples for better understanding:
|
LLP Form No. |
Due Date |
Number of delay in days |
Additional fees payable (calculated upto March 17, 2020) in Rs. |
Additional fees under Scheme (calculated upto March 17, 2020) in Rs. |
|
Example 1 |
||||
|
8-Statement of Account & Solvency |
30/10/2019 |
139 |
13,900 |
1,390 |
|
Example 2 |
||||
|
8-Statement of Account & Solvency |
30/10/2017 |
869 |
86,900 |
5,000 |
|
Example 3 |
||||
|
Form 3- for change in LLP agreement |
30/11/2019 |
108 |
10,800 |
No relaxation available as the due date to file form is after 31/10/2019 |
Q9. Are only monetary benefits given under this Scheme?
A: No. Under this Scheme, the defaulting LLPs, which have filed their pending documents till June 13, 2020 i.e. under the validity period of this Scheme, shall not be subjected to prosecution by the Registrar for such default. Hence immunity from prosecution is also given under this Scheme.
Q10. Partners of ABC LLP has approved the striking off the name of the LLP from the Register, can they LLP avail benefits of this Scheme?
A: Yes, ABC LLP can avail the benefits of this Scheme. The Scheme shall not apply to the LLPs which have made an application in form 24 to the Registrar for striking off the name of the LLP from register. As ABC LLP has not filed form 24 yet, it can avail the benefits.
Q11. What if a defaulting LLP do not make the filing of pending documents by June 13, 2020?
A: If a defaulting LLP do not make the filing of pending documents, additional fees of Rs. 100/- per day for the period of delay will be applicable. Also, on the conclusion of the Scheme, the Registrar shall take necessary actions under the LLP Act, 2008 against the LLPs which have not availed the Scheme and are in default in filing of documents as required under the provisions of LLP Act 2008, in a timely manner.
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LLP Act, 2008: http://www.mca.gov.in/Ministry/actsbills/pdf/LLP_Act_2008_15jan2009.pdf
LLP Rules, 2009: https://www.mca.gov.in/LLP/pdf/LLPRulesasnotified.pdf
The author can also be reached at anupriya@jmja.in
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