LLP Settlement scheme 2020 FAQ’s issued by ICAI

1. The Ministry of Corporate Affairs, as part of Government’s constant efforts to promote ease of doing business, has decided to introduce a scheme namely “LLP Settlement Scheme, 2020”, by allowing a One-time condonation of delay in filing statutorily required documents with the Registrar.

2. The scheme is not permanent. It is one-time relaxation, as part of Government’s constant efforts to promote ease of doing business it has been decided to give a Onetime relaxation in additional fees to the defaulting LLPs to make good their default by filing certain pending documents (Form Nos 3, 4, 8 and 11) and to serve as a compliant LLP in future. The time period of the Scheme shall come from 16th March, 2020 and shall remain effective up to 13th June, 2020 (both days inclusive).

3. 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 and statutory fee.

4. The LLP is not required to file an application to the Registrar to avail the 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 and statutory fee.  

5. The “Defaulting LLP” means an LLP registered under the Limited Liability Partnership 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. The “defaulting LLP” is permitted to file belated documents, which were due for filing till 31st October, 2019 in accordance with the provisions of this Scheme.

6. There is immunity from prosecution in respect of document(s) filed under the scheme, 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.

7. Under the scheme, the manner of payment of fees and the additional fee for the belated documents, the LLP shall pay  Statutory filing fees as prescribed under the LLP Act and rules along with an additional fee of Rs 10 per day, provided that such payment of additional fee shall not exceed Rs. 5,000/- per document. The Additional fee of Rs 10 per day is payable per document and not in aggregate. Thus, if there is a delay of 400 days for one form and 440 days for another form, then for the form where the delay is 400 days, an additional fee will be Rs. 4,000 and for another form where the delay is for 440 days, an additional fee will be Rs. 4,400.

8. 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. The defaulting LLPs may be subjected to prosecution by Registrar for such defaults.

To read the full text of the FAQ’s https://resource.cdn.icai.org/58719clcgc47796.pdf

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