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LLP Modified Settlement Scheme, 2020 – One time opportunity to make good all your past defaults

Home / LLP Modified Settlement Scheme, 2020 – One time opportunity to make good all your past defaults

LLP Modified Settlement Scheme, 2020 – One time opportunity to make good all your past defaults

LLP Modified Settlement Scheme, 2020

The Ministry of Corporate Affairs had introduced a settlement scheme for Limited Liability Partnership (LLP) wherein they allowed delayed filing of forms by LLP with additional fee limit capped to Rs. 5,000/- This was to be in effect from 16th of March, 2020 till 13.06.2020. This settlement scheme was introduced with the intent to promote compliances among the LLP who failed to file the form within due time and to provide one time opportunity to complete the pending compliances with less fees.

However, a new LLP Modified Settlement Scheme, 2020 (LMSS, 2020) was introduced vide circular no. 13/2020 dated 30.03.3030 by modifying the aforesaid existing settlement scheme, wherein opportunity has been provided to complete the compliances which are due till 31.08.2020 without payment of additional fee. This is like a boon in the Covid-19 pandemic situation for the LLP’s to complete all its charges without paying any additional fees and waiver of per day penalty. A very good endeavour of Central Government to promote completion of all pending compliances by LLP at normal fees.

So, let understand the pros and cons of the boon LMSS 2020 as provided by the Government:

 

Eligibility Criteria

The LLP Modified Scheme is applicable to all Defaulting LLP. Defaulting LLP means all LLP who have made default in filing forms. In other words, forms are due for filing but the same has not been filed by the LLP.

However, such forms can only be filed by the LLP only if the status of LLP is active at MCA portal. The following LLP cannot avail the benefit of LLP Settlement Scheme unless their status is changed to active:

  • ♦ LLP under the process of striking off
  • ♦ LLP Struck off /Defunct LLP
  • ♦ LLP which has filled Form 24 for striking off its name
 

Which forms can be filed

The following forms which are due till 31.08.2020 and have not been filed by the LLP can be filed under the LLP Modified Settlement Scheme:

  1. Form-3: Filing of new/modified LLP Agreement
  2. Form-4: Filing of notice for appointment/ resignation / change in designation of Designated Partner / Partner or consent to become Designated Partner / Partner
  3. Form-5: Notice for change in name
  4. Form-8: Filing of Statement of Accounts and Solvency
  5. Form-11: Annual Return of LLP
  6. Form-12: Intimation of Address for Service of Documents
  7. Form-15: Change of Registered office
  8. Form-22: Filing of Order of Court/ Tribunal/ CLB/ Central Government
  9. Form-23: Application for direction to Limited Liability Partnership (LLP) to change its name
  10. Form-27: Form for filing of registration of particulars by foreign LLP
  11. Form-29: Form to be filed by Foreign LLP
  12. Form-31: Application for compounding of Offence

Payment of Fees

The person availing benefit under the scheme is required to make payment of only normal fees. No additional fee or penalty shall be levied for all forms which are due till 31.08.2020 and the same has been filed on or before 30.09.2020. This is a remarkable opportunity provided by the Ministry of Corporate Affairs and all the business owners who avail this will monetise their business profits.

Immunity Certificate

Every LLP who is filing forms till 30th September, 2020 will automatically be covered under LLP Modified Settlement Scheme. Such LLP are not required to file Form CFSS after 30th September, 2020 to get immunity under the said scheme. Form CFSS is to be filed only by the Companies availing the benefit of CFSS Scheme and not by the LLP.

Further, no indemnity bond is required to be filed for availing the immunity under LMSS.

Benefits of filing under LMSS, 2020

The benefit of one time opportunity provided under LMSS, 2020 are as follows:

  1. No additional fee shall be levied on belated forms or belated documents
  2. No prosecution shall be initiated against non filing of such documents
  3. No penalty shall be imposed for non filing or delay in filing of belated documents
  4. No fees shall be charged to avail the immunity under LMSS, 2020.
  5. Cost and Time saviour

This shall also help in completing the compliances making all the LLP duly complied with all the provision of law at minimal cost.

Conclusion

The LMSS, 2020 is one of the golden opportunity provided by the Government which will make all defaults or non-compliances related to belated filing of documents duly good  and that too on payment of Government fees only. In case you need any assistance or help in completing your LLP compliances, you can contact us @+91-8010233173 or @+91-7838657554 or email us the details @complianceship@gmail.com.

  
Disclaimer: This Blog/ Post/ Article or Content etc. is made available by the ComplianceShip solely for educational purpose and to give general information of a particular topic or updates and an understanding of the law, not intending to provide specific legal advice, by using this, you understand that there is no attorney client relationship between us.

 

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