LLP Modified Settlement Scheme, 2020

The Ministry of Corporate Affairs introduced a settlement scheme for Limited Liability Partnership (LLP) to allow the delayed filing of forms with an additional fee limit capped at Rs. 5,000/-, effective from 16th March 2020 until 13th June 2020. The scheme aimed to promote compliance among LLPs who failed to file the form within due time and provide a one-time opportunity to complete pending compliances with lower fees.

However, the Ministry of Corporate Affairs introduced a new LLP Modified Settlement Scheme, 2020 (LMSS, 2020) to modify the existing settlement scheme, allowing completion of due compliances until 31st August 2020 without payment of an additional fee, providing a boon in the Covid-19 pandemic situation for LLPs to complete all their charges without paying any additional fees and waiver of per day penalty. This is an excellent endeavor by the Central Government to promote the completion of all pending compliances by LLPs at normal fees. So, let’s 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 LLPs. Defaulting LLP means all LLP who has made default in filing forms. In other words, forms are due for filing but have not been filed by the LLP.

However, such forms can only be filed by the LLP only if the status of the LLP is active at the MCA portal. The following LLP cannot avail of the benefit of the 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 by 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 due by 31st August 2020, and the same has been filed on or before 30th September 2020.

Immunity Certificate

Every LLP filing form till 30th September 2020 will automatically be covered under the LLP Modified Settlement Scheme, and no indemnity bond is required to be filed for avail immunity under LMSS.

Benefits of filing under LMSS, 2020

The benefit of the one-time opportunity provided under LMSS, 2020 is 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 of the immunity under LMSS, 2020.
5. Cost and Time savior

This shall also help in completing the compliances making all the LLPs duly comply with all the provisions of the law at a minimal cost.

Conclusion

The LMSS, 2020 is one of the golden opportunities 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 at @+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 purposes and to give general information on 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.