Allows one-time condonation of delay in filing statutory documents
The Centre has decided to introduce a new scheme — LLP Settlement Scheme 2020 — to help non-compliant Limited Liability Partnership (LLP) firms turn compliant and enable ‘ease of doing business’ for such entities.
This scheme would provide a one-time relaxation in additional fee to the defaulting LLPs to make good their default by allowing filing of pending documents and help them serve as a compliant LLP in future.
The scheme will come into force on March 16, 2020 and remain in force up to June 13, 2020, an official release said. It would be applicable to a “defaulting LLP” for filing documents, which were due for filing till October 31, 2019, on payment of a nominal additional fee of ₹10 per day for the period of delay.
This government move comes in the wake of several LLPs defaulting in filing statutory documents and their inability to correct the situation owing to the financial burden arising from the inordinate delays in statutory compliance, the release added.
A large number of LLPs have remained non-compliant, mainly on account of their inability to pay late fees for the cumulative period of delay.