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.


https://www.thehindubusinessline.com/economy/policy/centre-rolls-out-llp-settlement-scheme/article30980844.ece

http://www.mca.gov.in/Ministry/pdf/GeneralCircular06_04032020.pdf

Posted On: 04 MAR 2020 1:11PM by PIB Delhi

It has been observed that due to applicability of additional fee on late filing, which in case of inordinate delay could actually become a financial burden, a large number of Limited Liability Partnerships (LLPs) have remained non-compliant, mainly on account of their inability to pay late fees for the cumulative period of delay.

As part of Government’s constant efforts to promote ease of doing business  it has been decided to give a One-time relaxation in additional fee to the defaulting LLPs to make good their default by filing pending documents and to serve as a  compliant LLP in future.

Accordingly, the Central Government 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.

LLPs, that wish to avail themselves of the scheme, may file the pending documents/Forms and make good the defaults, to gain immunity from prosecutions for such defaults.

The Scheme shall come into force on the 16th March, 2020 and shall remain in force up to 13th June, 2020.  It would be applicable to a “defaulting LLP” for filing overdue documents, which were due for filing till 31st October, 2019 on a payment of a nominal additional fee of Rs 10/- per day for the period of delay, in addition to any fee as is payable for filing of such document or return, subject to a maximum amount of Rs. 5,000/- as additional fee per document.

The Scheme shall apply to the filing of the following documents:

  1. Form-3- Information with regard to limited liability partnership agreement and changes, if any, made therein; 

– 2 –

  1. Form-4- Notice of appointment, cessation, change in name/ address/designation of a designated partner or partner and consent to become a partner/designated partner;
  2. Form-8- Statement of Account & Solvency (Annual or Interim); and
  3. Form-11- Annual Return of Limited Liability Partnership (LLP).

The Scheme is being introduced in pursuance of the Government’s objective of providing greater Ease of Living to the citizens of the country and is expected to provide a significant relief and a window of opportunity for LLPs to abide by the Law & conduct business accordingly. https://pib.gov.in/PressReleseDetail.aspx?PRID=1605084

Press Trust of India Mar 04, 2020 19:51:22 IST

  • The LLP settlement Scheme, 2020 — to be in force from 16 March to 13 June — would permit a ‘one-time condonation of delay in filing statutorily required documents’ with the Registrar of Companies
  • LLPs are governed by the LLP Act, which is implemented by the corporate affairs ministry
  • There would be a one-time relaxation in additional fee for the defaulting LLPs to make good their default by filing pending documents

New Delhi: The government will come out with a one-time settlement scheme for Limited Liability Partnerships (LLPs) that will provide more time to submit their pending documents as well as immunity from prosecution for defaults.

The LLP settlement Scheme, 2020 — to be in force from 16 March to 13 June — would permit a “one-time condonation of delay in filing statutorily required documents” with the Registrar of Companies.

“LLPs, that wish to avail themselves of the scheme, may file the pending documents/ forms and make good the defaults, to gain immunity from prosecutions for such defaults,” the corporate affairs ministry said in a release on Wednesday.

LLPs are governed by the LLP Act, which is implemented by the ministry.

 Govt to bring one-time settlement scheme for LLPs; move will provide more time to submit pending documents

Representational image. Reuters

According to the release, it has been observed that due to applicability of additional fee on late filings, which in case of inordinate delay could actually become a financial burden, a large number of LLPs have remained non-compliant. This is mainly due to their inability to pay late fees for the cumulative period of delay.

There would be a one-time relaxation in additional fee for the defaulting LLPs to make good their default by filing pending documents.

The scheme would permit LLPs to submit their filings that were due till 31 October, 2019. The LLP concerned has to pay a nominal additional fee of Rs 10 per day for the period of delay as well as any fee that is to be paid for submitting a document. The additional fee per document would be capped at Rs 5,000.

As per the release, the scheme would be applicable for submission for four types of forms — 3, 4, 8 and 11 — by the LLPs.

Form-3 pertains to information about LLP agreement and changes while Form-4 relates to notice of appointment, cessation, change in name/ address/ designation of a designated partner or partner.

Form-8 is for statement of account and solvency (annual or interim), and Form-11 pertains to annual return of an LLP.

“The scheme is being introduced in pursuance of the government’s objective of providing greater ease of living to the citizens of the country and is expected to provide a significant relief and a window of opportunity for LLPs to abide by the law and conduct business accordingly,” the release said.

https://www.firstpost.com/business/govt-to-bring-one-time-settlement-scheme-for-llps-move-will-provide-more-time-to-submit-pending-documents-8118571.html