Modified LLP Settlement Scheme- A one-time opportunity for defaulter LLPs for clearing their pending filings without any late fees and legal proceedings

Modified LLP Settlement Scheme- A one-time opportunity for defaulter LLPs for clearing their pending filings without any late fees and legal proceedings

What is Modified LLP Settlement Scheme 2020

 

Ministry of Corporate affairs has notified the modified LLP Settlement Scheme 2020 to provide a one-time opportunity for the defaulting Limited Liability Partnerships registered in India to file their pending returns and document without any late/additional fees and also to provide immunity from all legal proceedings in related to those pending filings.

 

Who can avail the benefit of the scheme?

Any defaulting LLPs whose returns and filing under LLP Act, 2008 are pending to be filed are permitted to file those belated forms/documents without any late/additional fees, under the scheme.

Period of the scheme

The Scheme shall remain in force from April 1, 2020 till September 30, 2020.

Benefits of opting the Scheme

  • No additional fees applicable for pending filings
  • Granting of Immunity from the Penalty and Prosecution under LLP Act for pending filings of forms included under the scheme

Applicability of the scheme

Following are the common/ most important forms can be filed under the scheme

  • Form-3 (Changes related to LLP agreement)
  • Form 4 (Changes in partners/designated partners)
  • Form-8 (Annual statement of accounts)
  • Form-11 (LLP annual return)
  • Form-5 (Change in registered office)
  • Form-5 (Change of name)

In addition to the above, Form 22, Form 12, Form 31 and Form 29 also can be filed under the scheme

Non applicability of the scheme

The scheme shall not be applicable for the LLPs which has already applied for Voluntary Strike Off by filing Form 24

Consequence of not opting for the scheme

If you are a defaulter and you are not opting the scheme and clearing all pending filing requirements, you may face the following consequences:

  • Late fees of Rs 100 per day for pending compliances may shoot up to Lakhs without any upper limit.
  • Registrar may strike off your LLP
  • Prosecution and penalties under LLP Act on the LLP, partners and designated partners.

Please contact us to know more :www.jaksllp.com

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