LLP Settlement Scheme – 2020

Reading Time: 2 minutes

1. What is the LLP Settlement Scheme, 2020?

LLP Settlement Scheme, 2020 is a scheme to give a One Time Relaxation in Additional Fees to the defaulting LLPs to make good their default by filing pending documents and to serve as a compliant LLP in future.

2. How is the Scheme Beneficial for the Existing LLP?

Under this scheme, LLP who has made default in filing of forms or documents can avail this scheme and enjoy immunity from any prosecution under the LLP Act and can also make good such default by filing any belated returns as applicable under LLP ACT, 2008 by payment of normal fees without any additional fees.

3. What is the Time frame of the Scheme?

The Scheme shall remain effective up to 30th September 2020.

4. What shall be the filing fees and additional fees for filing documents under the Scheme?

The defaulting LLPs may themselves avail the scheme for filing documents that may not have been filed earlier under the LLP Act,2008 on payment of normal fees as payable for filing of such return or document and no additional fees shall be payable for filing any belated returns or documents under the scheme.

5. Which forms are covered under this Scheme?

All the forms and documents as required under the LLP ACT, 2008 are covered in the Scheme.

6. What will be the Penalty and Prosecution Provision post the expiry of this Scheme?

Post the expiry of this scheme, the regular late filing penalty of Rs.100 per form per day as prescribed under the LLP Act, 2008 will persist – leading to higher penalty and prosecution by the Registrar.

How can InCorp Advisory assist you in this Scheme?

Our specialized legal team at InCorp makes a detailed study of all the non-compliances attracted under the LLP Act, 2008 for the LLP. Based on the study, abiding by the provisions of the scheme, our team assists the LLP with the list of compliances to be completed with the procedure for the same under this Scheme. Therefore, InCorp shall guide you end to end through the process of making a compliant LLP under the LLP Act, 2008

For assistance on the LLP Settlement Scheme, do get in touch with us today.
For further references the circular is available at the following link:
http://www.mca.gov.in/Ministry/pdf/GeneralCircular06_04032020.pdf