As per existing provision of Limited Liability Partnership Act, if the documents which are statutorily required to be filed are filed belatedly, an additional fee of Rs. 100/- per day till the date of filing is applicable.
Large number of LLPs have defaulted in filing Form 8 (Statement of Account and Insolvency) & Form 11 (Annual Return) and due to the higher penalty of Rs. 100/- per day, which results in a huge amount as penalty, many LLPs have requested for the condonation of delay in filing the forms.
As a one time measure, the Ministry of Corporate affairs has announced a One time condonation of delay in filing LLP forms.
The scheme is called as LLP Settlement Scheme , 2020
The salient features of this scheme are as follows :-
- The scheme shall be in force from 16th March 2020 to 13th June 2020
- The prescribed forms/documents which were due till 31st Oct 2019 can be filed using this scheme
- The additional fees payable shall be Rs. 10/- per day of defauly, subject to a maximum of Rs. 5000/-
- Immunity from prosecution will be provided to the forms/documents filed under this scheme
- Only the following forms can be filed in this Immunity scheme :-
- Form 3 – Information with regard to LLP Agreement and changes,if any
- Form 4 – Notice of appointment, cessation ,change in name/address/designation of a designated partner/partner
- Form 8 – Statement of Account & Insolvency
- Form 11 – LLP Annual Return
The relevant MCA notification is provided below :-