LLP- One time condonation of delay in filing LLP Documents-LLP Settlement Scheme 2020

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 :-