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Know all about LLP Amnesty Scheme, 2020

Know all about LLP Amnesty Scheme, 2020

LLP Settlement Scheme, 2020 is being introduced in order to provide a single-window to defaulting LLPs that have failed to abide by the statutory compliance window in the past.

Applicability:

  • The scheme shall be effective from March 16, 2020, till June 13, 2020.
  • Defaulting LLPs are covered that are registered under the LLP Act, 2008 and have defaulted in the filing of certain documents before ROC till October 31, 2019.
  • A nominal additional fee of INR 10/- per day for the period of delay, subject to a maximum amount of INR 5,000/- as the additional fee per document.

Type of Forms covered:

The Scheme shall apply to the following overdue documents:

  • Form-3–Limited liability partnership agreement and changes, if any, made therein;
  • 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;
  • Form-8– Statement of account & solvency (Annual or Interim); and
  • Form-11– Annual Return.

Non-applicability:

The Scheme shall not apply to the filing of the following documents:-

  • LLPs that have applied Form 24 with ROC for name strike off from the register
  • LLPs that defaulted in filing documents after October 31st, 2019.

Benefits under the Scheme:

Defaulting LLPs opting for the Scheme shall be entitled to the following benefits:

  • No criminal prosecution by Registrar on the covered defaults;
  • The concessional penalty of only INR10 per day as against the earlier penalty of INR 100 per day for each day of delay;
  • Capping of penalty to a maximum of INR 5,000. This is especially beneficial to defaulting LLPs that have not filed their documents for years.

HOW ASC Group can support?

  • Our experienced managers can support in availing benefits under the LLP Amnesty Scheme, 2020.
  • Our secretarial team provides customized and practical solutions for all corporate law related matters.

 

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