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.