• Deepak Sharma

LLP Settlement Scheme 2020: ZERO Additional fee for Form 8 and Form 11 of your LLP.

Updated LLP Settlement Scheme 2020, Modified LLP Settlement Scheme 2020, Zero Additional Fee for filing off LLP Form 8 and LLP Form 11


Limited Liability Partnerships provides features of a Partnership and a Company both to owners, The main feature of LLP is that it provide limited liability protection to partners. Limited Liability Partnerships are regulated under The Limited Liability Partnership Act, 2008 by Ministry of Corporate Affairs. LLPs are considered as an alternative corporate entity that provides the benefit of limited liability protection and also allow flexibility to manage organisation structure, LLPs become a popular option for Small business partnerships.


Limited Liability Partnerships registered under The Limited Liability Partnership Act, 2008 are bound to comply with Act and various rules made there under, LLPs registered under India are required to furnish various forms and information to designated Registrar of Companies in electronic mode .

Every LLP require to file annual return and Statement of Account & Solvency every year, If any LLP Failed to file annual return and statement of Account & Solvency within prescribed time, it may file such documents with an additional fee for one hundred rupees for every day of such delay. We can understand it with following example: ABC LLP delayed filing of Statement of Account & Solvency by 30 days, Additional fee will be 30*100= 3000.


A large number of LLPs have defaulted in filing of FORM 8 and FORM 11, Ministry of Corporate Affairs decided to give a onetime relaxation in additional fee to the defaulting LLPs to make them compliant. The Central Government in exercise of its power u/s 460 of the Companies Act, 2013 (extended to LLPs vide Gazette Notification No. G.S.R. 59 (E) Dated 30th January, 2020 u/s 67 (2) of the Limited Liability Partnership Act, 2008) has decided to introduce a scheme namely "LLP Settlement Scheme, 2020", by allowing a One-time condonation of delay in filing statutorily required documents with the Registrar.


Due to COVID-19 threat Ministry provided extra relief by reducing additional fee to ZERO rupee from 5000 through an additional modification circular to the scheme on 30th March 2020.

Key Features of LLP Settlement Scheme, 2020 (Updated on 30/03/2020)


  • Scheme Duration : 01st April, 2020 to 30th September, 2020

  • Defaulting LLP: Defaulting LLP means a LLP registered under the Limited Liability Partnership Act, 2008 which has made a default in filing of documents on the due date(s) specified under the LLP Act, 2008 and rules made there under.

  • Applicability : Any "defaulting LLP" is permitted to file belated documents, which were due for filing till 31st August, 2020 in accordance with the provisions of this Scheme.

  • Benefit in Scheme/Manner of Payment of Fee: : The defaulting LLPs may themselves avail of the scheme for filing documents which have not been filed or registered in time on payment of fee as payable for filing of such documents or return. Provided that no additional fees shall be payble for filing any belated documents under this scheme.

  • No Prosecution: The defaulting LLPs, which have filed their pending documents till 30th September 2020 and made good the default, shall not be subjected to prosecution by Registrar for such defaults.

  • Forms covered in this Scheme.

Form 3 : Information with regard to 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


Form 11: Annual Return of Limited Liability Partnership (LLP)


  • This Scheme shall not apply to LLPs which has made an application in Form 24 to the Registrar, for striking off its name from the register as per provisions of Rule 37(1) of the LLP Rules, 2009.


With this scheme government providing huge relief to defaulting LLPs and also giving a chance to become compliant and avoid prosecution under the provisions of LLP Act, 2008 in timely manner. Lawfox provide a complete compliance solution for your LLP, our services include annual and event based ROC compliances, Income tax compliance and GST compliance. Contact us on Lawfoxin@gmail.com or 08949540261 for filing of your LLP Forms

Circular for Modification to LLP Settlement Scheme 2020

Incorporatin of LLP

Filing of LLP Forms with ROC

 

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