LLP Settlement Scheme 2020
As a part of Government’s constant efforts towards promoting ease of doing business in India, Ministry of Corporate Affairs had launched a scheme called as the LLP Settlement Scheme 2020, which allowed defaulting Limited Liability Partnership to clear all their pending ROC returns without being subject to additional late fees. The scheme was further revised on 30th March 2020 where in additional relaxations have been provided for it to align better with the Companies Fresh Start Scheme 2020.
What does the LLP Settlement Scheme 2020 offer?
The notified scheme offers a one-time opportunity to file all belated documents or forms relating to your Limited Liability Partnership. Now, as per the updated circular, all the pending documents or forms could be filed without any late fees. Following are the benefits the scheme provides:
- One-time waiver of all late fees for belated ROC returns
- Immunity of prosecution in respect of documents filed
Who can take advantage of LLP Settlement Scheme 2020?
Any Limited Liability Partnership which has defaulted in filing of any documents which were required to be filed under the Limited Liability Partnership Act 2008 and rules made thereunder are eligible to opt for this scheme.
Are Companies covered under LLP Settlement Scheme 2020?
No, Companies are not covered under Limited Liability Partnership Settlement Scheme 2020 but there is a very similar scheme for all defaulting companies called as Companies LLP Settlement Scheme 2020.
What this scheme doesn’t cover and who cannot avail this scheme?
The non-applicability section has been updated and as per the latest circular Limited Liability Partnerships which have applied for strike off via Form 24 are not eligible to opt for this scheme.
How to take advantage of this scheme?
This has been a long time demand from stakeholders around the country who were not able to file their returns on time and had piled up huge amount of late fees. The LLP Settlement Scheme is a golden opportunity for all Limited Liability Partnerships which are in default for non-filing and to become complaint again. To take advantage of the scheme please file all your belated returns and the late fees shall be waived off, and the scheme also promises immunity of prosecution for the belated forms filed within 30th September 2020.
I had not file DIR3 KYC and my DIN is deactivated, can I file DIR 3 KYC without being subject to late fees?
Yes there won’t be any late fees for filing DIR 3 KYC to activate your Director Application Number.
Till when is this Scheme open?
The scheme shall remain open from 1st April 2020 to 30th September 2020
Want to file your pending returns? Having any queries for the same?
Call us at +91-7008804070 and ask for expert assistance.