LLP settlement Scheme, 2020 for submitting pending documents

As non-compliance or late filing of statutory forms with MCA was liable for an additional fee, it was becoming a huge financial burden on Limited Liability Partnership (LLP). The government has introduced a one-time settlement scheme for Limited Liability Partnerships (LLPs) for condonation of delay in filing statutory documents by LLPs.The Ministry of Corporate Affairs (MCA) has decided to give a one-time relaxation in additional fee to the defaulting LLPs to make good their default by filing pending documents and to serve as a compliant LLP in future.

The silent feature of the scheme is as follows

• The scheme will be in force from 16-03-2020 to 13-06-2020
• It would permit a "one-time condonation of delay in filing statutorily required documents" with the Registrar of Companies.
• The LLP concerned has to pay a nominal additional fee of Rs 10 per day for the period of delay as well as any actual fee that is to be paid for submitting the document. The additional fee per document would be capped at Rs 5,000/-. That means the additional fees of Rs. 100 per day is reduced to mere Rs. 10 per day. While there was no upper limit of additional fees which keep on rising by Rs. 100 per day Now it is capped Rs. 5000/- per Form
• The scheme is applicable for defaulting LLP who has not filed return which were due for filing till 31 st Oct 2019. Which means that if a LLP form 3 or LLP Form 4, whose due date falls post-October 31, 2019, and is not filed by LLP may still attract additional fees of Rs. 100 per day post due date.
• The defaulting LLPs, which have filed their pending documents till 13th June 2020 and made good the default, shall not be subjected to prosecution by Registrar for such defaults.
• The scheme is applies to filing of Following documents only 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 (Annual or Interim); Form-11 - Annual Return of Limited Liability Partnership (LLP).
• 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 (Annual or Interim);
• 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.
• What if LLP does not file pending forms under the scheme? on the conclusion of the Scheme, the additional fees would be back to Rs. 100 and it will have no upper cap post expiry of scheme. Further, it is expected that ROC may start crackdown at LLP post completion of scheme. LLP may see next round of cleaning/striking off just like Companies have faced in past 2-3 years.

We at Balakrishna and Co. offers LLP compliance services including annual LLP compliance service. For more information on LLP compliance service get in touch with us at This email address is being protected from spambots. You need JavaScript enabled to view it. or through WhatsApp message

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