Amidst low GDP estimates, tanking share market, and growing danger of coronavirus, there is finally something to cheer about. As a part of ongoing initiatives to improve ease of doing business, the Ministry of Corporate Affairs (MCA) has introduced an amnesty scheme under the Limited Liability Partnership Act, 2008 – “THE LLP SETTLEMENT SCHEME 2020”
The scheme brings a huge relief to those thousands of LLPs who have defaulted in the filing of various forms with the Registrar of Companies.
Synopsis of the scheme:
- Applicability: The scheme applies to every defaulting LLP who was required to file Form with ROC as of 31st October 2019.
- Reduction in the current penalty from Rs.100/- per day to Rs.10/ per day, subject to a maximum of Rs.5,000/- per filing.
- Immunity from prosecution attracted for committing various defaults under the LLP Act 2008.
- Forms eligible under Settlement Scheme:
- Form 3 – LLP agreement and changes thereof
- Form 4 – Appointment, cessation, change in name/address/ designation of the designated partner
- Form 8 – Statement of Account & Solvency (annual or interim)
- Form 11 – Annual Return of LLP
- Period for application: The settlement scheme shall be in force for the period 16th March 2020 and 13th June 2020.
- Ineligible: The scheme shall not apply to LLPs which have made an application for closure in Form 24.
This is an excellent opportunity for the defaulting LLPs to come out clean and regularise their filings by paying the lowest penalties. On the conclusion of the scheme, the Registrar shall take necessary action against defaulting LLPs.
Here is the quick link to the official circular: https://www.mca.gov.in/Ministry/pdf/GeneralCircular06_04032020.pdf
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