LLP SETTLEMENT SCHEME, 2020

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LLP SETTLEMENT SCHEME, 2020

Ø  Background:-

The Ministry of Corporate Affairs (MCA) has launched the Limited Liability Partnership LLP Settlement Scheme, 2020. The Period of the scheme as under

Scheme Commencement date
16th March,2020
Scheme End date
13th June,2020


It has been observed that due to applicability of additional fee on late filing, which in case of inordinate delay could actually become a financial burden, a large number of Limited Liability Partnerships (LLPs) have remained non-compliant, mainly on account of their inability to pay late fees for the cumulative period of delay.

As part of Government’s constant efforts to promote ease of doing business, it has been decided to give a One-time relaxation in an additional fee to the defaulting LLPs to make good their default by filing pending documents and to serve as a compliant LLP in future. Accordingly, the Central Government 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.

Ø  Applicability: -

Defaulting LLP: Any “defaulting LLP” is permitted to file belated documents, which were due for filing till 31st October, 2019 in accordance with the provisions of this Scheme. i.e. Forms that are due till 31st October,2019 can only be considered for the said scheme.

“Defaulting LLP” means 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.

Ø  Specified Forms: -

(i.) Form-3- Information with regard to limited liability partnership agreement and changes, if any, made therein;
(ii.) 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;
(iii.) Form-8 - Statement of Account & Solvency (Annual or Interim);
(iv.) Form-11- Annual Return of Limited Liability Partnership (LLP).



Ø   Additional Fee/Penalty:-

The defaulting LLPs may file forms by making payment of additional fees of INR 10/- per day for each day during which the default continues (instead of INR 100/- for each day of such delay in addition to any fee as is payable as per section 69 of Limited Liability Partnership Act, 2008) subject to a maximum of  INR 5,000/- per Form.

Ø  Scheme not apply:-

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.

Ø   Immunity from prosecution:-


The defaulting LLPs, which have filed their pending Forms till 13th June, 2020 and made good the default, shall not be subjected to prosecution by Registrar for such defaults.

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