LLP settlement Scheme launched, to allow one-time condonation of delay
New Delhi/UNI: As part of Government’s constant efforts to promote ease of doing business, the government has been decided to give a One-time relaxation in additional fee to the defaulting Limited Liability Partnerships to make good their default by filing pending documents and to serve as a compliant LLP in future.
'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 LLPs have remained non-compliant, mainly on account of their inability to pay late fees for the cumulative period of delay,' according to a Corporate Affairs ministry statement here on Wednesday.
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.
LLPs, that wish to avail themselves of the scheme, may file the pending documents/Forms and make good the defaults, to gain immunity from prosecutions for such defaults.The Scheme shall come into force on the March 16, 2020 and will remain in force up to June 13, 2020.
It would be applicable to a 'defaulting LLP' for filing overdue documents, which were due for filing till October 31, 2019 on a payment of a nominal additional fee of Rs 10 per day for the period of delay, in addition to any fee as is payable for filing of such document or return, subject to a maximum amount of Rs 5,000 as additional fee per document.
The Scheme is being introduced in pursuance of the Government’s objective of providing greater Ease of Living to the citizens of the country and is expected to provide a significant relief and a window of opportunity for LLPs to abide by the Law & conduct business accordingly.
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