The penalty for delayed filing or non-filing for the abovementioned forms was set at Rs, 100/ per day by the LLP Act. However, it turned out to be a huge financial burden on the entrepreneurs and hence fueled further delays in such Filing.

LLP’s have been defaulting mainly in the following manner:

  • Filing of LLP Agreement (FORM-3)
  • Filing of Annual Returns (Form LLP-11)
  • Filing of Statement of accounts and solvency statement (Form LLP-8)

Keeping this in mind the Central Govt. has launched the LLP SETTLEMENT, 2020 to offer a one-time settlement scheme to all the defaulting LLP’s in order to allow them to regularise their pending filings.

Following are the features of the LLP Settlement Scheme:

  • The window to avail this scheme starts on 16 March 2020 and ends on 13 June 2020.
  • Defaulting LLP’s can file there pending documents which supposed to be filed till 31 October 2019.
  • Additional Fees is reduced to Rs. 10 (instead of Rs 100/-) per day.
  • Maximum additional Fees is Rs. 5000/- per document.
  • No prosecution shall be brought against defaulting LLP’s which avail this scheme within the stipulated time.
  • This scheme is applicable to the delayed filing of LLP-11, LLP-3, LLP-8 and LLP-4
  • This scheme is not applicable on LLP which has filed for strike off in Form 24.