LLP Settlement Scheme
The purpose of the LLP Settlement Scheme is to reduce the compliance burden on small businesses and give an opportunity to all the LLP which has defaulted in the past with respect to any ROC Filing.
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Overview
The purpose of the LLP Settlement Scheme is to reduce the compliance burden on small businesses and give an opportunity to all the LLP which has defaulted in the past with respect to any ROC Filing. This is an incredible amnesty scheme by MCA which allows a defaulting/inactive LLP to file all pending compliance related returns and documents in the MCA-21 portal without any additional fee and penalty.
Benefits
There are two major advantages of this scheme, first it allows a window of opportunity to file all pending returns like Old Form 3, Form 4, Form 11, Form 8 i.e. comply with the legal provisions of the Limited Liability Partnership Act, 2008. Secondly there is complete waiver of the additional fee, which is really a very big benefit to the small businesses. Apart from the two benefits the LLP and its designated partners are granted immunity from prosecution.
Timeline
The timeline of the scheme gives a window of six month from 1st April to 30the September 2020, within which the LLP should file all its pending returns.
