LLP One Time Settlement Scheme

LLP One Time Settlement Scheme


  1. It has been almost over a decade since LLP Act came into being. The Limited Liability Partnership (LLP) is viewed as an alternative corporate business vehicle that provides the benefits of Limited Liability but allows its members the flexibility of organizing their internal structure as a partnership based on a mutually arrived agreement. Owing to flexibility in its structure and operation, the LLP often become the preferred option for small enterprises. Lets see more about LLP One Time Settlement Scheme.
  2. It has come to the notice of Government that a large number of LLPs have defaulted in filing Form (3) viz. LLP Agreement and changes therein, Form-4 is for filing Notice of Appointment of Partner/ Designated Partner, his consent etc. and statutory return viz. Form-8- Statement of Account & Solvency (Annual or Interim) and Form-1l- Annual Return of LLP. In the event of requisite forms not being filed within prescribed time presently LLPs may file such documents on payment of additional fee for one hundred rupees for every day of such delay under Section 69 of the LLP Act in addition to any fee as is payable for filing of such document or return.
  3. Filing of all the above-mentioned documents are mandatory in nature and non-filing of the same will result in penalty and prosecution. Further, due to not filing the required documents on time the LLPs and their designated partners are liable for criminal prosecution and the said LLPs cannot be closed till all compliances are completed.
  4. As part of Government’s constant efforts to promote ease of doing business it has been decided to give a Onetime relaxation in additional fees to the defaulting LLPs to make good their default by filing pending documents and to serve as a compliant LLP in future. For this purpose, 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.

Now LLP registrations starts at 5,999 Rs only!

The details of the LLP One Time Settlement Scheme:

(a) (i.) This scheme shall come into force on the 16th March, 2020 and shall remain in force up to 13th June, 2020.

(ii.) Applicability: – Every LLP, for which filing of above mentioned forms are pending, is permitted to file belated documents, which were due for filing till 31st October, 2019 in accordance with the provisions of this Scheme:

(iii) Manner of Fee payable – The defaulting LLPs may themselves avail of the scheme for filing documents that have not been filed or registered in time by filing it now with ZERO additional fees.

(iv) Immunity from prosecution in respect of document(s) filed under the scheme – The defaulting LLPs, which have filed their pending documents till 13th June 2020 and made good the default, shall not be subjected to prosecution by Registrar for such defaults.

LLP Settlement Scheme Forms that can be filed:

(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).

(b.) 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.

On the conclusion of the Scheme, the Registrar shall take necessary action under the LLP Act, 2008 against the LLPs which have not availed this Scheme and are in default in filing of documents as required under the provisions of LLP Act, 2008 in a timely manner.

LLP Settlement Scheme Fees & Other requirements:

Form Professional Fees Documents needed
Form-3 Rs.2500/- Initial LLP Agreement or Supplementary/ amended LLP agreement containing changes
Form-4 Rs.2500/- 1.Consent to act as partner/designated partner

2.Partner Resignation form

Form-8 Rs.1500/- Details of Investment in other Limited companies and LLP’s.
Form-11 Rs.1500/- Copies of financial statements.

Please note that above mention fees is our professional fees and ROC filing charges are to be paid at actuals. We will provide copies of ROC Challans for the filing charges paid by you.

Both partners DSC were needed to file the form.

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