1 . What is LLP Settlement Scheme 2020?

“LLP Settlement Scheme, 2020?? is a scheme to provide the default LLPs with a One Time relaxation in addition to additional payments by filing pending documents viz. Form Nos 3, 4, 8 and 11 and to serve as a compliant LLP in the future.

2. What is the Objective of the LLP Settlement Scheme 2020?

As part of the Government’s ongoing efforts to encourage ease of doing business, the Ministry of Corporate Affairs has agreed to implement a scheme called ‘ LLP Settlement Scheme, 2020, ‘ allowing for a one-time cancelation of the delay in filing statutory documents with the Registrar

3.Whether this (LLP Settlement) Scheme is permanent?

No. This is one-time relaxation, as part of the ongoing efforts of the government to encourage business-friendliness, it has been agreed to offer the default LLPs a One-time relaxation in addition to additional fees to make up their default by filing other pending documents and acting as a compliant LLP in the future.

4. What is the time period of this Scheme?

The scheme will come into force on March 16, 2020, and will remain in operation until June 13, 2020 (including both days).

5. What is defaulting LLP as per the Scheme?

“Defaulting LLP” means an LLP registered under the Limited Liability Partnership Act, 2008, which failed to file documents on the due date(s) set out in the LLP Act, 2008 and the rules made therein.

6. Whether an LLP is required to apply to the Registrar in order to avail the Scheme?

No, the defaulting LLPs may themselves avail of the scheme for filing documents that have not been filed or registered in time on payment of additional fees and statutory fees.

7. What shall be the manner of payment of fees and an additional fees are to be charged for filing a late petition to seek protection under the Scheme?

Under the scheme, the LLP shall pay statutory filing fees as specified by the LLP Act and the rules laid down therein along with an additional fee of Rs 10 per day, provided that such additional fee payment does not exceed Rs 5,000/- per document.

8. Whether the additional fee of Rs. 10 per day is aggregate or individual for all forms? 

Rs 10 additional fee per day is charged per document and not in total. Thus, if there is a delay of 300 days for one form and 330 days for another form, then Rs. 3,000 will be applied for the form in which the delay is 300 days and Rs. 3,300 for another form in which the delay is 330 days.

9. Whether the cap of Rs. The 5,000/-Additional fee is for all forms in aggregate or individually?

Cap for an additional fee of Rs 5,000 is applicable per document and not an aggregate. Thus, if there is a delay of 900 days, then the additional fee for the form at the rate of Rs. 10 per day will be Rs. 9,000 which is more than Rs. 5,000 and therefore the additional fee will be Rs. 5,000 for the form.

10. What filing shall the Scheme refer to?

This Scheme Shall be applicable only on filing these following documents

• Form-3-Details about the Limited Liability Partnership Agreement and changes made therein, if any;
• Form-4- Notice of appointment, termination, change in name/ address/ designation of a designated partner or partner and consent to become a partner/ designated partner;
• Form-S; Statement of Account & Solvency (Annual or Interim);
• Form-11- Annual Return of Limited Liability Partnership (LLP).

 11. Is the scheme applicable for delay in the submission of any form applicable to LLP?

 No. This Scheme shall not be applicable to any form other than Form No. 3, Form No. 4, Form No. 8 and Form No. 11.

12. For which LLPs this Scheme is not applicable?

This scheme shall not apply to LLPs which have made an application to the Registrar in Form 24 for the deletion of their name from the Register pursuant to Rule 37(1) of the LLP Rules of 2009.

13. Documents for which period in the past the default LLP is allowed to file?

‘ Defaulting LLP ‘ is permitted to file late documents that were due for filing until 31 October 2019 in accordance with the provisions of this Scheme.

 14. Is there any immunity from prosecution for documents filed under the scheme?

Yeah, the defaulting LLPs, which filed their pending documents until June 13, 2020, and fixed the default, will not be charged for such defaults by Registrar.

15. What action should Registrar take on the default LLPs which have not availed this Scheme after the conclusion of the same?

At the completion of the Scheme, the Registrar shall take the appropriate action under the LLP Act, 2008 against the LLPs who have not taken advantage of this Scheme and are in default in the timely filing of documents as required by the provisions of the LLP Act, 2008. Registrar can bring litigation against the defaulting LLPs for such defaults.

Latest Updates

• Navigating GST Changes: 5 Essential Updates on E-Way Bill and E-Invoice
  Navigating GST Changes: 5 Essential Updates on E-Way Bill and E-Invoice As we step into the new financial year 2025-26, businesses must gear up for key compliance changes in GST, particularly concerning E-Invoicing and E-Way Bills. These aren’t just procedural formalities—they’re critical documents that validate tax liability and the movement of […]
• Pros and Cons of Presumptive Taxation Scheme for Professionals
  Pros and Cons of Presumptive Taxation Scheme for Professionals To reduce the compliance burden for small professionals, the Income Tax Act introduced the Presumptive Taxation Scheme under Section 44ADA. This scheme is especially useful for professionals like doctors, lawyers, architects, engineers, and others specified under Section 44AA. What is Section 44ADA? […]
• Understanding Form 3CD Amendments: What Changed from April 1, 2025
  Understanding Form 3CD Amendments: What Changed from April 1, 2025 The Central Board of Direct Taxes (CBDT), via Notification No. 23/2025 dated March 28, 2025, has introduced key amendments to Form 3CD under the Income-tax Rules, 1962. These changes come into effect for all tax audit reports signed on or after […]
• GST Compliance Checklist for Financial Year 2025-26
  GST Compliance Checklist for Financial Year 2025-26 Strategic Review & Action Plan for Businesses As the new financial year 2025–26 begins, businesses must undertake a comprehensive introspection of their GST compliance framework. This includes both substantive law changes and procedural reforms. With several amendments becoming effective from April 1, 2025, aligning […]
• Mutual Funds and Stocks: Understanding Capital Gains Tax Implications in 2025
  Mutual Funds and Stocks: Understanding Capital Gains Tax Implications in 2025 Investing in mutual funds and stocks is a time-tested route to building wealth. However, returns from these assets attract capital gains tax, and staying informed about tax rules is crucial to avoid unexpected liabilities. As of 2025, the tax landscape for investors […]
• Income Tax Return 2025: What’s New in the ITR-2 Filing Process for AY 2025-26
  Income Tax Return 2025: What’s New in the ITR-2 Filing Process for AY 2025-26 As the new financial year kicks off, it also marks the beginning of the much-anticipated tax filing season for Assessment Year (AY) 2025-26, covering income earned during Financial Year (FY) 2024-25. The Income Tax Department has made […]
• GST Amendments 2025: Impact and Implications from April 1
  GST Amendments 2025: Impact and Implications from April 1 As the Goods and Services Tax (GST) regime approaches its eighth anniversary since its launch on July 1, 2017, the framework continues to evolve in response to compliance needs, technological advancements, and stakeholder feedback. The latest amendments coming into effect from April […]
• Impact of New Income Tax Slabs and TDS Thresholds Effective April 1, 2025
  Impact of New Income Tax Slabs and TDS Thresholds Effective April 1, 2025 Starting April 1, 2025, significant changes in income tax slabs under the new regime and TDS deduction thresholds have been introduced. These revisions will impact all taxpayers, offering relief in certain areas while adjusting tax liabilities in others. […]
• Why GST Registration is Essential for Indian Startups
  Why GST Registration is Essential for Indian Startups Starting a business in India offers immense opportunities, but it also comes with regulatory responsibilities. Among them, Goods and Services Tax (GST) registration is a fundamental requirement. Beyond legal compliance, GST registration provides various advantages that contribute to a startup’s growth and sustainability.  Ensuring Compliance […]
• Form 10F E-Filing: Addressing Common Challenges and Concerns
  Form 10F E-Filing: Addressing Common Challenges and Concerns The Indian Income Tax Act mandates tax deduction on certain payments made to non-residents. To avail tax treaty benefits, non-residents must provide essential documents like a Tax Residency Certificate (TRC) and Form 10F. Previously, these documents were submitted physically to the Indian payer […]