LLP Settlement Scheme 2020 For defaulting LLPs

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LLP Settlement Scheme 2020 For defaulting LLPs

An LLP is a business arrangement whereby the liability held by each of the partners is limited by law. The LLP business vehicle is a legal entity having its existence independent from its partners where their rights and duties are determined in terms of the agreement between them, owing such flexibility in nature small enterprises preferred the LLPs.

 But large number of LLPs are not filing their statutory documents with the registrar in a timely manner due to which LLPs and their designated partners are liable for criminal prosecution and huge financial burden also imposed on them in the form of an additional fee and the LLPs cannot be closed till all compliances are completed.

 To overcome difficulty, the Government promulgated LLP Settlement Scheme 2020,  as a part of ease of doing business 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 complaint LLP in future.

 What is LLP Settlement scheme 2020-

 LLP Settlement Scheme – 2020 is a Onetime relaxation scheme for a waiver of additional fees to the defaulting LLPs to make good their default by filing pending documents and to serve as a compliant LLP in the future.

 Details of LLP Settlement Scheme – 2020

 This scheme shall come into force on the 16th March 2020 and shall remain in force up to 13th June 2020. 
  1. "Defaulting LLP" means an LLP registered under the Limited Liability Partnership Act, 2008 which has made a default in filing of documents on the due date(s) specified under the LLP Act, 2008 and rules made thereunder
  2. Any "defaulting LLP" is permitted to file belated documents, which were due for filing till 31st October 2019 in accordance with the provisions of this Scheme
Following documents can be filed under the scheme:
  • Form 3:  LLP Agreement and changes therein
  • Form 8: Statement of Account & Solvency (Annual or Interim)
  • Form 11: Annual Return of LLP.
  • Form-4 Notice of appointment, cessation, change in name/ address/ designation of designated partners and consent to become partner/designated partner
Scheme shall not apply on:

LLPs which has made an application in form 24 to the registrar for striking off its name from the register.


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