All about LLP Settlement Scheme 2020

All about LLP Settlement Scheme 2020

Ministry of Corporate Affairs (MCA) has introduced a One-time condonation of delay in filing statutorily required documents with the Registrar in relation to LLPs. This scheme is applicable for LLPs who have defaulted in filing of LLP E-Form 3,4,8 & 11.

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

DEFAULTING LLP” means a 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 there under.

Payment of additional fee Rs 10/- per day for delay in addition to any fee as is payable for filing of such document or return, provided that such payment of additional fee shall not exceed Rs. 5,000/- per document.

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.

Scheme not to apply to certain documents-

(a ) This Scheme shall not apply to the filing of documents except the following documents:-

(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.

Please find the complete notification at this link. To regularize defaulted filing for your LLP, you can contact us on +91 9860843333 or email us at sameer@taxskill.com  

A guide to eForm INC 22A – Active Company Tagging and Verification

An Introduction to INC 22 and INC 22A

As Per Notification G.S.R 250 (E) dated 31st March, 2014 and In exercise of powers conferred by sub-sections ( i ) of section 3 of part II of Extraordinary of the Gazette of India, eForm INC-22 was introduced which made it mandatory for over 12 Lakh Active Companies Registered in India to upload all their particulars including details of registered offices in an e-filing to the government.

E-Form INC-22 is required to be filed pursuant to Section 12 (2) & 12 (4) of the Companies Act, 2013 and rule 25 & 27 of the Companies (Incorporation) Rules, 2014. The company is required to furnish to the Registrar verification of its registered office in eForm INC-22 within a period of thirty days from the date of its incorporation. The company can also specify the address of registered office at the time of filing incorporation eForms. For this, the applicant shall upload eForm INC-22 as linked form to eForm INC-7. In case of One Person Company, the particulars of the registered office address can be filed in eForm INC-2 only. And any change in situation of the registered office thereafter, the company is required to notify to Registrar in eForm INC-22 within fifteen days of such change.

In INC-22, the company is required to submit the following information:
• Proof of registered office address (Conveyance/ Lease deed/ Rent Agreement etc. along with the rent receipts is required to be attached).
• Copies of the utility bills (proof of evidence of any utility service like telephone, gas ,electricity etc. depicting the address of the premises not older than two months is required to be attached).
• Proof that the company is permitted to use the address as the registered office of the Company ……….

(Authorization from the owner or occupant of the premises along with proof of ownership or occupancy and it is mandatory if registered office is owned by any other entity/ person (not taken on lease by company). Any other information can be provided as an optional attachment(s).

If INC-22 is not pertained with then, Once a company is marked as ACTIVE non-compliant, it would not be able to make changes to its capital structure or go ahead with merger or amalgamation deals.
New rule has been inserted in Companies Incorporation Rules, 2014 under Verification of Registered Office.
Rule 25A states that-Every company Incorporated on or before the 31st December, 2017 shall file the particulars of the company and its registered office in e-form ACTIVE (Active Company Tagging Identities and Verification) on or before 25.04.2019.

G.S.R. (E)..- ln exercise of the powers conferred by sub-section (9) of section 12 and subsection’s (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2O13), the Government has introduced e-form INC 22A which is also known as e-Form ACTIVE (Active Company Tagging Identities and Verification). Through notification on 21 February 2019, MCA has introduced The Companies (Incorporation) Amendment Rules, 2019. The due date for filing this Form is 25th April 2019.

 

Applicability of Form INC-22A (Active) :

• Every Company which is incorporated on or before 31 December 2017.
• However, Companies whose Financial Statements or Annual Return or both are due not will be able to file ACTIVE form but with the exception for under dispute companies which includes-
• Striked off Companies;
• Companies which are under the process of Striking off;
• Companies under Amalgamation;
• Companies under Liquidation.

There is no government fee / ROC Fee if the form is filed within its due date. However, in case the company misses the date of 25th April 2019. Then the same can still be filed with an Additional ROC Fee of Rs. 10,000 only.

In INC-22A, the company is required to submit the following information:

1. Name of the Company and CIN
2. Registered Address of the Company
3. Two Photograph of the registered office of the company. The first photo of the registered office shall be taken from outside of the premises, whereas the second photo needs to be taken from within the registered office premises showing at least one director / KMP who shall be signing the e-form INC-22A.
4. Location of registered office on Map defining Latitude / Longitude
5. Email for OTP verification
6. Details of:
o Directors, DIN, and Status of DIN
o Statutory Auditor (PAN, Firm number, Period of Appointment etc)
o Cost Auditor (if applicable)
o Company Secretary (if applicable)
o CEO or Managing Director
o CFO (if applicable)
o SRN Number of AOC 4 / MGT 7 For FY 17-18.
7. Following Companies will not be allowed by Ministry of Corporate Affairs to file this e-form Active are.:-
i. Company which has not filed its due financial statements under Section 137 i.e. Not Filled AOC-4
ii. Company which has not filled its Annual Returns under section 92 i.e. Not Filled MGT-7
iii. A company who’s any of the director/s has not filled DIR 3 KYC form or is disqualified under section 164 of the Companies Act, 2013.

Consequences of Late / Non Filing of Form INC-22A (Active).
• The company will have to pay the penalty of 10,000/- if filed the form is filled after 25 April 2019.
• Company shall be marked as “Active – Non-Compliant” in the MCA Master data and such a company shall not be able to do any transaction.

Filing of following e-forms will be barred: –
• SH-7 (for change in authorized capital)
• PAS-3 (for change in paid-up capital)
• DIR-12 (for change in Director except for cessation)
• INC-22 (for change in Registered Office)
• INC-28 (for Amalgamation /Demerger)

Non-compliant companies would not be able to rotate their directors or make changes in their registered office.

In case of any queries, please write in to us at sameer@taxskill.com