What is Strike Off for LLPs
Strike off for LLPs refers to the process of legally dissolving a non-operational LLP. It is initiated when the partners decide to close the LLP due to inactivity, no future business plans, or to avoid unnecessary compliance. It removes the LLP’s name from the official records of the Ministry of Corporate Affairs (MCA), thereby ending all compliance obligations.
When Can an LLP Apply for Strike Off
An LLP can apply for strike off when it has:
- Not carried on any business since incorporation, or
- Not been in operation for at least one year before applying for closure.
The LLP should ensure it has no outstanding liabilities, and all partners must agree to the closure.
Key Conditions for Voluntary Strike Off of LLP
To proceed with voluntary strike off, the following conditions must be met:
- LLP is inactive for 1 year or more.
- There are no pending debts, dues, or legal proceedings.
- Consent of all partners is obtained.
- Latest Income Tax Return (if filed) and Statement of Accounts (not older than 30 days) are prepared.
- LLP has filed all overdue returns (Form 8 & Form 11) till the date of application.
Circumstances Where Strike Off is Not Allowed
An LLP cannot apply for strike off in the following cases:
- The LLP has pending legal disputes or court cases.
- There are outstanding liabilities or dues towards creditors or government departments.
- The LLP has not filed overdue statutory returns like Form 8 or Form 11.
- Any ongoing investigation or regulatory proceedings are pending against the LLP.
- The LLP has recently undertaken any business transactions or operations.
Step-by-Step Process to Strike Off an LLP
- Step 1: Convene a meeting of partners: Pass a resolution with mutual consent to strike off the LLP. Ensure all partners are in agreement.
- Step 2: Clear liabilities and close bank accounts: Before applying, settle any outstanding dues and close all operational bank accounts.
- Step 3: Prepare necessary documents: These include consent of partners, indemnity bond, affidavit, ITR (if filed), and latest Statement of Accounts.
- Step 4: File Form 24 with MCA: Submit the application for strike off in Form 24 along with all supporting documents to the Registrar of Companies.
- Step 5: Wait for approval and publication: If the application is found in order, the ROC will publish a notice and strike off the LLP from its records.
Documents Required for LLP Strike Off
- Form 24 Application: Duly filled and signed by a designated partner.
- Consent of Partners: Written consent from all existing partners approving the closure.
- Statement of Accounts: Financial statement certified by a Chartered Accountant, not older than 30 days.
- Affidavit and Indemnity Bond: Signed by all partners to confirm there are no liabilities or legal issues.
- ITR Acknowledgement: Copy of the latest Income Tax Return filed, if applicable.
- LLP Agreement: A copy of the original LLP agreement and any subsequent amendments.
- NOC from Authorities: No Objection Certificate from any sectoral regulator, if required.
- Partners’ Resolution: Formal resolution passed by all partners approving the strike off application.
Timeline for LLP Strike Off Process
| Stage | Estimated Time |
| Document preparation and resolution | 7 to 10 working days |
| Filing of Form 24 with ROC | 1 to 2 working days |
| ROC review and processing | 60 to 90 days |
| Final approval and publication | Within 90 to 120 days (total time) |
Government Fees and Cost Involved
The strike off process is cost-effective, but certain professional and government charges are involved.
| Particulars | Approximate Cost |
| Government fees for Form 24 filing | ₹100 |
| Notarization of affidavit and bond | ₹300 to ₹500 per partner |
| Chartered Accountant certification | ₹1,000 to ₹2,000 |
| Professional assistance (optional) | ₹3,000 to ₹7,000 depending on service provider |
| Total estimated cost | ₹5,000 to ₹10,000 |
Consequences of Strike Off
Once an LLP is struck off, the following consequences apply:
- LLP ceases to exist legally: It is removed from the MCA records and cannot operate further.
- No further compliance required: Partners are relieved from filing returns or maintaining statutory records.
- Assets and liabilities freeze: Any undisclosed liabilities may later be recoverable from partners personally.
- Bank accounts get closed: All operational accounts linked to the LLP must be deactivated.
- Name becomes unavailable: The LLP name cannot be reused without prior approval from MCA.
Can an LLP Be Revived After Strike Off
Yes, a struck-off LLP can be revived by filing an application with the National Company Law Tribunal (NCLT). Revival is allowed if:
- The LLP was struck off wrongly or without valid reasons
- The application is made within 20 years from the date of strike off
- Justifiable cause and documentary evidence are submitted
Revival involves legal procedures and requires NCLT’s approval.
How EbizFiling Can Help with LLP Strike Off
EbizFiling offers complete support for LLP strike off, making the process simple and hassle-free:
- Expert guidance: Our professionals help assess eligibility and advise on compliance.
- Document drafting: We prepare affidavits, indemnity bonds, and other required paperwork.
- Form 24 filing: End-to-end assistance in filing the application with the MCA.
- Affordable pricing: Transparent fees for document preparation and government filing.
- Status updates: Timely follow-ups with the Registrar of Companies and real-time updates.
Conclusion
Closing an LLP through strike off is a legal and straightforward way to exit if your business is inactive. With proper documentation and professional guidance, the process can be completed smoothly. EbizFiling can help you handle the entire process efficiently and in compliance with MCA rules.
Suggested Read :
Process to Change the LLP Agreement
Partner vs Designated Partner in LLP
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