LLP Strike off, Strike off LLP name, winding up of LLP, Close LLP, Ebizfiling, E-form 24

LLP Strike off Procedure in India

Introduction

Striking off an LLP (Limited Liability Partnership) in India is a legal way to close down a business that is no longer active or operational. The process is governed by the Ministry of Corporate Affairs (MCA) and involves filing necessary forms and documents. This blog will walk you through the step-by-step LLP strike off procedure in India, making it easy to understand and follow. Whether your LLP is dormant or inactive, knowing how to close it legally is important to avoid future penalties.

What is an LLP Strike Off?

An LLP Strike Off is the official process of removing the name of a Limited Liability Partnership (LLP) from the register of the Ministry of Corporate Affairs (MCA). This means the authorities have legally closed the LLP, and it no longer exists as a business entity. Businesses generally use this process when the LLP is inactive, has no operations, or wants to shut down voluntarily without going through complex winding-up procedures. Once struck off, the LLP cannot carry out any business activities unless the authorities restore it.

Ways to Strike Off an LLP

There are two main ways to strike off an LLP in India, depending on the circumstances:

1. Voluntary Strike Off by LLP (Suo Moto by Partners)

This is when the partners themselves apply to close the LLP. It can be done if:

  • The LLP is not carrying on any business or operations for at least one year.
  • It has no outstanding liabilities.
  • All compliance filings are complete (e.g., Form 8, Form 11, and ITRs).
  • The partners pass a resolution and file Form 24 with necessary documents.

2. Strike Off by Registrar (Compulsory Strike Off)

The Registrar of Companies (ROC) can strike off an LLP if:

  • The LLP is not carrying on business for two or more years.
  • It has defaulted in filing statutory returns or documents.
  • The ROC sends a notice, and if it does not receive a response within the prescribed time, it can strike off the LLP under Rule 37 of the LLP Rules, 2009.

We offer quick and reliable Strike off LLP and LLP Annual Return Filing services, ensuring full compliance with MCA rules and helping you avoid penalties.

Process of Strike Off an LLP

As there are two ways of striking of an LLP, the process of striking off is depends on the way of striking off the LLP. Below, we are mentioning the process of both ways to strike off an LLP.

Voluntary Strike Off Process

The partners initiate this when the LLP is inactive and they wish to close it legally.

Step 1: Hold a meeting – Partners pass a resolution to strike off the LLP.
Step 2: Clear Liabilities – Ensure all debts and dues are paid off.
Step 3: Prepare Documents – Draft affidavits, indemnity bonds, and prepare a statement of accounts.
Step 4: File pending returns – Submit form 8, form 11, and ITR if they are pending to submit.
Step 5: File Form 24 with MCA – File Form 24 with MCA with required document.
Step 6: MCA review and public notice – ROC reviews and publishes notice inviting objections.
Step 7: Striking Off – If no one raises an objection, the MCA strikes off the LLP from its records.

Compulsory Strike Off Process

Step 1: Identify Non-Compliance – LLP has not filed forms or carried on business for two or more years.
Step 2: Notice by ROC – Registrar issues a notice to the LLP and its partners as per the Rule 37 of LLP Rules, 2009.
Step 3: Opportunity to respond – LLP may respond or regularize compliance.
Step 4: No response or justification – If the LLP fails to reply or rectify defaults, ROC will proceed further.
Step 5: Publication of Notice – ROC publishes a notice of intended strike off.
Step 6: Striking Off – After no objections, ROC strikes off the LLP and updates the register.

Required Documents for closing an LLP

  • Form 24 : This is the main form to be filed with the MCA for striking off the LLP.
  • Application Letter : A formal application requesting the strike off, signed by all designated partners.
  • Board Resolution / Consent of Partners : A resolution or consent letter from all partners approving the strike-off.
  • Affidavit by Partners : Each partner must submit an affidavit declaring that the LLP has no liabilities and is not carrying on any business.
  • Indemnity Bond : A bond stating that any future liabilities after the strike-off will be borne by the partners.
  • Statement of Accounts : Certified by a Chartered Accountant, showing the LLP has no assets or liabilities (not older than 30 days from the filing date).
  • Income Tax Return Acknowledgment : A copy of the latest ITR filed, if applicable.
  • LLP Agreement : A copy of the initial LLP agreement and any amendments made to it.
  • Consent of Creditors (if any) : Written consent from creditors, if the LLP has any.

Conclusion

Striking off an LLP in India is a straightforward process if the business is inactive and has met all compliance requirements. Whether you opt for a voluntary closure or the ROC initiates it, following the proper LLP strike off procedure helps avoid future penalties and legal hassles. Ensure all necessary documents are filed correctly with the Ministry of Corporate Affairs (MCA) for a smooth exit. Understanding the process makes it easier for partners to legally close an LLP and maintain good standing with regulatory authorities.

Suggested Read :

Process to Change the LLP Agreement

What is LLP Form 4?

Purpose of Form 8 LLP

 LLP Strike-off & Winding up

Partner vs Designated Partner in LLP

FAQ

1. What is the difference between voluntary and compulsory strike off of an LLP?

Voluntary strike off is initiated by the LLP’s partners when it is inactive and has no liabilities, while compulsory strike off is done by the Registrar of Companies when an LLP defaults in compliance for two or more years.

2. When can an LLP apply for strike off in India?

An LLP can apply for strike off if it has not carried out any business for at least one year and has no outstanding dues or liabilities.

3. Why is it important to strike off an inactive LLP?

It is important to strike off an inactive LLP to avoid accumulating penalties for non-compliance and to legally close the business from MCA records.

4. How can I apply for strike off of an LLP in India?

You can apply by filing Form 24 with the Ministry of Corporate Affairs along with the required documents, such as affidavits, indemnity bonds, and a statement of accounts.

5. Where do I file the documents for LLP strike off?

ALl documents for LLP strike off must be file online on the MCA portal along with Form 24, as part of the official strike off procedure.

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