What is the Process for LLP Strike Off with Inactive Bank Accounts?
1. Closure of Bank Account
Obtain a bank closure certificate or letter confirming the account’s closure.
2. Settlement of All Dues
Ensure there are no outstanding dues or filings with MCA, Income Tax, or GST departments.
3. Consent of Partners
Pass a resolution among partners agreeing to close the LLP.
4. Preparation of Documents
Prepare the following documents:
- PAN card of the LLP
- LLP Agreement and amendments (if any)
- Bank closure certificate
- Affidavits and indemnity bonds from partners
- Consent of all partners
- Latest Income Tax Return (if filed)
- No objection certificate from creditors (if applicable)
- Statement of accounts not older than 30 days, certified by a Chartered Accountant
- Digital Signature Certificate (DSC) of designated partners
5. Filing Form 24
Submit Form 24 to MCA with the required attachments. Form 24 is used for the application for striking off the name of the LLP.
6. MCA Review and Approval
After verification, MCA will publish a notice and approve the strike-off if all conditions are met.
Benefits of LLP Strike Off with Closed Bank Accounts
- No Future Penalties: Avoid fines for non-compliance or failure to file returns.
- Ends Legal Responsibilities: Partners are no longer accountable for LLP liabilities.
- Prevents Account Misuse: Inactive accounts are a risk for fraud.
- Improves Credit Record: Ensures a clean financial history for promoters.
What are the Challenges in LLP Strike Off?
- Non-Closure of Bank Accounts: Application gets rejected if accounts are not closed.
- Pending ROC Filings: All annual filings must be updated.
- Inactive DSCs of Partners: DSCs must be active during filing.
- Lack of Clarity in Financial Statements: Accounts must be clear and up to date.
What Happens if You Do Not Close an Inactive LLP?
| Issue | Impact |
|---|---|
| Non-compliance with MCA | Penalty of ₹100/day till compliance |
| Liability on Partners | Personal legal responsibility |
| Difficulty in Future Ventures | Bad legal standing |
| MCA Restrictions | May not allow future company formation |
Fees for LLP Strike Off (Indicative)
| Particulars | Cost (Approx.) |
|---|---|
| Government filing fee (Form 24) | ₹0 (As per MCA) |
| Professional assistance | ₹3,000 to ₹8,000 |
| Notarization, affidavit & legal docs | ₹1,000 to ₹2,000 |
Note: Fees may vary based on professional assistance and city.
Real-life Example
A Mumbai-based LLP ceased operations in 2021 but kept its bank account open. While applying for strike-off in 2024, MCA rejected the application due to the open account. After closing the account and resubmitting the application with a bank closure letter, the strike-off was approved within 30 days.
How to Ensure Successful LLP Strike Off?
- Close the Bank Account: Obtain closure proof from the bank.
- Update All ROC and Tax Filings: Ensure all filings are up to date.
- Clear Pending GST or TDS Dues: Settle any outstanding dues.
- File Form 24 with All Documents: Submit a complete application.
- Consult a Professional: Seek guidance for accurate compliance.
Conclusion
Striking off an LLP with inactive bank accounts requires careful attention to compliance. Closing the bank account is a mandatory first step. Filing the right documents with Form 24 and clearing all pending dues ensures that the LLP is legally closed without any future liabilities. Always verify details on the official portal of MCA.
Suggested Read :
How to Avoid LLP Strike-Off When No Tax Return is Filed?
How LLP Strike Off Impacts Creditors and Debtors?
FAQ
1. Can I strike off an LLP with an open bank account?
No, the LLP must close all its bank accounts before applying.
2. What is the role of Form 24 in LLP strike off?
Form 24 is used to formally request MCA to remove the LLP from its records.
3. Do we need to file Income Tax Returns before strike off?
Yes, if applicable, the latest return must be filed.
4. Is it mandatory to submit a bank closure letter?
Yes, the MCA requires a certificate or letter confirming bank closure.
5. What if one of the partners is unavailable during the process?
You need consent and affidavits from all partners. MCA may reject otherwise.
6. Can an LLP with pending GST returns apply for strike off?
No, all GST returns and dues must be cleared first.
7. How long does it take for an LLP strike off to complete?
It usually takes 30–90 days after filing, if all documents are proper.
8. Can I reopen an LLP after strike off?
No, once struck off, the LLP ceases to exist.
9. Are there any government fees for Form 24?
There is no filing fee for Form 24 as per MCA guidelines.
10. What if MCA rejects my application?
You need to fix the issues and reapply with correct documents.
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