What if You Don’t File LLP Returns for 3 Years?

Introduction

LLP annual filing in India may seem like a routine task. But if you skip it for three straight years, it turns into a serious problem. In this blog, we’ll break down what exactly happens, how bad the penalties get, and what it means for you as a partner.

What Filings Does Every LLP in India Have to Do Each Year?  

If you’re running a Limited Liability Partnership (LLP), you’re expected to file two main forms every year:

Even if your LLP didn’t earn a rupee last year, these forms still need to be filed.

What Really Happens If You Don’t File for 3 Years?  

Let’s break this down simply:

1. Late Filing Penalty Keeps Adding Up  

• MCA charges ₹100 per day per form.

• There’s no upper limit.

• Over 3 years, that could easily cross ₹50,000–₹1 lakh, even more if both forms are missed every year.

2. LLP Gets Tagged as “Defaulting”  

Your LLP status on the MCA website turns into a red flag. This can seriously hurt when applying for loans, pitching to clients, or even trying to sell your business.

3. MCA Can Strike Off Your LLP  

Yes, the Registrar of Companies has the power to remove your LLP from official records. This happens under Rule 37 of LLP Rules if there’s no filing for 3 consecutive years.

4. Partners Can’t Escape Liability  

Even if the LLP is struck off, partners remain responsible. You may still get legal notices or payment demands for anything that happened before the strike-off.

What Legal Power Does MCA Use to Strike Off an LLP?  

Under Section 75 of the LLP Act, if an LLP is not carrying on any business and fails to file returns, the ROC can issue a notice and strike off the name.

Here’s what the MCA does:

• Notices you haven’t filed returns in 3 years

• Issues a show-cause notice

• If you don’t respond or regularize filings, they proceed to strike off

• Your LLP disappears from MCA records

Once this happens, your business is legally non-existent, even if you’re still operating informally.

Is There Any Way to Revive a Struck-Off LLP?  

Yes, but it’s not as easy as filing a few forms. You’ll need to:

• Approach the National Company Law Tribunal (NCLT)

• Explain why you didn’t file and show intent to continue business

• Clear all past filings (Form 8, Form 11, ITRs)

• Pay all penalties and late fees

Timeline: Around 3–6 months
Estimated cost: ₹30,000 to ₹1.5 lakh+ (including legal and professional fees)

So, yes, revival is possible, but it’s expensive, slow, and not guaranteed unless everything checks out.

Why Filing Is Mandatory Even If Your LLP Is Dormant?

Many LLPs think “we didn’t do any business, so filing isn’t needed.” That’s false.

Here’s why you still need to file:

• MCA needs to know your LLP is alive

• Avoids unnecessary penalties and complications later

• Keeps partners protected from future liabilities

Filing with nil returns is much better than reviving a dead LLP later.

Real-World Scenario: How One of the LLPs Got Struck Off ?

A Pune-based boutique consulting LLP didn’t earn any revenue for 3 years. They thought filing wasn’t needed and ignored MCA reminders. One day, their LLP got struck off. When they landed a new client and tried to issue an invoice, they couldn’t. No PAN access, no bank updates, and clients pulled out.

They ended up spending over ₹80,000 to revive the LLP; and lost two months of work.

Conclusion  

LLP annual filing in India isn’t just a paperwork ritual. Missing it for 3 years brings serious consequences; hefty fines, legal risks, and even strike-off. It’s always better to stay compliant than to deal with revival hassles. Whether your LLP is active or not, stay on top of LLP Form 8 and Form 11 every year.

Suggested Read :

LLP Return Filing: Forms, Process & Penalties
FAQs on LLP Annual Filing
LLP Filing for Startups & Challenges
Compliance Filing Before LLP Closure

FAQs  on Non Filing of LLP Returns

1. What’s the deadline for LLP annual filing in India each year?
Form 11 is due by 30th May, and Form 8 by 30th October.

2. Is it mandatory to file even if the LLP has no turnover?
Yes, filings are mandatory even for nil activity.

3. How much penalty builds up for 3 years of non-filing?
₹100 per day per form with no cap; can easily cross ₹50,000–₹1 lakh.

4. Can the LLP be revived after 3 years of default?
Yes, but only through NCLT and full compliance with late filings.

5. What does MCA do if an LLP doesn’t file for 3 years?
They may issue a notice and strike off the LLP under Rule 37.

6. Do partners become personally liable if the LLP is struck off?
Yes, they are still responsible for any past obligations.

7. Will I get warnings from MCA before strike-off?
Yes, usually via email and public notice, but action can proceed if ignored.

8. Can I regularize my LLP before it gets struck off?
Yes, file all pending forms with penalties and restore active status.

9. What happens to the LLP PAN and bank account after strike-off?
The PAN is still there but flagged inactive; banks may freeze or restrict use.

10. Do I need a CA or CS to help with late filing or revival?
It’s highly recommended; procedures are technical and require expertise.