Strike Off LLP vs Dissolution of LLP

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1. Reason for Closure

Strike Off: when LLP is non-operational or inactive for a long period. Dissolution: Mutually decided by LLPs to shut down company permanently.

2. Governing Law

Strike Off: Regulated under Rule 37 of LLP Rules, 2009. Dissolution: Governed by Sections 63 to 65 of the LLP Act, 2008.

3. Initiated By

Strike Off:Can be initiated by the LLP or Registrar of Companies (ROC). Dissolution: Initiated by the partners through a formal process.

4. Winding Up Requirement

Strike Off: No need to wind up the LLP before applying. Dissolution: Requires a formal winding-up process(voluntary or by Tribunal).

5. Documentation

Strike Off: Requires Form 24, affidavits, indemnity bonds, and declarations. Dissolution: Requires forms like Form 6, Form 9, and final account statements.

6. Status After Closure

Strike Off: The struck-off LLP can be revived by NCLT under certain conditions. Dissolution: The LLP ceases to exist permanently and cannot be revived.

7. Time and Cost

Strike Off: Faster and more economical. Dissolution: Involves more time, procedures, and cost.

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Strike off a LLP Company