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LLP Closure Services in Surat

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    LLP Closure Services

    What is LLP Strike Off?

    LLP Strike Off refers to the process through which a lawful closure of an LLP takes place by settling the liabilities of the LLP, disposing of its assets, and taking its name off the register of companies. Therefore, once the LLP is struck off, it stands dissolved and cannot carry on any business. 

    What are the reasons for LLP Strike Off:

    Reasons on which LLP could be struck off include: 

    Inactivity for two Years:

    If the LLP remains inactive and has not carried out any business or filed necessary compliance forms for two consecutive years for filing Form 8 and Form 11.

    Closure on Voluntary basis:

    The closure of LLP is because the partners have resolved to do so as the LLP can no longer carry on business. 

    Types of Strike Off

    There are two ways a company can undergo strike off:

    • Strike Off by ROC (Section 248(1)): A business is removed from register of companies if it qualifies for strike off and is in the hands of the Registrar of Companies for removal.
    • Voluntary Strike Off by the Company (Section 248(2)): A company is permitted to seek strike off provided it adheres to the relevant procedure.

    Modes of LLP Strike Off:

    The process for voluntary strike off involves several steps:

    1. Compulsory Strike Off by ROC

    If one of the following conditions is satisfied, the Registrar of Companies (ROC) may compulsorily strike off. 

    • If the LLP has not filed Form 8 (Statement of Account and Solvency) and Form 11 (Annual Return) for two consecutive financial years. 
    • The ROC has reasonable grounds to believe that the LLP is not carrying on any business or operations. 

    Process: 

    1. The ROC sends a notice to the LLP about the intention to strike off its name. 
    2. The LLP has one month to respond with its representation. 
    3. If no response is received, the ROC proceeds with the strike-off process. 

    2. Voluntary Strike Off by LLP

    An LLP can apply for voluntary strike off by filing e-Form 24 with the RoC, provided all partners give their consent. 

    How to Voluntarily Strike Off an LLP?

    The process involves several key steps: 

    Step 1: Calling a Meeting of Partners

    1. The LLP must hold a meeting where partners pass a resolution to strike off the LLP.  2. A designated partner is authorized to file the application with the ROC. 

    Step 2: Settling Liabilities

    Before proceeding, the LLP must clear all outstanding liabilities, debts, and obligations. 

    Step 3: Filing Application with ROC

    The LLP must submit e-Form 24 along with the following documents: 

    1. Statement of Accounts (certified by a Chartered Accountant, not older than 30 days from the application date). 
    2. Copy of Latest Income Tax Return (if filed). 
    3. Copy of LLP Agreement (including any amendments). 
    4. Bank Account Closure Certificate (showing the closure of all LLP accounts). 
    5. Copy of Resolution Passed by LLP Partners (for strike off). 
    6. Affidavit from Partners (stating that the LLP has no liabilities or creditors). 
    7. Indemnity Bond (signed by all partners, ensuring no future liabilities). 
    8. Detailed Application (stating full details of the LLP and the reason for closure). 
    9. Authority to Make the Application (duly signed by all partners). 

    What Happens After Filing the Application?

    Once the ROC receives the application, the following steps take place: 

    1. Verification of Documents:

    The ROC reviews the submitted documents to ensure compliance. 

    2. Public Notice Issuance:

    A notice is published for public and stakeholder objections (if any). 

    3. Strike Off Approval:

    If no objections arise, the ROC approves the strike-off application.

    4. Official Gazette Notification:

    The LLP’s name is removed from the register, and it is officially dissolved. 

    What Happens After Filing the Application?

    Once the ROC receives the application, the following steps take place: 

    Verification of Documents:

    The ROC reviews the submitted documents to ensure compliance. 

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    Public Notice Issuance:

    A notice is published for public and stakeholder objections (if any). 

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    Strike Off Approval:

    If no objections arise, the ROC approves the strike-off application. 

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    Documents Required for DIN Application

    If the director has already completed DIR-3 KYC, they can simply complete WEB-Based Director’s KYC by: 

    Address Proof (Driving License, Voter ID, Utility Bills, Passport, Tax Receipts, Bank Statement)

    Identity Proof (PAN Card for Indian nationals, Passport for foreign nationals)

    Timely filing of DPT-3 ensures compliance, prevents legal risks, and maintains your company’s credibility with financial institutions and stakeholders. 

    FAQs on LLP Strike Off

    1. Can an LLP be restored after strike off?

    Yes, an LLP can apply for restoration within 5 years through the National Company Law Tribunal (NCLT). 

    2. What happens if an LLP has pending liabilities?

    The LLP cannot be struck off until all liabilities are cleared. If liabilities exist, partners may be held responsible. 

    3. Can creditors object to an LLP’s strike off?

    Yes, creditors can file an objection if the LLP has outstanding dues. 

    4. How long does the LLP strike-off process take?

    It usually takes 3 to 6 months, depending on approvals and objections. 

    5. Is it mandatory to file financial statements before strike off?

    Yes, the LLP must submit a Statement of Accounts before applying for strike off.