OVERVIEW
The process of striking off a Limited Liability Partnership (LLP) from the records of the Ministry of Corporate Affairs (MCA) in India is governed by Section 75 of the LLP Act, 2008 and Rule 37 of the LLP Rules, 2009. An LLP (Limited Liability Partnership) can be struck off (closed) voluntarily or by the Registrar of Companies (ROC) if it is inactive or not compliant with regulations.
ELIGIBILITY FOR LLP STRIKE-OFF
- LLP is not carrying on any business for at least one year or more.
- LLP has no pending liabilities, including government dues.
- All partners have given consent to the strike-off.
- No ongoing legal proceedings against the LLP.
- No active bank account in the name of the LLP.
STRIKE-OFF BY ROC (COMPULSORY STRIKE-OFF)
The ROC can Suo moto strike off an LLP if:
- It fails to file Annual Returns (Form 11) and Financial Statements (Form 8) for two consecutive years.
- It is not operational.
- It has not complied with LLP Act, 2008.
Before striking off, ROC sends a notice to the LLP. If no response is received, the LLP is struck off.
CONSEQUENCES OF LLP STRIKE-OFF
- The LLP ceases to exist legally.
- The name is removed from the ROC database.
- Partners remain liable for any pending dues or legal proceedings.
DOCUMENTS REQUIRED FOR LLP STRIKE-OFF
1. Form 24 (Application for Strike-Off)y
2. Indemnity Bond (Signed by all partners)
- States that all liabilities are cleared.
3. Affidavit from Partners
- Declares that the LLP has no assets, liabilities, or operations.
4. Statement of Assets & Liabilities
- Duly certified by a Chartered Accountant (CA).
5. Bank Closure Certificate
- Proof that the LLP's bank account is closed.
6. Consent Letter from Partners
- Signed by all designated partners.
7. NOC from Creditors (if any)
- If the LLP has taken loans, a No-Objection Certificate is required.
8. Latest Income Tax Return (if filed)
- If applicable, attach the last filed IT return.