{"id":47364,"date":"2022-08-25T12:32:38","date_gmt":"2022-08-25T07:02:38","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=47364"},"modified":"2024-12-26T18:25:59","modified_gmt":"2024-12-26T12:55:59","slug":"what-is-the-procedure-of-llp-strike-off","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/what-is-the-procedure-of-llp-strike-off\/","title":{"rendered":"What is the Procedure of LLP Strike Off?"},"content":{"rendered":"\n<p>LLP &#8211; <strong>Limited Liability Partnership<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Limited_liability_partnership\"><strong>[1]<\/strong><\/a><\/sup> is a partnership where all or some of the partners have limited liability; it is an alternative form that gives benefits of Limited liability of the company and flexibility of a partnership. Its existence can continue irrespective of changes in partners. It can enter into contracts and can hold property in its name. <a href=\"https:\/\/corpbiz.io\/llp-registration\"><\/a><strong><a href=\"https:\/\/corpbiz.io\/llp-registration\" title=\"Limited Liability Partnership Registration\">LLP<\/a><\/strong> is a separate legal entity, and the liability of the partners is limited to their agreed contribution to the LLP. Further, no partner is held liable for the actions of other partners. Thus partners are shielded from joint liability. Further in this writing, we will discuss the LLP Strike Off procedure.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/what-is-the-procedure-of-llp-strike-off\/#Meaning_of_LLP_Strike_Off\" >Meaning\nof LLP Strike Off<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/what-is-the-procedure-of-llp-strike-off\/#Methods_for_LLP_Strike_Off\" >Methods\nfor LLP Strike Off<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/what-is-the-procedure-of-llp-strike-off\/#Conditions_for_LLP_Strike_off\" >Conditions\nfor LLP Strike off<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/what-is-the-procedure-of-llp-strike-off\/#Reasons_for_LLP_Strike_Off\" >Reasons\nfor LLP Strike Off<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/what-is-the-procedure-of-llp-strike-off\/#Process_of_LLP_Strike_Off\" >Process\nof LLP Strike Off<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/what-is-the-procedure-of-llp-strike-off\/#Conclusion\" >Conclusion:<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Meaning_of_LLP_Strike_Off\"><\/span>Meaning\nof LLP Strike Off<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If an LLP wants to close down its\nbusiness or the LLP is not carrying on any business operation or activity for\nmore than one year, the LLP can make an application to the Registrar for\nstrucking down the name of the LLP from the register of LLP.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Methods_for_LLP_Strike_Off\"><\/span>Methods\nfor LLP Strike Off<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The provision for Strike Off is\ngoverned by the rules of Limited Liability Partnership Rules, 2017. However,\nLLP Strike off in the following two ways, they are<\/p>\n\n\n\n<ul>\n<li><strong><em>Mandatory\nStriking of the LLP:<\/em><\/strong>&nbsp; The Registrar has the power to send the\nnotice to the LLP to strike off the name from the register and request them to\nsend their representation with-in one month from the date of the notice or if\nthe ROC has a reasonto believe that the LLP is not doing any business for one\nor more preceding years and not filing its annual returns. The ROC may strike\noff the name from the register. This type of method is said as Mandatory\nStriking of the LLP.&nbsp; <\/li>\n<\/ul>\n\n\n\n<ul>\n<li><strong><em>Voluntary Striking off the LLP: <\/em><\/strong>Voluntary Striking off the LLP can be done by making an application in e-Form 24 to the Registrar with the consent of all the partners of the LLP. Following are the attachment that needs to submit along with e-Form 24.<\/li>\n<\/ul>\n\n\n\n<ol>\n<li>An\nAffidavit duly-signed by the Designated Partners as per the prescribed format.<\/li>\n\n\n\n<li>An\nauthority copy to make the application duly signed by all the partners.<\/li>\n\n\n\n<li>An\nacknowledgement copy of the latest ITR in case the ITR is filed.<\/li>\n\n\n\n<li>All the\npartner&#8217;s consent for Strike Off.<\/li>\n\n\n\n<li>Statement\nof Account disclosing all the details related to nil assets and liability.<\/li>\n\n\n\n<li>Detailed\nreasons for Strike Off and the operative status of the LLP.<\/li>\n\n\n\n<li>The LLP has\nnot started business, or where it has commenced business, it ceased to do such\nbusiness from ____________ (DD\/MM\/YYYY).<\/li>\n\n\n\n<li>LLP has no\nliabilities &amp; indemnifies any liability that may arise even after striking\noff its name from the register.<\/li>\n\n\n\n<li>That the\nLimited Liability Partnership (LLP) has not opened any bank account &amp; where\nit had opened, the said bank account has since been closed together with certificate(s)\/statement\nfrom the respective bank demonstrating closure of bank account;<\/li>\n\n\n\n<li>The LLP has not filed its <strong><a href=\"https:\/\/corpbiz.io\/income-tax-return-filing\" title=\"Income Tax Return Filing\">Income-Tax Return<\/a><\/strong> where it has not carried on any business since its incorporation, if applicable.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conditions_for_LLP_Strike_off\"><\/span>Conditions\nfor LLP Strike off<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following conditions for the LLP to\ngo strike off are mentioned below:<\/p>\n\n\n\n<ul>\n<li>LLP must\nnot have any unpaid debt.<\/li>\n\n\n\n<li>LLP shall\ncomplete all the ROC filing till the date of making an application for Strike\nOff.<\/li>\n\n\n\n<li>LLP must be\ninoperative or inactive at least for one entire financial year.&nbsp;&nbsp;&nbsp; <\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reasons_for_LLP_Strike_Off\"><\/span>Reasons\nfor LLP Strike Off<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The listed are the reasons for the LLP Strike off they are as\nfollow:<\/p>\n\n\n\n<ol>\n<li><strong>No compliance burden: <\/strong>Once the name has been removed from the register of LLP, the Director and Promoter get free from the compliance responsibility.<\/li>\n\n\n\n<li><strong>Speedy Route of Closure:<\/strong> Inactive or non &#8211; functioning LLP can be closed by submitting FORM \u2013 24 to the Registrar of LLP.<\/li>\n\n\n\n<li><strong>Avoid Fines: <\/strong>If the inactive LLP is not following legal compliances, it may incur hefty penalties and fines, punishments for the officers of the LLP in some instances, including debarment of the Directors from starting another LLP. Hence, it is better to officially wind- Up an LLP that is inactive and avoid potential fines or liabilities in the future.&nbsp; <\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Process_of_LLP_Strike_Off\"><\/span>Process\nof LLP Strike Off<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li><strong><em>STEP 1<\/em><\/strong>. LLP shall hold meetings of partners for approval of LLP Strike Off.<\/li>\n\n\n\n<li><strong><em>STEP 2.<\/em><\/strong> Consent for all the partners is required for LLP Strike Off.<\/li>\n\n\n\n<li><strong><em>STEP 3.<\/em><\/strong> If any other authority governs LLP, then approval shall be taken from that authority<\/li>\n\n\n\n<li><strong><em>STEP 4.<\/em><\/strong> Once the approval is granted, the LLP has to file Form \u2013 24 to the Registrar of companies.<\/li>\n\n\n\n<li><strong><em>STEP 5.<\/em><\/strong> After an application is received, the Registrar of companies will publish a public notice. Any objection to the proposed strike-off shall be sent within 30 Days.<\/li>\n\n\n\n<li><strong><em>STEP 6.<\/em><\/strong> After the said period expires, the ROC will strike off the name, and the LLP will be dissolved. <\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>After reading this writing , it can be concluded that the LLP Strike Off can be of two types, mandatory striking of the LLP and voluntary striking off the LLP. For a voluntary strike, the consent of all partners is needed, and in case of mandatory, if the ROC thinks that the LLP should be strike off, he will send a notice to LLP with the reason to strike off.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/difference-between-winding-up-and-striking-off-a-company-in-india\/\">Difference between Winding up &amp; Striking off a Company in India<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>LLP &#8211; Limited Liability Partnership[1] is a partnership where all or some of the partners have limited liability; it is an alternative form that gives benefits of Limited liability of the company and flexibility of a partnership. Its existence can continue irrespective of changes in partners. It can enter into contracts and can hold property [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":47367,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[120],"tags":[2635],"acf":{"service_id":"625"},"authorName":"Saiyam Shah","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/07\/MicrosoftTeams-image-76.jpg","authorDescription":"Saiyam Shah has done his LL.M in Business Law from Amity Institute of Advanced Legal Studies \u2013 Amity University. His area of interest is legal research related to Indirect \u2013 Tax and Company law. He has prior experience in Tax litigation, dealing with various Income \u2013 Tax Assessments and has good drafting skills in filing arguments and replying to Income \u2013 Tax Notices.","postViews":8421,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/47364"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=47364"}],"version-history":[{"count":13,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/47364\/revisions"}],"predecessor-version":[{"id":68069,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/47364\/revisions\/68069"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/47367"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=47364"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=47364"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=47364"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}