Strike Off LLP
Before we understand LLP Strike off, let us have a brief idea on LLP (Limited Liability Partnership :
LLP means an alternative corporate business form that it gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its name.
The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.
LLP Strike Off:
In case the LLP wants to close down its business or where it is not carrying on any business operations for the period of one year or more, it can make an application to the Registrar for declaring the LLP as defunct and removing the name of the LLP from its register of LLP’s.
An LLP need to be closed down / LLP Strike off can be done on the following conditions:
LLP is inoperative from the date of incorporation or inactive for a period of at least one year
LLP does not have any assets / liabilities as on the date of application.
Closure of current account of the LLP has been done
LLP Obtain the consent of the parties i.e any other authority, creditors and partners.
Reasons why an LLP may close its business / Reasons for LLP Strike off?
The statutory compliance of maintaining an LLP are higher than the cost of winding up. If the LLP is dormant it’s better to wind up than fulfill the compliance.
To avoid fines and penalty for late filing, it is better to officially Wind Up LLP’s which are inactive.
When the LLP has incorporated a Certificate of Incorporation is issued by the Registrar of Companies which acknowledges the existence of the LLP. Once the name of the LLP is entered into registrar it cannot be removed unless the LLP applies for strike off or it is processed by law. When the LLP fails to commence its business or fails to submit yearly returns, the registrar may suo motto strike off the LLP.
Why Chithragupta as Service Provider for Striking off your LLP?
Chithragupta is a group of intellectuals. The entire team of Chithragupta consists of Highly qualified CA, CS, Lawyers and business administrators. Chithragupta would be a one stop destination for your LLP Strike Off Procedures. We also provide services like Start up advisory, Secretarial compliance services, PAN / TAN application, DIN registration, GST registration, Trademark registration, GST / Income tax return filing and many more.
You may get in touch with our compliance manager on 8074555580 or email : email@example.com for free consultation and to know more about the services provided by us.
Documents Required for Private Limited Company registration
A statement of account disclosing nil assets and nil liabilities, certified by a Chartered Accountant in practice made up to a date not earlier than 30 days of the date of filing of Form 24.
Copy of acknowledgement of latest Income tax return- Self-Explanatory
A Copy of the initial limited liability partnership agreement, if entered into and not filed, along with changes thereof.
Copy of Detailed Application- Mention full details of LLP plus reasons for closure
A Copy of Authority to Make the Application- Duly signed by all the Partners.
An affidavit signed by the designated partners, either jointly or severally, to the effect:
1. That the LLP has not commenced business or where it commenced business, it ceased to carry on such business from ………….(dd/mm/yyyy);
2. That the LLP has no liabilities and indemnifying any liability that may arise even after striking off its name from the Register;
3. That the Limited Liability Partnership has not opened any Bank Account and where it had opened, the said bank account has since been closed together with certificate(s) or statement from the respective bank demonstrating the closure of Bank Account;
4. That the LLP has not filed any Income-tax return where it has not carried on any business since its incorporation, if applicable.