Strike off LLP – H & G eBiz Pvt. Ltd.

Strike off LLP

Wind up your LLP and stop complying with routine compliances. LLP Strike off Prices start at INR 8,999/-* only.

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Strike off LLP

Overview

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.

Benefit of Strike off LLP:

Free from debts after liquidation:
Once the liquidation process is over, the directors and all company officials are free from all creditor liabilities and pressure.

Avoiding legal action against the company:
If the resolution is passed voluntarily by directors, they will neglect legal action taken by the court or the tribunal, and provide a platform to company directors to concentrate on other business opportunities.

Low cost Compare to Sell the Assets:
The cost or expenses involved in the liquidation process is relatively low, as charges will be applicable on the sale of assets.

All lease agreements will be cancelled:
If any company or entity has entered into a lease for a prescribed time, during the liquidation process, it will terminate all the terms and conditions of the lease. If any penalty has to be paid, it will be deducted from the sale of assets.

Advantages for creditors: After a prolonged struggle, creditors will benefit from the liquidation process as they will be eligible for a default payment, with respect to the proposition of credits given by all creditors.

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.

The winding-up of the LLP can be executed in two different ways

Compulsory winding up: The Winding-up of the LLP is initiated by a tribunal for the following reasons:

The LLP wants to wind up.

There are less than two partners in the LLP for more than 6 months

The LLP is not in a position to pay debts

The LLP has acted against the interest of the sovereignty and the integrity of India, the specified security of the state or public order.

The LLP has not filed with the statement of accounts and solvency or the LLP annual returns for any five consecutive financial years with the Registrar.

The Tribunal thinks that is just and equitable that the LLP should windup.

Voluntarily winding up:

The LLP winding-up process can be easily initiated with the approval of 3/4th of the partners. To begin with the liquidation process for the LLP the designated partners need to make a declaration that the LLP does not have any debt or that the LLP will pay the debts totally within not more than 1 year from the process of winding up of an LLP.

The LLP partners need to declare that the LLP is not winding up because of any frauds. This statement of the declaration must be prepared along with the statement of the assets and the liabilities until the most recent practicable date right before making the declaration for winding up of the LLPs.

A valuation of the assets that are relevant to the LLP should be prepared and submitted, in case of any assets. Voluntary winding up the LLP will be effective from the start date of passing the resolution for the reason of voluntary winding up of the LLP.

Documents required for the closure of the LLP

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.

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:

Strike Off LLP Packages

Standard

8,999/-

Wind up an LLP with no transactions since incorporation

Buy

regular

10,199/-

Wind up an LLP with no transactions since incorporation

2 Directors' DIR 3 KYC

Buy

advance

18,299/-

Wind up a company with no transactions since incorporation

2 Directors' DIR 3 KYC

Form 8 and Form 11 Filing for 1 Financial year

Nil ITR filing

2 DSC Application Class III Individual 2 Year Validity

GST Cancellation

Buy

Process to Strike off LLP in India

With respect to the companies act, 1961, the resolution of the board meeting is essential to start the winding up process.

In a special resolution, a majority of 3/4th of the company shareholders should register their vote on the side of winding up the company.

Similarly, the company’s creditors should approve the resolution made for winding up, without complications.

The “Declaration of Solvency” should enclose outstanding debts along with the auditor report, regarding total assets of the company and it should be forwarded to the ROC (Registrar of Companies).

Now the official liquidator will be appointed to perform the winding up process from the date of passing the resolution.

After the resolution has been passed, the liquidator should open a bank account within a period of one month.

In any scheduled bank, the liquidator should open a bank account in the name with, the prefix “the name of the company” followed by “voluntary liquidation”.

After compiling all the necessary documents, the final report will be sent to the tribunal for reference.

After examining the credibility of the report, the tribunal will pass a decree for the dissolution of the company.

A copy of that decree will be forwarded to ROC by the liquidator within 30 days of the order dated.

Now the ROC will mandate the winding up of the company, and remove the name of that company from the registry.

Simultaneously, the ROC will publish this order in the official gazette of India.

Any company registered in India can be compulsorily winded up by the action of the tribunal or court, if the respective company has indulged in any fraudulent/ unlawful activities. The petition can be filed by

The company itself

The Registrar of companies (ROC)

The creditors of the company

The central/state governments

The contributors

If the ROC finds the draft satisfactory he then approves the winding up of the Company and the name of the Company is strike from the register of Companies.

ROC sends notice for Publication in the official gazette of India

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