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The strike-off process is a simpler and quicker method of closing an LLP that is not active or operational. When an LLP is struck off, it is removed from the Register of Companies maintained by the Registrar of Companies (ROC), making it legally dissolved.
Here’s a step-by-step guide to the strike-off process for LLPs:
An LLP can apply for strike-off if:
• It has not commenced business since its incorporation.
• It has not been in business or operational for at least one year.
• It has no outstanding liabilities.
Before applying for the strike-off, the LLP must meet the following conditions:
• All partners must consent to the closure of the LLP.
• The LLP must have settled all outstanding debts, liabilities, and statutory obligations.
• The LLP must not have any ongoing business operations or activity.
Consent of Partners – All partners must agree.
Resolution – Pass strike-off resolution → File in Form 1.
Application – File Form 24 with ROC.
Documents – Affidavit + Indemnity bond + Last year’s accounts.
ROC Approval – ROC verifies → Issues public notice → LLP struck off.
Resolution – Pass strike-off resolution → File in Form 1.
Application – File Form 24 with ROC.
Documents – Affidavit + Indemnity bond + Last year’s accounts.
ROC Approval – ROC verifies → Issues public notice → LLP struck off.
The following documents are required for the strike-off of an LLP:
1. Resolution of Partners: A copy of the resolution passed by the partners for closure.
2. Consent of Partners: Written consent from all partners agreeing to strike off the LLP.
3. Affidavit: A statement declaring that the LLP has no liabilities.
4. Indemnity Bond: An indemnity bond signed by all partners, ensuring no future liabilities.
5. Statement of Accounts A statement showing no transactions or liabilities in the last year.
2. Consent of Partners: Written consent from all partners agreeing to strike off the LLP.
3. Affidavit: A statement declaring that the LLP has no liabilities.
4. Indemnity Bond: An indemnity bond signed by all partners, ensuring no future liabilities.
5. Statement of Accounts A statement showing no transactions or liabilities in the last year.
The process typically takes 3 to 6 months, depending on the completeness of documentation and the ROC's verification process.
• Once the LLP is struck off, it is legally dissolved and ceases to exist.
• The LLP cannot be revived unless by a court order.
• Outstanding liabilities must be cleared before applying for a strike-off, as the partners are personally liable for any pending debts.
• The LLP cannot be revived unless by a court order.
• Outstanding liabilities must be cleared before applying for a strike-off, as the partners are personally liable for any pending debts.
The strike-off process is a simplified method for closing an LLP that is no longer operational or never commenced business. It ensures that the LLP is legally dissolved and removed from the ROC’s register. Proper documentation and following the prescribed procedures are essential to completing the process smoothly.
For assistance with the strike-off process of your LLP, contact Prahar Filing & Advisory for expert guidance.
For assistance with the strike-off process of your LLP, contact Prahar Filing & Advisory for expert guidance.
