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.
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.
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.
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.
Companies that are not operating or not carrying on any business for the last two years from the date of application
Companies which are not operating or not carrying on any business within one year of incorporation and,
A company having Nil assets & liability.
As per the Companies Law, a company will not be eligible for strike off under the following circumstances:
The company is incorporated after 2nd November 2018, but it has not filed 20A.
One year is not completed since incorporation.
For ongoing company i.e having business transactions in last 1-2 years.
DIN is deactivated.
Any director is disqualified.
The company has already received notice from ROC of strike off.
Any ongoing litigation are pending.
The process of removing an incorporated or registered company from the list of companies maintained by the state registrar can be conducted smoothly with Ebizfiling team just by sharing your company name. Application for the strike-off can be made by the Company that is actively working and also by a dormant company.
Company Strike-off procedure is an online process. You can also check the Company strike-off list in India from MCA records. An application for removal of the name of the company / Strike Off Company shall be made in Form STK-2 along with the prescribed fees.
An eminent business platform and a progressive concept. It helps in end-to-end incorporation, compliance, advisory, and management consultancy services to clients in India and abroad. The process of Strike off a Private limited company is easy, cheap and quick at also provides strike off LLP, Strike of OPC, Company annual filing services and Secretarial Compliance Services. You may get in touch with Ebizfiling compliance manager on email gaurnnatitaxationandlegal@gmail.com for free consultation.
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