What is LLP?

LLP stands for Limited Liability Partnership. It is a type of business entity or company registration type where partners have Limited Liability for the corporation. So, LLP is a separate legal entity like a private limited company or corporation. It can also enter into contracts, buy and build assets. LLP Registration is famous for its flexibility of partnership and benefits of a Company.

What is the Strike off of LLP?

Strike Off of LLP is an online and mandatory process to do if you are shutting down your business after having LLP Registration for the duration of one year or more.

It is also mandatory to do Strike Off of LLP through an application procedure if you are not carrying any business activities after incorporating your startup or company as LLP.

Eligibility for applying for Strike Off of LLP Company

#1. LLP Company is Inoperative from the Date of Incorporation.

#2. LLP Company is Inactive for the duration of one year or more.

#3. Current Account of LLP is closed

#4. LLP Company has consent or NOC from different parties such as govt agencies, Creditors, other Partners in the Company

What are the consequences if Strike off of LLP not applied even after business shutdown?

If you don't apply for Strike Off of LLP even after business is inoperative or closed, you will be liable for doing LLP Compliances LLP Compliances are mandatory even if the company is having zero transactions. Missing LLP Compliances imposes hefty penalties and therefore it is important to apply for strike off of LLP.

The cost of statutory and annual compliances of LLP are also more as compared to the strike off of LLP procedure. Thus, it's beneficial and the best decision to apply for Strike Off of LLP.

Ways to apply for Strike Off of LLP

Declaring LLP as Defunct or Non-Functioning
If your LLP Company has not carried on any business operation from one year onwards, or if you want to close its business, you need to declare the LLP as defunct or non-functioning to apply for Strike Off of LLP. Declaring a LLP as defunct through an application form will indicate to the registrar to remove the name of LLP from RoC.

Wind up LLP
When an LLP is wound up, its assets are sold to pay off debts, and any remaining funds are split to the owners if there is any. There are two methods for winding up an LLP: voluntary winding up and mandatory winding up.

What are the formalities to be done before applying Strike off of LLP?

#1. Stop the Commercial Activity.

#2. Close down the Current Bank Accounts.

#3. Create Affidavits & Declaration.

#4. Prepare Documents and Submit Documents in the required format.

#5. Obtain a Certificate from Chartered Accountant (CA) notifying no assets and no liabilities are outstanding.

#6. Submit LLP Form 24

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Why choose E-StartupIndia as Service Provider for Striking off your LLP?

E-StartupIndia staff is composed of highly skilled professionals including CA, CS, Lawyers, and business administrators. E-StartupIndia is a one-stop solution for LLP Strike Off Procedures. Along with these services, we also offer startup consulting, secretarial compliance services, PAN and TAN registrations, DIN registrations, GST registration, Trademark registration, Income Tax return filing, among many more. Our process is simple and transparent and you are assured of quality service while working with E-Startup India.