Close Inactive or Defunct LLP
Pricing for Striking Off an Inactive LLP (Form 24)
- Eligibility Check for Closure?
- Due diligence of ROC filing?
- Finalization of Account?
- Statement of A/c Preparation?
- A/c Statement CA Certification?
- Affidavits & Indemnity Bond Drafting?
- Filing Form – 24 To ROC?
- Managing Winding up Process?
- Surrender of PAN ? W.
- Surrender of TAN ? W.
- GST Surrender ? A.
- GST Final Return(GSTR-10) ? G.
- Dedicated Relationship Manager?
- Newspaper Notice.?
- Notary Assistance at extra Cost?
- Priority Processing?
- More than Two Director ? The ready-made packs are suitable in case the number of the promoter is two only. However, if the number of promoters is more than two, use the calculator to calculate customed quotations.
- Foreign/NRI Investment ? The instant packages are for Indian Promoters Only. In the case of Foreign Investor or NRI, we have a different quotation, and the packages do not apply. Advise you to contact our Sales Team on this.
- Capital More Than One Lakh ? All our packages are for a capital level of upto Rs. 1,00,000/- in case of change in capital, please use the Company Registration Fee Calculator.
- Difficulty in Registered Address ? A company needs to have a registered address where the company shall maintain the statutory registers and books of account. However, if there is difficulty in arranging the registered address, the company may be incorporated on a communication address. Please, reach to us for help.
Note: None of our packs includes Notary Service or the Cost of Stamp Paper.
(We will draft the documents, and you have to buy stamp paper from a local stamp vendor and get the affidavits and indemnity bond notarised)
Table Of Content
Various Methods to Close an LLP
Difference between Winding UP and Striking Off
Striking off Defunct or Inactive LLP Under The Rule 37 of the LLP Rules 2019
The LLP must be defunct or inactive for at least one year before the date of filing form 24 for striking off the name of LLP. Inactivity means that the LLP has not carried any commercial transaction in the past year; mere payment of dues or receipt of money does not amount to commercial activity.
Assets or Liability
The LLP does not own any asset, and there must not be any liability. The financial statement must show Nil Assets and NIL Liabilities.
All partners of the LLP must consent to strike off the LLP; in case of dispute between partners, Form 24 is not applicable.
A Chartered Accountant must attest to the Statement of Accounts showing NIL assets and liabilities in practice. The date of the statement should be within 30 days on which Form 24 is being filed.
The LLP must have filed its annual return in Form 11 and Form 8 for its active period. Refer to sub-rule 1A of Rule 37 of the LLP Rules
Check DIN Status
Every year DIR-3(KYC) must be filed to keep the DIN active for the LLP partners; check the DIN status; if the KYC has not been filed, Please do file the DIN KYC.
Check DSC Validity
As the application for striking off the LLP is filed with the use of Digital Signature, check if the DSC is valid for the partners; if not, Go for DSC Renewal.
Stepwise Process of Making an application to Strike Off the LLP
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Email us: firstname.lastname@example.org
List of Documents for Filing Application to Strike Off the LLP
Consent of all the partners
Bank Closure Statement
CA Certified Statement of Accounts
Copy of ITR Acknowledgement of LLP
Affidavits of all partners
Indemnity Bond of all partners
Identity and Current Address Proof of partners
Stamp Duty & Notary
Benefits of Closing Inactive or Dormant LLP
Free From Compliance Burden
Certain legal compliance needs to be done even if the LLP does not do any business or is inactive. There is no relaxation from filing TDS or GST returns even if there is no transaction; similarly, annual compliance like filing of ITR, Form 11 and Form 8 with the ROC is a must. Any failure on these aspects results in a heavy penalty. By closing an LLP that does not intend to do business, it is relieved of compliance burden.
Save Money on Compliance
As already discussed, even if the LLP does not do any business, it must file various returns under the law. There is a substantial cost regarding the professional fee for doing several compliances. If a due date for the compliance is missed, then it leads to an additional fee payable at Rs. 100 for each day of delay. Therefore, In these circumstances closing an inactive LLP is always a wise decision that will ultimately result in saving money in the long term.
Move on in Life
The decision to make an LLP always starts with the hope of making it big, but everything planned may not meet the same fate. Business decisions can go wrong. Hence, if the plans are not going well or the team that started the journey together does not seem in sync, it is always better to conclude the LLP & move on in life.