Striking Off Defunct LLP
Striking Off Defunct LLP Name
A limited liability partnership (LLP) having no business operations for a period of one year or more can be closed down easily by striking off name of defunct LLP. To close a LLP, a voluntary winding or winding-up by tribunal methods are available. However, a defunct LLP, that has not carried on any business or operations for a period of one year or more can be removed from the LLP register by striking off name.
Striking Off Name of LLP
If a Limited Liability Partnership (LLP) has not carried on any business or operation for a period of one year or more, the Registrar or the LLP can initiate process for removal of the LLP name from the register. The process for striking off name of LLP can be initiated only on a LLP that has no activity or operation for a period of one year or more. In case of an active LLP, or an LLP having recent activity, winding up can be initiated voluntarily or by tribunal only.
Procedure for Striking Off Name
The procedure for striking off name of LLP can be initiated by the Registrar or by the LLP in e-Form 24 with the consent of ALL partners. On receiving the application, the Registrar would send a notice to the limited liability partnership and all its partners, of his intention to remove the name of the limited liability partnership from the register and requesting them to send their representations along with copies of the relevant documents, if any, within a period of one month from the date of the notice. The notice for striking off name of LLP is also placed on the MCA website for the information of the general public.
On completion of the time mentioned in the notice, if there are no adverse representations from the LLP partners or general public, the Registrar could (if satisfied), strike off the LLP name from the register and publish a notice in the Official Gazette. On publication of notice of striking off name of LLP in the Official Gazette, the limited liability partnership would stand dissolved.
Note: The Registrar can provide order for striking off name of LLP only if he/she is satisfied. The Registrar must also satisfy him or herself that sufficient provision has been made for the realization of all amount due to the limited liability partnership and for the payment or discharge of its liabilities and obligations by the limited liability partnership within a reasonable time.
Partners Liability After Striking Off
In case of striking off name of LLP, the liability of all designated partner of the limited liability partnership would continue and may be enforced as if the limited liability partnership had not been dissolved.
Also if any partner or creditor, feels aggrieved by the LLP having been struck off the register, an application can be made to the Tribunal for restoring the LLP before the expiry of five years from the publication in the Official Gazette. If satisfied with the application for restoration of LLP, a Tribunal can order the LLP be restored to the register and place all partners in the same position as nearly as if the name of the LLP had not been struck off.