Quick Answer
The Registrar of Companies (RoC) issues a Notice of Strike Off to LLPs for non-compliance with the LLP Act 2008, specifically failing to file Form 8 and Form 11, or failing to conduct business for two years. Over 3,000 LLPs received such notices, including 1,171 from RoC Delhi and Haryana dated May 30, 2018.
You have started your LLP and have started running it, without fully understanding the compliance requirements and one fine day you receive a NOTICE OF STRIKE OFF(LLP) for your LLP
Do you know how many LLP’s have received notice of NOTICE OF STRIKE OFF(LLP)?
Well, more than 3000 LLP’s have received NOTICE OF STRIKE OFF(LLP) form RoC, of which RoC Delhi and Haryana alone has issued notice for about 1171 LLP’s vide notice dated notice dated 30th May 2018
After steps of disqualification of directors of defaulting companies, the Registrar has now taken the actions for defaulting LLPs. A list of total 1171 LLPs are proposed to strike off by RoC Delhi and Haryana vide notice dated 30th May 2018.
Well, if you do not comply with Rules laid under LLP Act 2008 RoC is empowered to strike off your LLP, here are the main reasons for strike off
Full Extract of RoC notice to LLP’s
Notice is hereby given that the Registrar has a reasonable cause to believe that “The following LLPs mentioned in the Annexure ‘A’ (List of 1171 Nos. of LLP)
LLP’s have not been carrying on any business or operation for a period of two immediately preceding financial years.” And these LLPs have to file their Financial Statements (Form — 8) and Annual Return (Form — 11) for the Financial Year 2015-16 and 2016-17 but they have failed to do so.
Therefore, the Registrar has reasonable cause to believe the same for the purpose of taking suo-moto action for striking off the name of these LLPs”
It is therefore, proposes to remove/Strike off the names of the said LLPs from the Register and dissolve them unless a cause is shown to the contrary, within one month from the date of this notice.
2. Any person objecting to the proposed removal/striking off of the name of the LLPs from the register of LLPs may send his/her objection to the office address mentioned hereinabove within one month of the date of publication of this notice.
RoC ( Registrar of Companies ) have power under Section 75 of LLP Act, 2008 read with Rule 37 of LLP Rules, 2009 to strike off the names of LLP
RoC, if it has reasons to believe that an LLP is not carrying on business in accordance with the provisions of the Act and LLP, has not complied with Annual Filings then it may send notices
Legal jurisprudence requires that the affected parties must be given an opportunity of being herd, in compliance with this legal principle The registrar has sent the notice section 75 of LLP Act 2008 to the LLP and its partners allowing any representation or objection to proposed strike-off within a period of one month from the notice.
LLP and Partners and other stakeholders fail to file any objection or initiate actions within 30 days of the notice, the RoC shall process the removal of name from the register and the LLP would be technically dissolved (Closed).
As explained above since RoC has given an opportunity to file an objection you need to do it
The Strike off notice can be objected to any stakeholder, the primary list is mentioned below
If the LLP fails to reply to the LLP Strike off notice, the following would happen
Gone are the days we can be non-compliant and get off without any strict penalty, in the process of eliminating the shell LLP and make all LLP be complaint these steps are taken
If you want to run your business and protect your brand be compliant and follow the rules stipulated
One last change is given for revival of your LLP use this change reply to notice and save your LLP
For any assistance of Reply to Strike off Notice(LLP) or any clarification our subject experts at + 91 99622 60333 or E-Mail: support@virtualauditor.in
The RoC issues a strike off notice when an LLP fails to comply with the LLP Act 2008. Specific reasons include failure to file annual financial statements in Form 8, failure to file annual returns in Form 11, or not conducting business operations for two preceding financial years.
You should check if your LLP is marked as Under Process of Strike Off in the LLP master data. You must reply to the RoC notice within one month, providing reasons for non-compliance and attaching relevant documents proving business existence or explaining the non-commencement of business activities.
Yes, any stakeholder can object to the proposed removal of the LLP from the register. This includes the LLP itself, its partners, creditors, the Income Tax Department, or GST and VAT departments if tax is due, and any other affected stakeholder representing their interest.
If an LLP fails to reply within the stipulated time, the RoC will publish the strike off notice in the Official Gazette. Upon publication, the LLP is officially dissolved and its name is removed from the register maintained by the RoC.
No, the liability of the LLP and its partners continues even after the strike off under Rule 37(5). Additionally, under Rule 37(4), the LLP's assets remain available for the payment and discharge of any existing liabilities and obligations, even after the strike-off order is issued.