LLP Strike Off refers to the process of legally dissolving a Limited Liability Partnership (LLP) by removing its name from the register of LLPs maintained by the Registrar of Companies (ROC). This process is initiated when the LLP is no longer carrying on business or is inactive. Upon strike-off, the LLP ceases to exist as a legal entity and is not required to meet statutory compliance obligations.
1. Overview:
2. Types of Strike Off:
1. Identification:
2. Notice:
3. Response:
4. Strike Off Decision:
If the ROC does not receive a satisfactory response or if the LLP fails to comply with regulations, the ROC will proceed with the strike-off and publish the decision.
Cost Savings: Eliminates ongoing compliance costs and administrative expenses.
Legal Closure: Provides formal legal closure of the LLP’s existence.
Avoid Penalties: Prevents further penalties for non-compliance with statutory requirements.
Clean Slate: Allows partners to focus on new ventures without the burden of an inactive LLP.
Liability Risks: Directors may be liable for any claims or liabilities arising after the strike-off.
Limited Recovery: Once struck off, the company cannot be easily revived, and assets may be lost.
Legal Consequences: The company’s name cannot be used for a new company for a specified period.
Potential Disputes: There may be disputes with creditors or stakeholders if the company has unresolved issues.