LLP strike off - Rule 37(1)(b) - E-Form 24

[Vishwanath Pai]

Respected members,

As per Rule 37(1)(b) of LLP Rules, 2009, where a LLP is not carrying on any business or operation for a period of 1 year or more, it can apply in Form 24 to Registrar, with the consent of all partners for striking off its name from Register. 

I seek clarification / views from members as on the term 'not carrying on any business or operation' . Would it mean

(1) No sales or Income from operations for last 1 year, OR

(2) No expenses of any sort for last 1 year.

We have the case of a LLP, which has no sales / other income in FY 2017-18 as per its Form 8 filed for 31-Mar-18, but has incurred administrative expenses like conveyance expense, restaurant bills and professional fees (for account writing, MCA and Income tax filings) aggregating Rs 12k in FY 2017-18. As of date, there are no creditors. In Assets, there is only cash balance and bank account, which can be closed and amount expensed out.  

So in this case after expensing out the cash / bank balance , would the LLP be eligible under Rule 37(1)(b) to apply in Form 24 now or would it have to keep a cooling off period for 1 year, wherein no expenses are incurred and then apply for strike off, say in September / October 2019.

Regards

Vishwanath

[CS V Kartik]

According to me, if all the pending filings are done, then it can apply for strike off. But kindly ensure a Nil Balance Sheet from an auditor & the same should not be older than 2 months from the date of filing

[CS SANDIP LATHIYA]

Dear Vishwanath,

Approval of Form 24 takes more than 6 Months.

And, iF That time Roc raised Query regarding Complete pending filling then you must complete Filling with panelty of Rs. 100/Day

So its advisable that wait upto 1 year of  completion.

Then File Form 11 and Form 8 for the year and then after File  Form 24.

 

--  “IF YOU THINK COMPLIANCE IS EXPENSIVE, TRY NON-COMPLIANCE” Best Regards.....!!! Cs Sandip Lathiya Practising Company Secretary Contact:- Email Id:- pcssa...@gmail.com Whatsapp Contact No:- +91 96246 40038 Hike Contact No:- +91 96246 40038

On Wednesday, 1 August 2018 8:41 PM, CS V Kartik <karv...@gmail.com> wrote:

According to me, if all the pending filings are done, then it can apply for strike off. But kindly ensure a Nil Balance Sheet from an auditor & the same should not be older than 2 months from the date of filing

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[Vishwanath Pai]

Dear Mr Kartik and Mr Lathiya

Thank you for your advice. 

In the LLP seeking strike-off, Form 11 and Form 8 till March 31, 2018 have been filed. So it is compliant on this part. I visited the ROC office, Mumbai and met a person who looks into the LLP strike-off requests, who said that this particular LLP may apply for strike off. He said there should be no assets / liabilities other than contribution and P&L debit balance.

I happened to meet a professional who had submitted Form 24 in last week of November 2017, but it is still not approved. So the strike-off process does take a long time. I assume the LLP would have to comply with Form 11 & Form 8 filings, and income tax return, till the Form 28 request is approved and LLP name is stuck off the Register.

Regards

Vishwanath

[Tanvi Aggarwal]

In the rule 37 (1) (b) itself they have explained the meaning of commercial transaction. Kindly have a look at them.

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Regards

Tanvi- Aggarwal
9999629990

[Vaishali Patrikar]

In my case, the LLP form 24 was approved in 45 days. ROC scrutinizes the form and changes the eform status to "initiated for strike off" and then keeps on mca portal for 30 days for any public querry. If no querries, then it strikes it off. If all the docs are clear, ROC takes only 45 days. 

If the form 8 and 11 are not filed, eform 24 pre-scrutiny gives error that these forms are to be filed first.

Regards,

Vaishali 

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[Tanvi Aggarwal]

how is it possible, there is no need of filing of forms.

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Regards

Tanvi- Aggarwal
9999629990

[Tanvi Aggarwal]

so in the dorm it says the date from which llp ceases to carry on its business. it depends what date you enter here.

[Vaishali Patrikar]

Yes that is true.

Regards,

Vaishali 

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Regards

Tanvi- Aggarwal
9999629990

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Regards

Tanvi- Aggarwal
9999629990

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