Fast Track Exit (FTE) Scheme for LLP

FAST TRACK EXIT (FTE) SCHEME FOR LLP

APPLICATION BY LLP FOR STRIKE OFF ITS NAME FROM THE REGISTER OF LLP

[Rule 37 of the Limited Liability Partnership Rules, 2009]

Where a limited liability partnership (LLP) is not carrying on any business or operation since incorporation or for a period of one year or more, shall make an application in Form 24 to the Registrar for striking off its name from the register.

But before filing Form 24, the LLP shall file overdue returns in Form 8 and Form 11 up to the end of the financial year in which the LLP ceased to carry on its business or commercial operations.

The Form 24 shall be filed with the following attachments:

1.      A Statement of Account disclosing nil assets and nil liabilities, certified by a Chartered Accountant in practice made up to a date not earlier than 30 days of the date of filing of Form 24;

2.      An affidavit individually by the designated partner.       

3.      A copy of the acknowledgement of the latest Income-tax return filed where the LLP has carried out any business and has filed such return.

4.      Copy of the initial LLP agreement, if entered into and not filed, along with changes thereof in cases where the LLP has not commenced business or commercial operations since its incorporation.

5.      Consent by each partner to make the application

6.      Indemnity Bond- jointly or severally by Designated Partners

7.      Authority Letter signed by each designated partner

8.      Address and ID proofs of the Designated Partners.

9.      Any other documents, if required.

NOTE:

1.      The date of cessation of commercial operation is the date from which the Limited Liability Partnership (LLP) ceased to carry on its revenue generating business and the transactions such as receipt of money from debtors or payment of money to creditors, subsequent to such cessation will not form part of revenue generating business.

2.      Where the limited liability partnership is regulated under a special law, the application for removal of its name shall be accompanied by approval of the regulatory body constituted or established under that law.          

After receiving the application in Form 24, the Contents of an application shall be placed on the website of the Ministry of Corporate Affairs for the information of the general public for a period of one month. 

At the expiry of one month the Registrar may, by an order, unless cause to the contrary is shown by the limited liability partnership, or the Registrar is satisfied that the name should not be struck off from the register, strike its name off the register, and shall publish notice thereof in the Official Gazette, and on the publication in the Official Gazette of this notice, the limited liability partnership shall stand dissolved. 

The Registrar, before passing an order, shall, where he has sufficient cause to believe that the LLP has any asset or liability, satisfy himself 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 and, if necessary, obtain necessary undertakings from the designated partner or partner or other persons in charge of the management of the limited liability partnership.

STRIKE OFF THE NAME OF LLP SUO MOTU BY ROC

[Section 75 of the LLP Act, 2008 read with Rule 37 of the LLP Rules, 2009]

Where a LLP is not carrying on any business or operation for a period of two years or more, the Registrar shall suo-motu strike off the name of the LLP from the register.

   

Before striking off the name of the LLP, the Registrar shall send a notice to the LLP and all its partners, of his intention to strike off 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.  

A notice issued shall be placed on the website of the Ministry of Corporate Affairs for the information of the general public for a period of one month.

At the expiry of the time mentioned in the notice, the Registrar may, by an order, unless cause to the contrary is shown by the limited liability partnership, or the Registrar is satisfied that the name should not be struck off from the register, strike its name off the register, and shall publish notice thereof in the Official Gazette, and on the publication in the Official Gazette of this notice, the limited liability partnership shall stand dissolved.

The Registrar, before passing an order, shall, where he has sufficient cause to believe that the limited liability partnership has any asset or liability, satisfy himself 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 and, if necessary, obtain necessary undertakings from the designated partner or partner or other persons in charge of the management of the limited liability partnership.

LIABILITY AFTER DISSOLUTION

The assets of the limited liability partnership shall be made available for the payment or discharge of all its liabilities and obligations even after the date of the order removing the name of the limited liability partnership from the register. 

The liability, if any, of every designated partner of the limited liability partnership dissolved shall continue and may be enforced as if the limited liability partnership had not been dissolved.  

Nothing in this rule shall affect the power of the Tribunal to wind up a limited liability partnership the name of which has been struck off the register.  

Contact Details:

VISHAL SHARMA

Company Secretary

Mob: 9716763754

Email: csvishalpbs@gmail.com

Please note that for any query and consultancy Rs. 500/- will be charged.

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