Can a Salaried Person become a partner in an LLP?
September 10, 2021
Board Resolution Format to Close LLP
September 10, 2021
Can I close LLP without annual filing of LLP ?
No. You cannot close LLP without its mandatory LLP annual filing. LLP closing provision is given in in clause (b) of sub-rule 1 of Rule 37 of LLP Rules 2008. As per the legal provision before closing LLP its important then LLP annual compliance must be upto date. Some time LLP strike of is common when its have a limited transaction or business propose is not solved or LLP is in Losses. As per LLP Act 2008 LLP need to submit annual form No 11 and Form No 8 after the closure of the financial year.
LLP Annual filing before Closing LLP
Statement Of Account & Solvency Form 8 And Annual Return Form 11 Is Required to be upto date. Its precondition of clause (b) of sub rule 1 of Rule 37.
| S. No. | Agenda | Particulars | e-forms | Due Date Form Filling |
| 1 | Statement Of Account & Solvency | A “Statement Of Accounts And Solvency” In Prescribed Form Shall Be Filed By Every LLP With The Registrar Every Year. Sub-Section (3) Of Section 34 | LLP-8 | 30th October |
| 2 | Annual Return | Every LLP Would Be Required To File Annual Return In Form 11 With ROC Within 60 Days Of Closer Of Financial Year. | LLP-11 | 30 May |
Common reasons for LLP closing / Strike off
- Loss in Business
- Partners Decision
- Less transactions
- Court Order
- Death of partners
- Covid 19
Example close LLP without annual filing of LLP
Example 1 : ABC LLP Form in 2016 and its annual filing is upto date till the financial year 2020-21. Partners decided to close LLP. In such situation, partners can proceed to close LLP via filing Form No. 24.
Example 2 : XYZ LLP was formed in 2015 and its LLP annual filing is completed till FY 2019-20 and partners decided to close LLP. However partners firm need to complete the annual filing of FY 2020-21 and then can apply for LLP Closing / strike off.
Check Points to close LLP / LLP strike off
- Complete LLP annual Filing
- File Latest income tax return
- Close bank account
- Take NOC From creditors if any
- Partners declarations
- Covering letter with reason
Conclusion
closing LLP without annual filing of LLP is not possible where LLP has done business. Its important to make LLP annual compliance upto date. Then partners can apply in Form 24 for LLP closing. You can check LLP status of LLP annual compliance at MCA master data. https://www.mca.gov.in/mcafoportal/viewCompanyMasterData.do
