Notification for Striking off of Name of LLP- Why & what to do?

ROC, Delhi & Haryana in its drive to clean the registry has issued the notice of striking off to 1171 LLP’s under Section 75 of LLP Act, 2008 read with Rule 37 of LLP Rules, 2009 by notification dated 30/05/2018.

This comes after the regular pressure from the Govt to streamline the entities and force them mentally to think that compliances are not optional in nature and thin line to observe here is: you cannot be allowed to run businesses if you are taking annual compliances for granted.

Here are the Highlights of the Notice issued by MCA regarding Striking off of Name of 1171 LLPs.

1. 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) 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 of Registrar of Companies, NCT of Delhi & Haryana within one month of the date of publication of this notice

Cause of the Notice for Striking off of Name of LLP?

LLP’s who were not carrying on any business or operation for a period of two immediately preceding financial years and also had failed to file their Financial Statements (Form 8) and Annual Return (Form 11) for the Financial Year 2015-16 and 2016-17.

Why did this happen?

Many Businessmen considered LLP at par with normal Partnership Firms and they wondered as if they have to file Income Tax Return only.

There have been instances where even Form 3 has not been filed which consist of the LLP Agreement. As the filings of Form 3 are mandatory in nature and it can not be left out.

Why did ROC issue notice for Striking off of Name of LLP?

Govt. is now taking ROC matters seriously unlike before and thus Registrar had the reasonable cause to believe that non-compliances will no do and for the purpose of taking suo-moto action for striking off the name of these LLPs. This is why MCA has come up with the Notice.

What to do after notice for Striking off of Name of LLP?

If there is no reply to the notice, ROC shall 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.

How to raise an objection against notice for Striking off of Name of LLP?

Well; if there is any person objecting to the proposed removal/striking off of the name of the LLPs from the register of LLPs, they may send his/her objection to the office of Registrar of Companies, NCT of Delhi & Haryana within one month of the date of publication of this notice.

If ROC finds the objections valid, they will ask the LLPs to make good of non-filings case-to-case basis.

You can view the Notice Original Copy here or download it too for your reference

https://taxguru.in/corporate-law/mca-proposes-strike-1171-llps-read-list.html