How is an LLP struck off?
An LLP is struck off, on its own application, by filing Form 24 with the Registrar. Rule 37 allows that application where the LLP has not carried on business or has ceased to carry it on for at least one year. The partners decide. The LLP does not hold a board meeting, and the form is not STK-2.
When can the name be removed?
The partners resolve to apply, and they authorise a designated partner to sign. Liabilities are paid, the bank account is closed, and the statement of account that goes with the form shows no assets and no liabilities. How an LLP is formed, and what a designated partner is, is on the LLP page.
Form 11 and Form 8 for a year that has already fallen due are still filed. The yearly set is on the LLP compliance page. The application does not wipe those forms.
What does Form 24 carry?
The form asks for the partners’ resolution, a statement of account that gives a true and fair view and is certified by a chartered accountant, an affidavit that there are no creditors, the acknowledgement of the latest income-tax return, a certificate that the bank account is closed, and the LLP agreement where it was not already on the register. The statement is prepared close to the filing. This page does not quote a fee.
What is a different closing?
A company’s name is removed under the Companies Act, in the company’s forms. That route is on the company strike-off page. Winding up by the Tribunal is also different: it is an order, not Form 24. Form 24 is the LLP’s application to be declared defunct and removed from the register.
Frequently asked questions
Four questions cover STK-2, a board, assets, and the annual forms.
Is the form STK-2?
No. STK-2 is a company form. An LLP applies in Form 24 under rule 37 of the LLP Rules.
Does the LLP hold a board meeting?
No. An LLP does not have a board of directors. The partners, including the designated partners, decide and authorise one designated partner to file.
Can the form be filed with assets still on the books?
No. The statement filed with Form 24 is expected to show no assets and no liabilities. Debts are settled before the application.
Do the annual forms stop on the day the partners decide?
No. Form 11 and Form 8 that are already due are still filed. The strike-off application does not erase a year that has already ended.
Sources
Removal of an LLP’s name on its own application is rule 37 of the Limited Liability Partnership Rules, 2009. A company’s strike-off is a different form.