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Till very recently, the answer anyone could have given is that you need to do annual returns of the LLP, IT returns of the LLP or sell the LLP to any other partner who might be interested in running this. However, we did not know about any action that RoC may take in case you do not run your LLP.
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Wazzeer Professional Network
ProfessionalWhat happens if an LLP is registered and did not run successfully?
-
Wazzeer Professional Network
ProfessionalTill very recently, the answer anyone could have given is that you need to do annual returns of the LLP, IT returns of the LLP or sell the LLP to any other partner who might be interested in running this. However, we did not know about any action that RoC may take in case you do not run your LLP.
You might have thought that the LLP that you incorporated did not run successfully and now I will not do anything with it. But now, MCA has started taking strict action against the LLPs also who have not done their annual returns.
Any LLP should file Form-11 before 30th May of every year and Form-8 before October 30th. Failure to do so will attract a penalty of Rs.100 per day per form. However, there are many LLPs out there who got incorporated and have not filed these for years together.
Now RoC has taken note of this and has started sending notices to the defaulting LLPs. In case if you have not filed these forms or have not filed for closure through Form-24, then the RoC may strike off your LLP.
After this LLP has the right to suspend your DIN for 5 years (This means you cannot be a Director in any Private/Public company or you cannot be a designated partner in any LLP during the period of suspension) and may also levy a penalty of Rs.50,000 to Rs.5,00,000 per designated partner. Hence, if your LLP did not run successfully it is better to close it via the filing of Form-24 so that your future entrepreneurship journey is not interrupted.
over 4 years ago
View answer
What happens if an LLP is registered and did not run successfully?
-
Wazzeer Professional Network
ProfessionalTill very recently, the answer anyone could have given is that you need to do annual returns of the LLP, IT returns of the LLP or sell the LLP to any other partner who might be interested in running this. However, we did not know about any action that RoC may take in case you do not run your LLP.
You might have thought that the LLP that you incorporated did not run successfully and now I will not do anything with it. But now, MCA has started taking strict action against the LLPs also who have not done their annual returns.
Any LLP should file Form-11 before 30th May of every year and Form-8 before October 30th. Failure to do so will attract a penalty of Rs.100 per day per form. However, there are many LLPs out there who got incorporated and have not filed these for years together.
Now RoC has taken note of this and has started sending notices to the defaulting LLPs. In case if you have not filed these forms or have not filed for closure through Form-24, then the RoC may strike off your LLP.
After this LLP has the right to suspend your DIN for 5 years (This means you cannot be a Director in any Private/Public company or you cannot be a designated partner in any LLP during the period of suspension) and may also levy a penalty of Rs.50,000 to Rs.5,00,000 per designated partner. Hence, if your LLP did not run successfully it is better to close it via the filing of Form-24 so that your future entrepreneurship journey is not interrupted.
over 4 years ago
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