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The Ministry of Corporate Affairs has updated the Limited Liability Partnership (LLP) Rules with the introduction of the Limited Liability Partnership (Amendment) Rules, 2017, effective from May 20, 2017. One key change is the introduction of LLP Form 24, which simplifies the process of closing an LLP. This new form allows you to apply to the Registrar to have your LLP's name struck off the official records. In this article, we'll provide a detailed overview of LLP Form 24 and the step-by-step procedure for striking off the name of an LLP. ​

Managing a dormant Limited Liability Partnership (LLP) can be challenging, especially with the risk of incurring daily penalties for missing statutory filings. The penalty for failing to file required returns for an LLP is Rs.100 per day, with no upper limit. To avoid these penalties, it’s often wise to dissolve dormant LLPs to eliminate the need for ongoing compliance with LLP Form 11, LLP Form 8, and Income Tax Returns.

Thanks to the Limited Liability Partnership (Amendment) Rules, 2017, winding up an LLP has become much more straightforward. The introduction of LLP Form 24 has simplified the process significantly.

Step 1: Cease Business Activities

Before filing Form 24, ensure that your LLP has stopped all commercial activities. Form 24 can only be filed by LLPs that have either never conducted business or have completely ceased operations.

Step 2: Close Bank Accounts

Ensure all bank accounts associated with the LLP are closed. Obtain a closure confirmation letter from the bank, as Form 24 requires no open accounts or outstanding creditors.

Step 3: Prepare Affidavits and Declarations

All Designated Partners must provide an affidavit confirming that the LLP has ceased its commercial activities or has never commenced business. Partners must also declare that the LLP has no outstanding liabilities and agree to cover any potential liabilities even after the LLP is officially closed.

Step 4: Compile Required Documents

Submit Form 24 along with any relevant documents such as the LLP deed and, if applicable, the latest income tax return acknowledgment. If the LLP has not conducted any business or filed tax returns, this may not be necessary.

Step 5: Address Pending Filings

Make sure to file any overdue documents, including the LLP agreement if it was not filed within 30 days of registration. Also, ensure all overdue returns in Forms 8 and 11 for the relevant financial years are submitted before filing Form 24.

Step 6: Obtain a Chartered Accountant’s Certificate

Prepare a statement of accounts showing NIL assets and NIL liabilities, certified by a practicing Chartered Accountant. This certificate should be dated no more than 30 days prior to filing Form 24.

Step 7: Submit LLP Form 24

With all the necessary documents and certifications in place, file LLP Form 24 to officially close the LLP.

  • For Accounts Subject to Audit: The deadline is October 31st of the assessment year.
  • When Reporting with Form No. 3CEB: The due date is November 30th of the assessment year.
  • For Non-Audited Accounts: The deadline is July 31st of the assessment year.

How to Complete the ITR 6 Form

To ensure a smooth and accurate filing process for the ITR-6 Form, follow these recommended steps provided by the Income Tax Department:

  1. Part A
  2. Schedules
  3. Part B
  4. Verification

Adhering to this sequence helps organize your information and simplifies the completion of your income tax return.

No Documents Required

When filing the ITR-6 form, you do not need to attach any documents, such as TDS certificates. However, it is important to reconcile the taxes deducted, collected, or paid on your behalf by comparing them with your Tax Credit Statement Form 26AS.

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