Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

Closing LLP which are non operational since its inception

503 views

Save Share

gsark

24 Points Posted on 28 July 2021

Hello, I have a LLP which was incorporated in October 2019. After incorporation covid hit on February and I was not able to operate it anymore. Till that time I had not done any business. I also don't have any bank account associated with it. GST filing is nil return up to December 2020 and applied for closure for the same.

Now I have consulted with some one and he told me that for proceeding with closing of LLP a hefty fine will be levied. But as far I have heard as per MCA amendment May 2017 it is possible to close it without filing any overdue return. is it possible?

Kindly suggest me a better way to proceed. I am in no position to pay those hefty fines for the business which I have not commenced. Financially I am stretched in covid. I want to just close this smoothly without bearing hefty penalties.

Please suggest and guide me something. It is bothering me

Thanks in advance.

Replies (2)

Quick Summary

This discussion addresses the challenge of closing a Limited Liability Partnership (LLP) that has been non-operational since its incorporation in 2019 due to unforeseen circumstances like the COVID-19 pandemic. The user has not conducted any business, opened a bank account, or filed any compliance returns, though they have filed nil GST returns. They are seeking advice on how to close the LLP smoothly and avoid significant fines, referencing a potential MCA amendment from May 2017 that might allow closure without filing overdue returns. The user is financially strained and wishes to close the entity without incurring hefty penalties.