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Closing LLP which are non operational since its inception

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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.

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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.