Closure of llp

LLP 380 views 2 replies

PRAVESH RATHI

CHARTERED ACCOUNTANT

54 Points Joined October 2010

Dear All Experts,

We had incorporated a LLP in 2012 & no annual compliance for the LLP i.e. Form 8 & Form 11 were filed since incorporation.Now we intend to wind up the LLP. After discussion with various professionals of our field we filed Form 8 & Form 11 for FY 2015-16 as we were told that for winding up of LLP atleast one year Form 8 & Form 11 were to be filed ( which we did , after payment of late fees).

After filing the above forms when we tried to upload Form 24 for winding up then the form showed showed Prescrutiny errors that Form 8 & Form 11 for FY 2013-14 & FY 2014-15 are not filed , please file the same.

Incase we file Form 8 & Form 11 for the above pending financial years then the additional fees comes out to be very huge.

My question for the above scenario is that incase all the compliances are to be completed then what is the use of Fast track exit scheme ? All of you are requested to please share your opinions.

Replies (2)

ANCHAL YADAV

STUDENT

42 Points Joined February 2015

Dear Sir,

Before winding up of LLP filing of all pending financial year has to be completed only after that a LLP would be closed.

And in my opinion as far as FAST Track Exit Scheme is concerned it works only when filing of previous year is complete because FAST Track Exit Scheme helps the non-operating companies in getting their names struck off at cheaper cost with lesser formalities as compared to earlier Schemes for Exit of non-operating companies and it is not a method to evade from paying additional fees for filing of pending financial years.

CS Vishal Mehta

Self Employed

436 Points Joined December 2008

Daily penalty of Rs. 100/- pursuant to section 69 of LLP Act, 2008 is too much and not affordable for routine LLP(s) and this is the only reason due to which plenty of LLP(s) became non-active even after significant performance.

Evasion of additional fees are not intended but such payment of additional fees should be justified and should be within affordable limits besides, besides one time exit opportunity must be given to the llp(s) which are not carrying any business since long ??

How defunt LLP can afford penalties of more than one lacs ??

let the MCA notice come on llp and let MCA file the case to the respective courts, this can be the only way to save penalties as judge penalises parties based on affordability and circumstances.