ROC, Delhi & Haryana in its drive to clean the registry has issued the notice of striking off to 1171 LLP's under Section 75 of LLP Act, 2008 read with Rule 37 of LLP Rules, 2009.
This comes after the regular pressure from the Govt to streamline the entities and force them mentally to think that compliances are not optional in nature and thin line to observe here is: you cannot be allowed to run businesses if you are taking annual compliances for granted.
In the previous time, there used to have a leisureliness in the mind of promoters w.r.t. to ROC Compliances and they presumed it to be the burden and never bothered to make the non-compliances good.
But ever since, ROC is being strict day-by-day in the near past and directors were disqualified)
Here are the excerpts of the Notice issues to 1171 LLPs.
1. Notice is hereby given that the Registrar has a reasonable cause to believe that "The following LLPs mentioned in the Annexure 'A' (List of 1171 Nos. of LLP) have not been carrying on any business or operation for a period of two immediately preceding financial years." And these LLPs have to file their Financial Statements (Form — 8) and Annual Return (Form — 11) for the Financial Year 2015-16 and 2016-17 but they have failed to do so. Therefore, the Registrar has reasonable cause to believe the same for the purpose of taking suo-moto action for striking off the name of these LLPs" It is, therefore, proposes to remove/Strike off the names of the said LLPs from the Register and dissolve them unless a cause is shown to the contrary, within one month from the date of this notice.
2. Any person objecting to the proposed removal/striking off of the name of the LLPs from the register of LLPs may send his/her objection to the office address mentioned hereinabove within one month of the date of publication of this notice
Cause of the Notice?
It is important to notice here that these LLP's were not carrying on any business or operation for a period of two immediately preceding financial years and also had failed to file their Financial Statements (Form — 8) and Annual Return (Form — 11) for the Financial Year 2015-16 and 2016-17.
Why did this happen?
Many Businessmen considered LLP at par with normal Partnership Firms and they wondered as if they have to file Income Tax Return only. Further, there have been instances where even Form 3 has not been filed which consist of the LLP Agreement which is the Charter of the LLP like MOA & AOA as in the case of Companies.
This is imperative to note here that filings of Form 3 are mandatory in nature and it can not be left out.
Why did ROC issue notice?
Govt. is now taking ROC matters seriously unlike before and thus Registrar had the reasonable cause to believe that non-compliances will no do and for the purpose of taking suo-moto action for striking off the name of these LLPs. This is why MCA has come up with the Notice.
What to do?
If there is no reply to the notice, ROC shall remove/Strike off the names of the said LLPs from the Register and dissolve them unless a cause is shown to the contrary, within one month from the date of this notice.
How to raise an objection?
Well; if there is any person objecting to the proposed removal/striking off of the name of the LLPs from the register of LLPs, they may send his/her objection to the office address mentioned within one month of the date of publication of this notice.
If ROC finds the objections valid, they will ask the LLPs to make good of non-filings case-to-case basis.
You can view the Notice Original Copy here or download it too for your reference.
The entire contents of this article are solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation by the Author. Compliance Calendar LLP and the Author of this Article do not constitute any sort of professional advice or a formal recommendation. The author has undertaken utmost care to disseminate the true and correct view and doesn’t accept liability for any errors or omissions. You are kindly requested to verify and confirm the updates from the genuine sources before acting on any of the information’s provided hereinabove. Compliance Calendar LLP shall not be responsible for any loss or damage in any circumstances whatsoever.