LLP Compliance Defaults for 4 Years: Options to Avoid Strike Off and Reduce Penalties

Rohan Gupta co-founded a small LLP in Indore with a business partner around early 2019. The venture ran actively for about two years, primarily handling logistics consulting projects. By mid-2021, business had dropped to near zero, and Rohan had informally decided to exit. He instructed his chartered accountant to file the necessary forms with the Ministry of Corporate Affairs to record his resignation as a designated partner. The CA acknowledged this repeatedly but never actually filed it.

By March 2024, Rohan discovered — almost by accident, while applying for a bank loan — that his name still appeared as a designated partner on MCA records. Four consecutive years of non-compliance had piled up: unfiled Form 11 (annual returns), Form 8 (statement of accounts), and the resignation form. Late fees had compounded significantly. His first instinct was to ask the same CA to fix things. That only added to the confusion without resolving the underlying defaults.

Rohan then approached Advocate Sudhir Rao. Each default year was reviewed carefully, along with the applicable penalty structure and whether voluntary strike-off was even realistically available given the LLP's status. A structured plan was prepared: first regularising filings for years where activity existed, then evaluating Form 24 eligibility for a clean closure, and simultaneously documenting the CA's failure to file the resignation on time. Within a few months, Rohan's exposure was substantially reduced and a clear exit pathway was in place. Getting specialised guidance on MCA compliance law, rather than relying on general professional advice, made a measurable difference to both the timeline and the financial outcome.

You can read about this case in detail at https://sudhirrao.com/llp-compliance-default-missed-filings-strike-off-penalty-opt/