The Ministry of Corporate Affairs (MCA), via Notification No.
G.S.R. 475(E) has introduced the Limited Liability Partnership
(Amendment) Rules, 2024. This amendment shall take effect
from 27 August 2024.
Highlights of the notification
A major change introduced by this amendment is the
centralization of the strike-off process for Limited Liability
Partnerships (LLPs). Starting from the effective date mentioned
above, LLP Form 24, which is utilized for applying for the
strike-off of LLPs, will be handled by the Centre for
Processing Accelerated Corporate Exit (C-PACE) rather than the
respective state registrars. This reflects a prior adjustment where
the strike-off process for Companies was also centralized under
C-PACE.
Consequently, both companies and LLPs will have their strike-off applications managed exclusively by C-PACE, signifying a more streamlined and unified method for corporate exit procedures.
Our Comments
In summary, the said notification brings the below-mentioned
changes:
Centralization of Strike-Off Process
- The amendment centralizes the strike-off process for LLPs.
- From 27 August, 2024, LLP Form 24, used for applying for the strike-off of LLPs, will be processed by the C-PACE instead of the respective state registrars.
Consistency with Corporate Strike-Off Process
- This amendment mirrors a previous shift where the strike-off process for Companies was also centralized under C-PACE.
- Both companies and LLPs will now have their strike-off applications processed solely by C-PACE.
Streamlined and Unified Approach
This move marks a streamlined and unified approach to corporate
exit procedures, enhancing efficiency and reducing procedural
delays. This notification is in line with the announcement made in
the Union Budget 2024.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.