After shell firms, govt looks to weed out defunct LLP firms

Most experts expect de-registration of defunct LLP firms to gather steam in the coming months

After cracking its whip on suspected shell companies, the government has turned its focus on the growing number of Limited Liability Partnership (LLPs) firms. In such a partnership, partners can’t be held liable for another’s misconduct or negligence.

As a first step, the government is in the process of identifying and deregistering inactive LLP firms. “The Registrar of Companies (RoC) is on a spree to strike off inactive LLPs from its register,” says Vikas Gupta, partner, Nangia & Co. 

The government has been on a drive against generation of black money and money laundering through use of shell companies. In his Independence