LLP · Trouble
Our LLP has piled up late fees and defaults — what are the exits?
The short answer
An LLP drowning in late fees — ₹100 per day per form with no cap on Forms 8 and 11 — has two realistic exits. Clear the backlog and compound the offences through LLP Form 31 under Section 39, using LLP Form 32 to rectify defects in earlier filings and LLP-ADJ to appeal any adjudication order under Section 76A. Or cease operations and pursue strike-off through Form 24. The compounding route keeps the LLP alive; strike-off ends it.
What gets filed with MCA
Application for compounding of an offence under the LLP Act
Section 39, LLP Act 2008
Addendum to rectify defects in a filed LLP form
LLP Rules 2009
Appeal against an adjudication order (LLP)
Section 76A, LLP Act 2008 (as amended 2021)
The sequence
- 1Audit all overdue filings and calculate accumulated late fees on Forms 8 and 11
- 2Rectify defective earlier filings through LLP Form 32
- 3Clear pending returns and file LLP Form 31 to compound offences under Section 39
- 4If an adjudication order is disputed, file LLP-ADJ under Section 76A
- 5If the LLP is not worth saving, pursue strike-off through Form 24 instead
Do it with us — or check it yourself first
Questions founders actually ask
How bad can late fees get on LLP annual filings?
Late fees run at ₹100 per day per form, with no cap on Forms 8 and 11. This is typically what makes accumulated defaults expensive to unwind.
Can we compound offences and keep the LLP running?
Yes. LLP Form 31 under Section 39 is the application for compounding. Use LLP Form 32 to fix defects in earlier filings, then clear the backlog to restore compliance.
What if we would rather shut the LLP than pay everything?
Strike-off through Form 24 is the exit for an LLP you no longer want to maintain. That path ends the entity rather than restoring it to good standing.
Last verified 2026-08-24 against MCA V3 records and ICSI reference material. Form-level deadlines and penalties live on the linked form pages and update there.