The Registrar of Companies (RoC) has announced a compliance audit initiative targeting dormant Limited Liability Partnerships (LLPs) across India. This move comes amid concerns that several inactive LLPs may be misused for financial irregularities, money laundering, or evading statutory obligations. As part of the drive, the RoC will identify LLPs that have not filed mandatory forms like Form 11 (Annual Return) and Form 8 (Statement of Accounts and Solvency) for two or more consecutive years and classify them for further scrutiny.

According to the Ministry of Corporate Affairs (MCA), the audit will include verification of KYC details of designated partners, registered office addresses, PAN status, and financial disclosures. LLPs failing to respond to RoC notices or lacking justifiable reasons for inactivity may face consequences such as striking off from the register, disqualification of partners, or initiation of adjudication proceedings. The RoC aims to clean up the registry and ensure that only genuinely operational and compliant LLPs remain in the official records.

This action is part of a broader regulatory push to improve corporate governance and ensure that dormant entities do not act as shell structures or conduits for suspicious transactions. Experts suggest that LLPs that have ceased operations should consider filing for dormant status formally or voluntarily closing their business to avoid penalties. The MCA has also advised LLPs to regularize pending filings immediately and maintain updated records to avoid being flagged in the ongoing audit campaign.