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What are the reasons to close the LLP?

A business may be required to be closed due to various reasons, like non-operation, closure of business, recurring losses, the passing of the key managerial person, If the LLP is Registered for any specified project and its has been completed, the dispute among promoters, un-ability to pay debts of the LLP, etc.
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When we can apply for LLP closure?

In case the LLP wants to close down its business or where it is not carrying on any business operations for the period of one year or more, it can make an application to the Registrar of Companies for declaring the company as defunct and removing the name of the LLP from its register of LLP’s. As per Rule 37 of LLP Rules if a LLP wants to strike off it should not carrying on any business operations for the period of one year or more.

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Which form is required to be filed with ROC for making application under fast track exit mode?

An application is required to be made in e-Form 24 to the Registrar of Companies for Striking off the name of the LLP under Rule 37(1)(b) and 37(1A) of LLP Rules.

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    Documents Required For Close Limited Liability Partnership

    • Affidavit from all partners declaring that they are the designated partners of LLP and they are not disqualified under the act
    • Application to ROC for Closure
    • Consent of Creditors for the closure
    • Indemnity bond for pending tax dues
    • Statement of Accounts showing no balances left in llp
    • Application stating closure of Bank Account
    • Resolution passed by partners in meeting for closure of LLP
    • Consent of partners for closure of LLP

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