LLP Closure
Get professional advice from our experts to close your inactive/inoperative Limited Liability Partnership (LLP).
What is Limited Liability Partnership (LLP) Closure?
When the things do not work out properly a business may have to be shut down. When existence of the LLP as a legal entity comes to an end it is known as the Closure of 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, the dispute among promoters, un-ability to pay debts of the LLP, etc.
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 it has been completed, the dispute among promoters, un-ability to pay debts of the LLP, etc.
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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- LLP Closure (LLP Form No. 24)
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.
Document Information
Documents Required For Limited Liability Partnership (LLP) Closure:-
Steps
Process Involved
STEP – 1
Close the Bank Account of the LLP
STEP – 2
Sell all the assets, if any and pay off all the liabilities of the LLP, if any
STEP – 3
Take the written consent of all partners for strike off the LLP
STEP – 4
Drafting of all the requisite documents for closure of LLP
STEP – 5
Filing of form 24 with the Registrar.
Need Help?
FAQs
A defunct LLP can make an application to the Registrar with the consent of all partners of the LLP for striking off its name from the register. A defunct LLP refers to an LLP that has never started business or is not carrying any business for the immediate past one year and has no assets and liabilities.
Following LLP are eligible to Close their LLP
- LLP is inoperative from the date of incorporation or inactive for a period of at least one year
- LLP does not have any assets / liabilities as on the date of application.
- Closure of current account of the LLP has been done
- LLP Obtain the consent of the parties i.e. any other authority, creditors and partners.
Following Documents required for closing the LLP
- Id Proof and Address Proof;
- Statement of account disclosing nil assets and nil liabilities;
- Copy of latest Income Tax Return
- Copy of the initial limited liability partnership agreement;
- Copy of Affidavit and Indemnity Bond signed by the designated partners;
- Consent by each partner to make application;
- Authority Letter signed by each designated partner.
- Bank Account closure certificate
No, The LLP can be closed if the LLP is inoperative from the date of incorporation or inactive for a period of at least one year immediately preceding the filing of the application.