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Closure of LLP

CLOSURE OF LLP

Are you paying high compliances cost but not running the business operations? Get closure of your LLP with proper process and avoid paying heavy costs.

APPLY FOR CLOSURE OF YOUR LLP NOW

    OVERVIEW OF CLOSURE OF LLP
    • LLP is a separate legal entity, creation of LLP is done a proper proceeding prescribed by law thus when it comes to closure of LLP there is also a proper procedure under law to be followed.
    • An LLP may be closed through any of the two modes-
      • Winding-up.
      • Striking off its name from Register of LLP.
    • In case if the Limited Liability Partnership required to close down its business or inactive for a period of at least one year or if it is inoperative from the date of incorporation, then LLP can make an application to the Registrar of Companies (ROC) for removing the name of the LLP from the register of LLPs.

    DOCUMENTS REQUIRED FOR CLOSURE OF LLP

    Statement of Accounts
    Statement of Accounts

    Detailed account statement of the LLP.

    Bank Details
    Bank Details

    Copy of bank current Account Statement /Certificate.

    Partners’ Details
    Partners’ Details

    • Pan card.
    • Aadhar card of all the partners.
    • Latest Address Proof of all Partners.

    Creditors’ NOC
    Creditors’ NOC

    NOC for closure from creditors to LLP.

    Details of LLP
    Details of LLP

    • PAN card of LLP.
    • LLP Agreement.
    • Latest Income Tax Return acknowledgement.

    DSC
    DSC

    DSC of the Designated Partner.

    PRE-REQUISITE FOR CLOSURE OF LLP
    • The LLP which has ceased to run its commercial activities for minimum 1 year or LLP which has not commenced business activity after formation.
    • LLP is firstly required to obtain letter of closure of account by the bank after closing its Bank Account, if any.
    • LLP is required to obtain consent from all the partners and creditors.
    • Obtaining affidavit from the partners declaring that LLP is not carrying any of the commercial activities for the period of minimum 1 year or LLP which has not commenced business activity after formation.
    • LLP must file all its forms and returns of annual compliance up-to-date before applying for closure of LLP.

    PROCEDURE OF STRIKE OFF THE LLP

    1
    Filing of application

    For striking off the name of LLP to ROC in Form-24 to the concerned Registrar with consent of all partners.

    2
    Attaching following documents with the form-24
    • Detailed application(copy)
    • Authority to make the application (copy)
    • Consent of all partners. (copy)
    • NOC from concerned Regulatory Authorities with which the LLP is registered.
    • Copy of indemnity bond /undertaking for striking off name.
    • statement of assets and liabilities duly certified by auditor/chartered accountant in practice as true and correct (compulsory Copy).
    • acknowledgement of latest Income tax return (compulsory Copy)
    • Evidence letter for closure of the bank account.
    • Indemnity Bonds to indemnify any person legally claiming during strike off
      of the LLP.
    • Duly sworn Affidavits from all partners declaring that all the data provided to be true.
    3
    Publication of Notice

    By the Registrar on the website for a period of one month for the notice.

    4
    Name of LLP will successfully be strike off

    From the register, and notice published in the Official Gazette by the registrar on the expiry of one month.

    WHY CLOSURE OF LLP IS REQUIRED?
    • No non-compliance risk – Legal shut down of LLP avoid the dispute which might arise in future.
    • No risk of high penalties – Penalties occurring due to any default will not get increased due to closure of LLP. However liability till date of closure need to be paid off.
    • No Yearly compliance cost to be paid – Closure of firm in proper manner will end the requirement of payment of various cost which might arise due to non-intimation of closure.
    • No risk of getting into default – Even after stopping the running of operation , risk of default may arise due to unawareness of closure. Legal closure will help in avoiding such defaulting liabilities.

    RELATED SERVICES

    ROC Annual Filing of LLP
    E-KYC of Partners
    Change in LLP Agreement
    Adding of Partner to LLP
    Removal of partner from LLP
    Change in Registered Office
    Change in name of LLP
    Frequently ASKED Questions

    How can one proceed for closure of the LLP?

    The business carried under Limited Liability Partnership can be closed by any of the following ways:

    • Voluntary winding-up of the LLP or
    • Compulsory winding-up of the LLP which is initiated by Tribunal.

    How LLPs in India can be closed at the easiest way?

    This is the easiest way to close the LLP without involvement of the Liquidator or Tribunal is by applying LLP’s name for strike off by way of declaring itself as defunct for the time period of one year or more.

    Which LLP is eligible to apply for strike off of its name from Register of Companies?

    Following LLP is eligible to apply for strike off of its name from Register of Companies-

    • The LLP which has not commenced any business since incorporation and a period of one year shall be passed since the incorporation, or
    • The LLP which has ceased to operate its business, a period of one year shall be passed since the incorporation.

    Whether appointment of Liquidator is required for the procedure of strike-off?

    No, the appointment of a liquidator is not required for the procedure of strike-off. The appointment of a liquidator is applicable only in case of Dissolution of the Limited Liability Partnership through voluntary winding up or compulsory winding up.

    Can striking off of LLP in India be proceeded if the LLP has assets and liabilities in its books of accounts?

    For Limited Liability Partnership it is first required to close the books of accounts after distributing the assets and paying of the liabilities. The chartered accountant in practice shall duly certified its statement. The application for striking off of the LLP is required to be made within 30 days from the date on which the statement was prepared.

    What should be done LLP is still operating till date and wants to close its business?

    In case the Limited Liability Partnership is still operative, the Partners may wait for the completion of one year since the last transaction in the name of LLP for opting strike-off method of closure of LLP. But, In case the Partners do not wish to continue LLP for a further period, alternatively they can opt for the winding-up procedure with the help of Liquidator.

    Is it required to apply for surrender of PAN Card of the LLP after strike off of the LLP?

    Yes, after strike off of the LLP ,it is compulsory to apply for the surrender of PAN Card. (This service is not included in our package)

    What are the conditions for Filing Form 24?

    The conditions for Filing Form 24 are-

    • The LLP has ceased its commercial activities for the period of 1 year or more.
    • The LLP which has never commenced business activity.
    • Closure of Bank Account of LLP before filing the form LLP and should have obtained letter of closure of account from the Bank.
    • Obtained consent of all the partners and creditors of LLP.
    • Affidavit by the partners that the LLP is not carrying on any commercial activities for the period of 1 year or more.
    • Any pending returns must be filed before filing LLP Form 24.

    Do the applicant requires to present physically for filing application for closure of LLP?

    No, You are not required to be physically present for the filing application for closure of LLP. LegalDisha provides you online services and assistance for the same.

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