Close a Limited Liability Partnership

Closure of a Limited Liability Partnership

As LLP is a separate legal entity, it is created by following a legal proceeding hence when it comes to its closure there is a proper legal procedure to be followed. An LLP may be closed through winding-up or through striking off its name from Register of LLP. The winding-up may be a costly or time-consuming affair for many LLPs as it includes approval from Tribunals and involvement of Liquidators. Therefore, the LLP that has been non-operative since its formation or for more than a year, may proceed the easy way of exit i.e. Strike-off. The LLP will be declared struck-off after the publication of notice by Ministry. Once it is struck-off, the LLP cease to be in existence in eyes of law.

₹ 899 All Inclusive

Reasons for dissolution of LLP in India

To avoid compliance and filing responsibilities for the LLP’s which are not active.

The statutory compliances of maintaining an LLP are higher than the cost of winding up. If the LLP is dormant it’s better to wind up than fulfill the compliances.

To avoid fines and penalty for late filing, it is better to officially Wind Up LLP’s which are inactive.

All LLPs registered in India have to file the annual returns and statement of accounts for each Financial Year irrespective of annual revenue or profit disregard of its working. LLP that hasn’t opened a bank account or commenced business activity would have to file the following filings each year to maintain LLP compliance and avoid penalty.

Dissolve Limited Liability Partnership Online

Documents Required Closing an LLP

PAN Card Original PAN Card of the LLP and Copy of PAN of all partners are to be submitted
LLP Agreement LLP Agreement with amendments if any
Address Proof Latest utility bill copy
Rent Agreement If the place is rented
Accounting Information The financial statement of the LLP with copy of acknowledgement of latest Income Tax Returns
NOC from Creditors NOC for strike-off to be obtained from secured creditors if any
Statement of Assets Statement of Assets and Liabilities of LLP certified by auditor/charted accountant in practice.

Pre-Requisites for LLP strike off

Non-operative Stage

The LLP must discontinue its operations for a minimum period of 1 year

Fully Complied

The LLP must be fully complied with Annual Compliance requirement and more

Closure of Bank Account

The LLP must close all the bank accounts opened in the name of the LLP

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Consultation on Strike-off LLP
Provide details & documents required for Strike-off LLP
Drafting Documents required for Strike-off
Sending documents to get signed from the applicants
Receipt of signed documents from the applicants
Filing of application for strike-off LLP
Your LLP is closed
All these takes 18 – 20 working days*
*Subjected to Government Processing Time

The Process of Closure of LLP

Day 1- 2
Consultation on Closure of LLP
Collection of Information
Collection of Required Documents (Scanned Copies)
Review of Documents and Information provided
Day 3 – 4
Drafting of required documents
Drafting of Affidavit, indemnity bond
Day 5 – 8
Sending of documents to get signed from applicants
Receipt of signed documents from applicants
Day 9 -11
Preparation of online application
Filing of online application
Filing of LLP form 24 with MCA
Day 12 – 20
Government processing time to approve strike-off
The notice of strike-off will be published on approval by MCA
Your LLP is closed*
*Subjected to Government Processing Time.

Enquiry

FAQ

What is the procedure of LLP Strike-off?

The procedure to dissolve LLP is :

1)The applicant needs to file online LLP form 24 with MCA, with the required documents.

2)NOC has to be obtained from the regulatory authority governing the LLP e.g. SEBI or RBI.

3)The registrar shall publish the content of the application filed by the LLP on its website for a period of One Month for information to the general public and receive the representation on the same.

4)Upon expiry of the period specified above, where no reply or representation is received, the Registrar on satisfying himself for sufficient cause for the closure of the LLP may pass an order to strike-off the name of the LLP from the Register of the Limited Liability Partnership.

How can I proceed for closure of the business under the name of LLP?

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

Declare LLP as defunct; or

Voluntary winding-up of the LLP; or

Compulsory winding-up of the LLP (initiated by Tribunal)

What is the procedure for closure of LLP in India through mode of striking off?

The procedure of striking off requires the filing of the prescribed form along with the documents as listed in the next FAQ. The Registrar shall further file publish the application of striking off on the website of MCA for a period of 1 month for receiving any representation from the general public. The application once approved will affect the change of status of LLP as “Stuck off (defunct)” in the register and master data of LLP.

What is the easiest way of closure of LLP in India?

The name of Limited Liability Partnership can be applied for strike off by way of declaring it as defunct for a period of one year or more. This is the easiest way to close the LLP as there is no involvement or requirement of the Liquidator or Tribunal. To choose this mode, few conditions are required to be fulfilled (prescribed below).

Whether a Liquidator is required to be appointed for this procedure?

No, the appointment of a liquidator or an application before Tribunal is not required to be made. The appointment of a liquidator is applicable in case of Dissolution of the LLP through voluntary or compulsory winding up only.

Which LLP can make an application to strike off its name from Register of Companies (LLP)?

The LLP which has not commenced any business under its name since its incorporation or the LLP which has ceased to operate can make an application under this route. In both cases, a period of one year shall be passed since the incorporation.

Can I proceed for strike off LLP in India if the LLP has assets and liabilities in its books of accounts?

The Limited Liability Partnership requires to first closing its books of accounts after distribution of assets and payment of the liabilities. The statement shall be duly certified by the chartered accountant in practice. The care should be taken that the application of striking off of the LLP shall be made within 30 days from the date of the statement prepared.