Closure of a Limited Liability Partnership
Close 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.
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Reasons for dissolution of LLP in India
Avoid Compliance
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.
Avoid Fines & Penalties
To avoid fines and penalty for late filing, it is better to officially Wind Up LLP’s which are inactive.
Mandatory Filings
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.
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
Close Your LLP in 3 Easy Steps
Step 01
Fill up the registration form
Select any package suits your requirement · Fill up the form which will take less than 10 minutes · Make payment through secure payment gateway. Step 02
BookMyTM is Here to Help
Your queries will be answered quickly and effectively · 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 Step 03
Your LLP is closed
All these takes 18 – 20 working days* *Subjected to Government Processing Time
The Process of Closure of LLP
- 1
Day 1 - 2
Consultation on Closure of LLP · Collection of Information · Collection of Required Documents (Scanned Copies) · Review of Documents and Information provided
- 2
Day 3 - 4
Drafting of required documents · Drafting of Affidavit, indemnity bond
- 3
Day 5 - 8
Sending of documents to get signed from applicants · Receipt of signed documents from applicants
- 4
Day 9 - 11
Preparation of online application · Filing of online application · Filing of LLP form 24 with MCA
- 5
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.
Frequently Asked Questions
Answer:File LLP Form 24 online with the MCA along with required documents.Obtain NOC from relevant regulatory authorities (e.g., SEBI or RBI).The Registrar publishes your strike-off application on the MCA website for one month for public comments.If no objections arise and the Registrar is satisfied, they will order the LLP’s name to be struck off from the LLP Register. test.accendoz.com
Answer: Closure options include:Declaring the LLP defunct,Voluntary winding‑up, orCompulsory winding‑up via Tribunal. test.accendoz.com
Answer:Submit the prescribed form with documents. The Registrar publishes the strike-off notice on MCA’s portal for one month. Once approved, the LLP is marked “struck off (defunct)” in the register. test.accendoz.com
Answer:The simplest method is a strike-off by declaring the LLP defunct (non‑operational for one year), as it avoids appointing a Liquidator or Tribunal involvement. Specific conditions must be met. test.accendoz.com
Answer:No. A liquidator is only required for voluntary or compulsory winding‑up. It is not needed for strike-off. test.accendoz.com
Answer:An LLP that has either never commenced business since incorporation or has ceased operations for at least one year can apply for strike-off. test.accendoz.com
Answer:You must settle all assets and liabilities, then prepare a Statement of Assets & Liabilities certified by a practicing CA. The strike-off application must be filed within 30 days of preparing that statement. test.accendoz.com
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