Close a Limited Liability Partnership
This means all company assets are sold for cash with which no payments are made to lenders without support holders and which it is divided among them. The LLP Act of 2008 identifies two ways to wind up an LLP which can be characterized as follows: voluntary winding up and compulsory winding up.
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INTRODUCTION
Closure of a Limited Liability Partnership
Whether a sole proprietorship in India may be converted to a limited liability partnership (LLP) At least two candidates must be Indian residents, and there must be more than one who steps forward to join the fellowship. An Indian address is required for a registered office in a factory or place of business.
ADVANTAGES
Reasons for dissolution of LLP in India
To avoid compliance and filing responsibilities for the LLP’s which are not active.
The expense of winding up is less than the statutory compliances associated with keeping an LLP. It is preferable to wind up an LLP rather than complete the compliances if it is dormant.
To avoid fines and penalty for late filing, it is better to officially Wind Up LLP’s which are inactive.
Irrespective of their yearly income or profit, all limited liability partnerships (LLPs) that are established in India are required to submit annual returns and statement of accounts for every fiscal year. To stay in compliance and avoid penalties, an LLP that hasn't started operating or opening a bank account must submit the following forms annually.
A LIST OF DOCUMENTS
Documents Required to close LLP in India
PAN Card
As identification, each partner must provide their PAN number along with the firm's.
The LLP Agreement and any updates made thereto
Address Proof of firm
A rental agreement and one utility bill (such as a gas receipt, water bill, electricity bill, or property tax bill) are required if the registered office space is rented. Additionally, the landlord's NOC will be provided.
Accounting Information
The LLP's financial statement accompanied with a copy of the current income tax return acknowledgement.
NOC from Creditors
NoC to be received from secured creditors, if any, for strike-off
A copy of the acknowledgement of the most recent income tax return is attached to the LLP's financial statement.
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Pre-Requisites for LLP strike off
Non-operative Stage
The LLP is required to halt operations for a minimum of one year.
Fully Complied
In addition, the LLP must to adhere to the Annual Compliance requirement in full.
Closure of Bank Account
All bank accounts created in the LLP's name must be closed.
Strike off Your LLP in 3 Easy Steps
1. Respond to Quick Questions
- Our questionnaires take less than ten minutes to complete.
- Give the essential information and paperwork needed to convert a proprietorship to a partnership.
- Pay using a safe and secure payment gateway.
2. Experts are Here to Help
- Dedicated Relationship Manager
- composing the paperwork needed for a strike-off
- submitting an application for strike-off closure
3. Your Business is Established
- All it takes is 21 working days*
Process of winding up of LLP
Day 1 - 2
- Talking about and gathering fundamental data
- Give the necessary paperwork.
Day 3 - 8
- Review of the details and documents furnished
- drafting the indemnification bond, affidavit, and other paperwork
- Give a properly completed indemnification bond and affidavit.
- After reviewing, provide signed copies of the papers.
Day 9 - 13
- Getting the online application ready
- LLP Form 24 submission to MCA
Day 14 onwards
- Processing period for government approval of strike-off
- Following approval, the MCA will publish the notice of strike-off.
Explore dissolution of LLP
Frequently Asked Questions
The process for dissolving an LLP is:
1) The applicant must submit LLP form 24 online to MCA along with the necessary paperwork.
2) The regulatory body overseeing the limited liability partnership, such as SEBI or RBI, must provide the NOC.3) The registrar is required to receive representation on the application filed by the LLP and to make the material of the application available to the public for one month on its website.
4) After the above-mentioned time frame has passed and no response or representation has been received, the Registrar may issue an order to remove the LLP’s name from the Limited Liability Partnership Register after determining that there is sufficient reason to close the LLP.
- The required form must be filed along with the documents listed in the following FAQ in order to initiate the striking off procedure. In order to receive any comments from the public, the Registrar must additionally submit and publish the application for striking off on the MCA website for a duration of one month. Once the application is accepted, the LLP’s status will change to “Stuck off (defunct)” in the register and master data.
The Limited Liability Partnership organization’s business may be closed at any time by the partners in any of the following ways:
Declare LLP to be inactive.
LLP closing up voluntarily; or
Mandatory liquidation of the LLP (proposed by the Tribunal)
- Declaring a Limited Liability Partnership inactive for a year or longer is equivalent to applying for the partnership’s name to be struck out. Since the Liquidator or Tribunal are not involved or required, this is the simplest method to close the LLP. There are a few requirements that must be met in order to select this option (described below).
- An application using this route may be made by an LLP that has discontinued operations or has not started any company under its name since its incorporation. A year must have passed since the incorporation in both situations.
No, it is not necessary to file an application with the Tribunal or appoint a liquidator. Only in cases of voluntary or forced winding up of the LLP would the appointment of a liquidator be appropriate.