Overview

To close an LLP, the directors must file a resolution with the Registrar of Companies within 30 days of its passing. Within 15 days of the resolution, a statement of assets and liabilities up to the date of winding up, attested by at least two partners, must be submitted. Additionally, a report on the valuation of the company's assets must be prepared. Following this, the majority of partners must declare that the LLP has no debts or that it can pay all debts within a specified period, not exceeding one year from the winding-up date.

When registering a business, you can choose options like an LLP (Limited Liability Partnership). If your company is registered as an LLP, you must file mandatory returns, regardless of business activity. Failing to file returns subjects the LLP to penalties under the LLP Act, and partners will also be liable for these penalties. Therefore, filing returns is mandatory for LLPs. 

In order to close LLP, there is a complete paper work that needs to be followed step by step. Also, legal compliances are required during the procedure of closing Limited Liability Partnership. Before starting the process, you must discover the legal process and compliances for the closure of LLP, this page will let you know all about how to close LLP.

Process of Closing LLP in India

• Pre-conditions before closure of LLP

These are the pre-conditions for the closure of LLP, that have to be followed before filing an application

1. LLP must have to file overdue returns in the Form 8 and Form 11 at the end of the financial year in which it closed its business or its commercial operations before filing Form 24.

2. LLP may also have to file income tax return up to the year in which it carries on business or commercial activities. 

3. LLP may ensure that there is no business or commercial business transactions in preceding 1 year.

4. Before making an application, LLP may have to sell all its assents and pay all its liabilities.

5. LLP also have to close its all bank accounts before filing application for closure.

6. LLP has to ensure that initial LLP agreement has been filed with ROC.

• Process of closure of LLP- Step by step

1. First of all, designated partner resolution has to be passed for applying for closure of LLP.

2. Another step is to take a written consent from all the partners for closure of LLP.

3. Get closed all the accounts of LLP.

4. Sell of the assets and pay off all the liabilities 

5. Now draft all the required documents for the closure

6. Now it is time to file the e-Form 24 with the registrar with following attachments as mentioned below:-

• Application for the closure of LLP

• Statement of accounts with disclosing NIL assets and NIL liabilities, which should be certified by Chartered Accountant in practice.

• Affidavit that should be signed by designated partners either jointly or severally.

• Copy of the acknowledgement of the all income tax return

• Copy of the LLP agreement

• Consent of all partners

Why to Choose CRSPL Business Consultants?

• Detailed Guidance:- The experts of CRSPL will provide your every single detail and guidance so that you do not miss any step. We will keep you updated about eligibility criteria, document requirement and processing of application. 

• Preparation & Assistance:- CRSPL assists you in preparing all necessary documents for the successful application and guide you for further process. 

• Application Submission and Approval:- CRSPL handles the entire application submission process by ensuring all the details are accurate and in proper manner on behalf of our client.

• Expert Consultants:- For any query related to business or company, you can meet business consultants at CRSPL, they are readily available to assist you.