Closing a Limited Liability Partnership
There are times when a business just does not seem to be working out for you and it is better in that case to just wind it up. Whether it is a sole proprietor or a limited company or even a partnership, just as all these entities have a process for registration, they all have a similar process for dissolving them as well. It is important to close a partnership so that it becomes common public knowledge that this company or the partnership does not exist anymore and the public can be careful in their dealings if somebody decides to use the name.
The closing a Limited Liability Partnership can be a tedious task that can easily take up to two months or even more. As such, it is important that all of the partners are quick enough to complete all of the procedures and the paper work that is required in order to dissolve their partnership to their mutual understanding.
Once the partners have decided to closing a Limited Liability Partnership, they must first file a resolution which states this clearly that they have decided to end their partnership. It should be done with the Registrar within the next 30 days of passing of this board resolution. Once they have filed the resolution, the majority of the partners have to make a declaration that their closing a Limited Liability Partnership or LLP, does not have any debts outstanding or that they are in the position to pay off all of their debts within a given period. The period which they have mentioned however should not exceed one year from the date of the decision of the closing a Limited Liability Partnership
Complete statements of the assets and the liabilities for the time period of the last closure of the account to the date of winding up of the LLP has to be submitted and this has to be attested by at least two of the partners from the Closing a Limited Liability Partnership. All of this has to be done within the next 15 days of passing the board resolution for the winding up the business. A report should also be prepared where there is a complete valuation of the assets by the Closing a Limited Liability Partnership or LLP.
Procedure for Closing a Limited Liability Partnership
- Four working days
- 30 working days
- Ten working days
Form 24 has to be filed to the RoC as well as the declaration form which has to be from the partners. The main application has to be submitted as well as affidavit which clearly states that whatever information is provided by the LLP is true to the knowledge of all of the partners. An indemnity bond also has to be submitted. All of these documents must be clear and should provide detailed information so that Closing a Limited Liability Partnership can be processed further.
Once all of the above steps are completed and the documents have been submitted successfully, the Registrar will then publish on their website a notice for a period of one month, which would contain details mentioned in the application form that was given by the Closing a Limited Liability Partnership.
The Registrar will then remove the name of the Limited Liability Partnership from the register after one month of being published on their website. The Registrar will then issue a notice that would be published in the Official Gazette which would state that the particular Closing a Limited Liability Partnership has been legally closed or dissolved so that it becomes public knowledge and people can be careful in their dealings as a company by that name does not exist anymore.
How we can help?
The process of closing a Limited Liability Partnership is a tedious task like mentioned already which obviously requires an expert to help, guide and process the required information and the documentation. Most of the times, these tasks take time and dealing with the government body is not very easy and not everyone's cup of tea. If on the first go certain documents are not complete or they lack something, the whole process and the time span taken for submitting the application would be lost and you would have to start over again. As such, hiring an expert or a professional in the field, we will give you a clear advantage on getting it done hassle free and easily, hopefully in the first go! We have a team of professionals in this field as we deal with such closure every other day and with years of experience. We are able to get this work done on your behalf in the stipulated time frame, while you have ease of mind and know what to expect, along with clarity. We keep you updated with the whole process and also the progress of the application from the start to the finish.
Frequently Asked Questions
A 'Limited Liability Partnership', i.e. LLP, is a partnership under which some or all the associates have limited liability.
When the LLP is inoperative from the date of incorporation or inactive for at least one year, and when LLP does not have any assets/liabilities as on the date of application.
In matters where the LLP wants to close down its business or where it is not carrying on any business operations for one year or more. The title of LLP can be struck off by the register or by the LLP in 'e-Form 24' with the consent of all partners.
E-Form 24 is used for producing an application to the Registrar of Companies for striking off the name of the LLP
The LLP must have a PAN
The LLP should be inactive for at least one year or non-operational from the time of incorporation
There shall be no live bank account at the time of application
The LLP should have filed the latest IT returns.
The designated partners have to sign the application along with the consent of all partners.
Minimum one year has crossed after incorporation of the LLP for making an application for striking off the name of the LLP.
If LLP started operation and closed in between, all returns shall be filed until the date of service of the LLP.
In case business is originated and stopped in between, LLP shall file all Income tax returns till the date of administration. LLPs did not begin service can file closure application without filing returns.
No, once closure request is filed no need to submit any returns