CLOSING LLP




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CLOSURE OF LLP

Definition Procedure Documents FAQs


CLOSURE OF LLP


An LLP may decide to wind up its business by two modes, either by voluntarily winding up or compulsory winding up.
In voluntary winding up partners may decide between themselves to wind up the operations of the business.

In compulsory winding up an LLP may be compulsorily wound up by the order of the tribunal. To begin the process for winding up of LLP, a resolution for winding up of LLP must be passed and filed with the Registrar within 30 days of passing of the resolution. There are certain circumstances for the LLP compulsory winding up. Eg. when LLP is unable to pay off its debts, where the number of partners of the limited liability partnership is reduced below two and it continues for the period of more than six months.





Procedure for Winding Up of LLP




1

Document Preparation

2

Document Submission

3

Winding Up Process













A Business Expert reviews the activities of the LLP and determines the documents required for commencing LLP winding up.




Documents required for closing of LLP






Application for Striking off of the LLP.


Partners Meeting Resolution for closure.


Consent of Partners


Partners' Affidavit


Indemnity Bond


Statement of Assets and Liabilities.





Frequently Asked Questions





Why ROC filing is required for Closing an LLP?
It is necessary to file Closure with the ROC as ROC or MCA data base need to be updated and the LLP is free from all its legal compliances as it is officially closed. Even though business of the company is closed, unless closure documents are filed and approved by the ROC, company is not legally closed and the LLP needs to file all the regular returns.

What is time limit to file Closure documents with ROC?
The Form has to filled with ROC office within 30 days from the date of Signing of the Statement of Assets and Liabilities.







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