Close Your LLP

What is LLP Closure?

An LLP can be closed in following two ways:-

1. LLP declared defunct

In case any LLP wants to close down its business or has not started any business since incorporation or more than one year, an application in this regard can be made to the Registrar to declare the LLP as defunct and removal of its name from LLP's Register.

For stiking off the name of the LLP it needs to file eform 24 . Further the Registrar can also strike off the name of the LLP if it has reasonable cause to do so. The registrar in this case will send a notice to the company about its intension of striking off the name of the LLP and will give one month time for making the representations to the LLP. For the information of the general public the Registrar will also publish notice and representation made by LLP on its website for one months period. If the LLP makes no representation in resonse to the notice issued, registrar may strike off its name.

2. Winding up of the LLP

Any LLP can be wound up in two ways;-

(a) Voluntary winding up ; - Under Voluntary winding up, the partners of the LLP on mutual consent can agree to close down the operations and wind up the LLP.

(b) Compulsary winding up; - The Tribunal can pass an order for compulsory winding up of an LLP in following cases;

• i. If the partners decides for winding up of the LLP by the tribunal.
• ii. If the number of partners in an LLP are reduced below two for a period of more than six months.
• iii. If the LLP has done something against the Law, Security of the state, intigrity of India or public order.
• iv. If the LLP has made default in filing statement of account and solvency or annual return with the registrar for any five consecutive financial years.
• v. If the tribunal finds it justifiable and equitable to wind up the LLP.