chheda.net.in


What's New Login We feel happy to talk +91 9969549777


	Home About Us Services CSR & Charity Packages Knowledge Bank Calculators GST Calculator Tax Calculator TDS Calculator Calculate Net Profit Calculate Net Worth Effective Capital HRA NSC EMI Auto Loan Calculator Home Loan Calculator Get No. Of Installment RERA Calculator Developers Calculator Home Buyer Delay Interest Home Buyer Refund Bulletins RBI SEBI Notification Circular Income Tax Service Tax Central Sales Tax Excise Matters Customs Company Law Labour Laws FEMA The LLP Act 2008 Accounting Standard (INDAS) Others GST VAT Delhi VAT Maharastra VAT Gujarat VAT Telangana VAT Tamil Nadu VAT IGST UTGST Compensation Cess IBC Regulation Utilities Rates of TDS TDS Rates for N.R.I us 195 Rates of Income Tax Depreciation Rates Companies Act Depreciation Rates Income Tax Act ROC Filing Fees (Cos Act, 2013) ROC Fee Structure (Cos Act, 2013) Cost Inflation Index IFSC Codes MICR Codes Rates of NSC Interest Gold and Silver Rates Rates of Stamp Duty LLP Fees National Industries Classification HSN Rate List Deduction u/s 80TTA Vs 80TTB Links Quick Links Important Links GST/VAT Links Ease Of Doing Business Acts Direct Tax Income Tax Act Wealth Tax Act Income Declaration Scheme 2016 Indirect Tax Service Tax(Finance Act, 1994) Central Sales Tax Act, 1956 The Central Excise Act, 1944 Customs Act, 1962 Entry Tax Act Corporate Laws Companies Act, 2013 Companies Act, 1956 LLP ACT SEBI Act, 1992 Company Secretaries Act, 1980 VAT Laws Delhi Value Added Tax Act, 2004 MVAT Act, 2002 West Bengal VAT Act, 2003 Tamilnadu VAT ACT, 2006 Karnataka Value Added Tax Act, 2003 Gujarat Value Added Tax Act, 2003 UP VAT Act, 2008 Rajasthan Value Added Tax Act, 2003 Punjab Value Added Tax Act Haryana Value Added Tax Act Telangana VAT Act 2005 Andhra Pradesh VAT Act, 2005 Bihar Value Added Tax Act, 2005 Other Statutes ESI Act, 1948 PF Act, 1952 Profession Tax Act The Indian Partnership Act, 1932 Societies Registration Act, 1860 Competition Act, 2002 Reserve Bank of India Act, 1934 MRTP Act, 1969 Equalisation Levy Act, 2016 Right To Information Act, 2005 FEMA, 1999 Maharashtra RERA RERA, 2016 Insolvency & Bankruptcy Code, 2016 Benami Property Act 1988 GST Laws IGST Act , 2017 CGST Tax Act, 2017 UTGST Act, 2017 GST (Compensation to States) Act Rules Direct Tax Rules Income Tax Rules Wealth Tax Rules 1957 Income Declaration Scheme Rules 2016 Indirect Tax Rules GST Valuation Rules , 2016 Service Tax Rules CST (Delhi) Rules, 2005 CST (Maharashtra) Rules Customs Valuation Rules Cenvat Credit Rules, 2017 Entry Tax Rules Corporate Laws Rules Companies Rules, 2014 LLP Rules, 2009 LLP Winding up Rules, 2012 Cos Unpaid Dividend Rules, 1978 VAT Laws Rules Delhi VAT Rules, 2005 Maharashtra VAT Rules, 2005 West Bengal VAT Rules, 2005 Tamilnadu VAT Rules, 2007 Karnataka VAT Rules, 2005 Gujarat VAT Rules, 2006 Uttar Pradesh VAT Rules, 2008 Rajasthan VAT Rules, 2006 Punjab VAT Rules Haryana VAT Rules, 2003 Telangana VAT Rules 2005 Andhra Pradesh VAT Rules, 2005 Bihar Value Added Tax Rules, 2005 Other Statutes Profession Tax Rules NBFC Deposits Directions, 1998 NBFC & Misc NBC (Advt) Rules, 1977 NBFC Auditor Report Directions, 2008 Delhi Labour Welfare Fund Rules, 1997 Cost records and audit Rules, 2014 Baggage Rules, 2016 Equalisation Levy Rules, 2016 NCLT And NCLAT Rules Insolvency & Bankruptcy Rules Benami Property Rules, 2016 GST Rules CGST Rules, 2017 IGST Rules 2017 Forms Income Tax Forms ROC Forms (Cos Act, 2013) ROC Forms (Cos Act, 1956) Income Declaration Forms Wealth Tax Forms Service Tax Forms Companies Unpaid Dividend Forms NBFCs Forms LLP Winding up FEMA Forms LLP Forms CGST Forms GST Forms Accounts and Records Advance Ruling Appeals and Revision Assessment and Audit Composition Demands and Recovery Input Tax Credit Inspection, Search and Seizure Offences and Penalties Payment of Tax Refund Registration Returns Transitional Provisions Value of Supply News Query Careers Admin Login Email Login Time Sheet Contact Us

|| Close LLP ||

Process to Close LLP

Voluntary Strike Off

To opt for Strike Off method of closure, LLPs must meet the following grounds of eligibility:

Not been in commercial operation for at least one year. To apply for voluntary strike off status, the LLP must file an application in Form 24 LLP and submit the same to the Registrar of LLPs.
The LLP must have made all the compliance till the date of filing for closure. However, it needs to file annual returns only until the end of the year it stopped commercial operation It must have obtained the consent of all the parties involved. Members, creditors and any or all regulatory authorities. (The domain of which the LLP lies under)
The LLP must not have any assets or liabilities on the date of preparation of financial statements.

Documents Required for the voluntary closure of LLP

Statement of Accounts - Prepared less than 30 days from date of application. It must be certified by a practicing CA.
Copy of latest Income Tax return
Certificate of bank account closure
Copy of LLP's resolution
Affidavit by which the members claim the LLP has no creditors or Liability
Indemnity Bond
Affidavit by the designated partners
Copy of detailed application
Copy of the initial limited liability partnership agreement

Compulsory closure of a Defunct LLP through Strike Off method-

The Registrar of LLPs has the power to bring about the closure of any LLP. The former can strike off a defunct LLP: if it has not carried out any business for a period of 2 years and he has enough reason to do so.

Process of closure through Compulsory Strike Off method

The Registrar will notify the members of the LLP of the same.
They will be given the opportunity to state their side of the argument.
If the LLP fails to get back to the Registrar within the stipulated time the process will be carried on.
He shall then publish the notice of the LLP's closure on its website for a period of one month.
Receiving no objections, the name will be struck off.
A notice will be published in the Official Gazette regarding the same and the LLP shall stand dissolved from the date of the notice.

Voluntary winding up

When the members of an LLP want to bring about its closure, it is known as voluntary winding up.

To initiate the closure through this method:

The LLP needs to pass a resolution. At least three fourths of the total partners must consent to it.
A replica of the resolution passes shall be filed with the Registrar. It must be done through Form 1 within 30 days of the resolutionâ€™s passing.
It should also file Form 2 which states that they do not have any debts or the debts that they do have will be made good within one year from the date of the passing of the resolution.
Within 14 days of the resolutionâ€™s passing, the LLP must advertise in a newspaper the details of its closing.
It should then appoint a liquidator for the purpose of liquidation of the assets and settlement of the liabilities.

Note: the creditors have the option to appoint a liquidator. If there isn't any liquidator appointed by both the LLP and the creditors then the Tribunal shall appoint a liquidator.

Another resolution should be passed which approves the report filed by the liquidator.
The latter shall file this report through Form 9.
The partners and the creditors of the LLP will then approve to closure.

Compulsory Winding up

The Tribunal or the Registrar can initiate the closure of an LLP. Above in the article, we discussed how the Registrar initiates the closure of a defunct LLP through Strike Off method. Here, we discuss the grounds on which the Registrar or the Tribunal closes a functioning LLP. Note that the LLP is not struck off rather it is wound up and liquidated. This is different from Strike Off method as it is much simpler.

Grounds of Compulsory LLP Winding up-

If the LLP decides to be wound up by the Tribunal
Has only one member for more than 6 months
Inability to pay debts
If it acted against the State's or the Nation's interests
Defaulted in filing the Statement of
In case the Tribunal sees it fit to wind up the LLP

The closure of business is the last resort. Though the closure of LLP is simpler than the closure of companies, only after considering every alternative should the members initiate the process to close LLP. If the members are willing to cease operations for a while or take a hiatus, it is better to obtain defunct status than file for closure. However, if the decision is certain then the members can avail the services of Chheda & Associates.

We help streamline the process of closure for our users. Reach out to us for any help on info@chheda.net.in

Disclaimer:- The materials provided herein are solely for information purposes and shall not be treated as solicitation in any manner and for any other purpose whatsoever. It shall not be used as legal opinion and not to be used for rendering any professional advice. The material s written on the basis of the provision applicable as on date of writing of this article.