Closure of LLP

Introduction

LLP Closure with CorpIQ's Fast Track Exit Services

Finalizing the affairs of a Limited Liability Partnership (LLP) requires careful handling to ensure compliance and protect the interests of partners. CorpIQ's Fast Track Exit services for LLPs offer a structured and prompt closure process, designed to meet the regulatory demands and provide a clean and clear termination of the LLP's existence.

FAST TRACK EXIT SERVICES FOR LLP CLOSURE

- Expert Guidance: Navigate the Fast Track Exit process with CorpIQ's seasoned professionals, who will guide you through the regulatory landscape and closure formalities specific to LLPs.

- Meticulous Documentation: We assist in the preparation and compilation of all necessary documents, including affidavits, indemnity bonds, and the requisite declarations for closure.

- Compliance Review: Our thorough due diligence ensures all statutory liabilities are addressed, and any pending compliances are fulfilled to avoid any obstacles in the closure process.

- Filing of Closure Forms: CorpIQ manages the accurate completion and submission of Form 24 with the Ministry of Corporate Affairs (MCA), which is essential for the Fast Track Exit of an LLP.

- Liaison with Authorities: Our team communicates directly with the MCA to handle any queries or clarifications, ensuring that the process moves forward without unnecessary delays.

- Confirmation of Closure: We monitor the process up to the final deregistration of the LLP and provide you with the confirmation of closure, thus concluding your obligations towards the LLP.

Efficient and Compliant LLP Wind-Up

Closing an LLP is a critical task that can have lasting implications if not executed correctly. With CorpIQ, you are choosing a partner who understands the significance of a proper closure procedure and is committed to delivering it with expertise and ease. Contact CorpIQ today for a strategic approach to your LLP's Fast Track Exit. Our precision-driven service is here to facilitate a clean and compliant dissolution, so you can confidently close one chapter and move on to the next.

LEGAL SIDE OF FAST TRACK LLP CLOSURE

Limited Liability Partnerships in India are regulated by the Limited Liability Partnership Act, 2008. The Limited Liability Partnership Act 2008 was published on January 09, 2009 in the official Gazette of India and came into effect on March 31, 2009. As the cost of formation of an LLP is less than private or public companies, it attracts new entrepreneurs and there is no requirement of minimum capital contribution and “Limited Liability Partnership” means a partnership formed and registered under the Limited Liability Partnership Act, 2008.

FEATURES OF LLP

• LLP is a corporate body having separate legal entity and perpetual succession.
• It is registered under the Limited Liability Partnership Act, 2008.
• It is regulated by the Ministry of Corporate Affairs.
• Liability of partners is limited except in case of fraud.
• It is applicable to any trade or business.

 

Legal Framework dealing with the provision of Closure or Striking of an LLP

As pursuant to section 75 of the Limited Liability Partnership Act, 2008 read with Rule 37 of the Limited Liability Partnership Rules, 2009 deals with the provision for striking off the name of the Limited Liability Partnership from the Register of limited liability partnerships.

LLP Form 24 has been introduced by the MCA to allow easy closure of a LLP by making an application to the ROC for striking off the name of LLP.

If any existing LLP which is not carrying on any business or operation for a period of one year or more, it can make an application in Form 24 to the ROC, with the consent of all partners of the limited liability partnership for striking off its name from the register and where the Registrar has reasonable cause to believe that a limited liability partnership is not carrying on business, in accordance with the provisions of this Act for a period of two years or more, the name of limited liability partnership may be struck off from the register of limited liability partnerships by ROC by taking suo moto action for struck off the name of the LLP. However, before striking off the name of the LLP by the ROC, the ROC shall give reasonable opportunity of being heard to the limited liability partnership and all its partners.

Striking off by way of filing an application by the LLP:-

As pursuant to the provision of section 75 of the Limited Liability Partnership Act, 2008 read with Rule 37 of the Limited Liability Partnership Rules, 2009, where a limited liability partnership is not carrying on any business or operation for a period of one year or more, such a LLP can file an application suo motu for striking off the name of the LLP.

• Holding the meeting of the partners for authorizing and making an application for the striking off of the name of the LLP with the Registrar.

• The consent of all partners of the Limited liability partnership should be obtained before making an application to the Registrar for striking off of the name of the LLP.

• All the pending filing including the Annual Filing of form 8 and 11 up to the end of the financial year in which the limited liability partnership ceased to carry on its business should be completed before making an application.

• Approval of concerned authorities should be obtained in case of a LLP regulated by any Special Law.

• All the Designated Partners of the LLP must execute an affidavit, either jointly or severally, that the Limited Liability Partnership ceased to carry on commercial activity from (Date) or has not commenced business and also declare that the LLP has no liabilities and indemnify any liability that may arise even after striking off its name from the Register.

• An application for striking of the name of the LLP shall be made in Form 24 with following attachments:

• Copy of acknowledgement of latest Income tax return- Self Explanatory
• Copy of the initial limited liability partnership agreement
• A statement of accounts disclosing nil assets and nil liabilities.

(d) An affidavit signed by the designated partners.

(e) Copy of the detailed Application- Mention full details of LLP plus reasons for closure

(f) Copy of Authority to Make the Application which should be duly signed by all

the Partners

• Notice shall be placed on the website of the Ministry of Corporate Affairs for the information of the general public for the period of one month.

• After the expiry of the time limit of one month and unless cause to the contrary is shown by the LLP, if there are no objections received, the Registrar can proceed for striking the name of the LLP from the Register.

• The Registrar before passing an order for striking off of the name of the LLP should satisfy that the sufficient provision has been made for the realization of all amount due to the limited liability partnership and for the payment of its liabilities and obligations by the limited liability partnership within a due course of time.

• After the expiry of the time specified in the notice, the Registrar can proceed for strike off the name of the LLP from the Register. The notice of striking off the name of LLP from the register should be published in the Official Gazette.

• On processing the application, if found acceptable, the concerned Registrar will strike off the name of the LLP from the Register.

 

DOCUMENTS REQUIRED FOR CLOSURE OF LLP

The following list of documents are required for cle of LLP:

• Copy of detailed application for closure of Limited Liability Partnership (LLP);
• copy of the initial limited liability partnership agreement;
• Consent of all the partners;
• copy of the latest Income tax return;
• a statement of accounts disclosing nil assets and liabilities respectively;

an affidavit signed by the designated partners, either jointly or severally;