How to close LLP: Procedure for winding up of LLP

Procedure for winding up of LLP:  A Limited Liability Partnership can be closed down by declaring the LLP as defunct. Declaring the LLP as Defunct: In case the LLP wants to close down its business or where it is not carrying on any business operations for the period of one year or more, it can make an application to the Registrar for declaring the LLP as defunct and removing the name of the LLP from its register of LLP’s. [caption id="attachment_391" align="alignnone" width="600"] How to Close LLP: Procedure for winding up of LLP[/caption] Procedure: File E-Form 24 with the RoC along with the following documents:

• Copy of detailed application. There is a prescribed format of detailed application in MCA which needs to be submitted.
• Copy of authority to make the application.
• Copy of consent of all the partners
• Copy of consent of all the creditors
• Copy of affidavit for each of the designated partners
• Copy of the undertaking/ indemnity bond for striking off name (Please refer the note below)
• Statement of assets and liabilities duly certified as true and correct by auditor/chartered accountant in practice
• Copy of acknowledgement of latest Income tax return
• Attested (by CA) copies of PAN and address proof of all designated partners/partners
• A paragraph of reason for which the LLP is proposed to be shut down

Once all the documents are executed, the same are filed with the Registrar in e-form 24. The Registrar will keep the application open for a period of one month to check if there are any objections and once it is satisfied, an order will be issued to strike off the name of the LLP from its records and complete the process. Although this process does take some time, it is one of the most convenient ways to close a LLP, which has not undertaken any business during the last one year.