Closure of LLP

What is Closure of LLP?

LLP that has been non-operational since its incorporation or has ceased business operations for a period of one year or more has the option to apply with the Registrar of Companies (ROC) for striking off its name. Closure of an LLP can occur for various reasons, ranging from voluntary winding up to compulsory winding up.

The Ministry of Corporate Affairs introduced LLP Form 24 as part of an amendment to the Limited Liability Partnership Rules, 2009. However, applying for the closure of an LLP is subject to specific criteria.

Before proceeding with the LLP’s strike-off, certain pre-requirements must be met. All outstanding liabilities of the LLP must be settled, and its bank accounts must be closed. Additionally, it is essential to ensure that all due Returns in Form 8 and Form 11 up to the end of the financial year in which the limited liability partnership ceased business operations have been filed. Furthermore, the latest income tax return should be filed before initiating the closure process of the LLP.

Requirements

The LLP has been non-operational since its incorporation or for a continuous period of one year or more.
Overdue returns in Form 8 and Form 11 have been filed up to the end of the financial year in which the limited liability partnership ceased its business activities.

1. The LLP has not opened any bank account, and if it had one in the past, the said bank account has been closed, along with a certificate confirming the closure.
2. There are no outstanding liabilities or payments due to any creditors.
3. The income tax return for the last financial year has been duly filed.
4. The application includes PAN card copies of all the partners and designated partners.
5. Aadhar card copies of all the partners and designated partners are provided.
6. If available, a copy of the LLP Agreement or the date of becoming a partner is also furnished.
7. Full addresses of all the partners and designated partners are provided.

Process For Closure of LLP

1. Arranging the Documents:
   Arrange to provide the documents as per the checklist shared.
2. Bank Closure:
   Close the bank account if available and arrange to provide closure certificate.
3. Documentation:
   Get NIL statement of accounts from Chartered Accountant and prepare documents as required to be attached for filing.
4. Filing of Form:
   Filing of LLP Form 24 within 30 days from the date for which the NIL statement is provided by the Chartered Accountant.