Since an LLP is the creation of law, the LLP can be closed only through the procedures established by law. The reasons for the closure of an LLP could be many but the circumstance in which an LLP is being closed is what matters the procedures that need to be adopted for winding up an LLP.
Read more on the closing of LLP at https://vakilsearch.com/close-your-limited-liability-partnership
The closure can happen in the following ways:
- Closure of an inactive LLP
- Closure of an LLP having liability/debt
- Closure of an LLP by NCLT
The procedure for the closure of an LLP differs accordingly.
STEPWISE PROCEDURE FOR CLOSURE OF LLP IN INDIA
- If there’s a bank account, it needs to be closed before the procedure of closing the LLP starts.
- Statement of the assets and liabilities needs to prepare and signed by the partners, which then needs to be certified by the auditors of LLP and if the LLP didn’t appoint an auditor, then any chartered accountant in practice can certify the same.
- The next step is that the partners need to meet and decide on the closure of the LLP and this must be made according to the LLP agreement.
- An affidavit to the truthfulness of information and document shall be filed with the ROC.
- DSC is equivalent of physical or paper certificates in digital format. As the application for 'LLP closure' is filed online with Digital Signatures of at least one designated partner. To obtain a class-2 digital signature for the partner a Photo, copy of ID and Address proof duly attested by the gazetted officer is to be submitted along with Form.
- And lastly, an application for the closure of LLP is to be filed with necessary documents duly signed and attested by the designated partner and a practicing CA or a company secretary. The ROC, if satisfied with the application, shall close the company within a period of 90-120 days.
To file form for the closure of LLP contact or visit https://vakilsearch.com
