Closing LLP

Rs. 5,999/-* Onwards


LLP (Limited Liability Partnership) is one of the most popular legal entity in India nowadays due to its features and cost benefits. In simple words, it is a mixture of the partnership firm and private limited company. Even in the few years, it’s one of the most popular legal entity over the partnership firm. But sometimes there are of the reason faced by the Indian entrepreneur so they want to close the LLP.

Reason to Close the LLP (Limited Liability Partnership) in India:on

Some Startups just started with the idea but after the testing their ideas there is no profitability so they want to close the LLP.

There is no business activity for a long time.

Partners are not willing to continue the business or partnership.

If the LLP is registered for any specified project and it has been completed.

LLP has become bankrupt.

Only one partner is remained after the death of the partner and wants to close the business.

By the Court order due to any circumstances.

So above are the main reasons for the Closure of an LLP in India. If any entrepreneur is facing these above issues after the registration then they prefer to close or winding-up LLP so at least they do not afford the legal penalties or compliance every year. Else they have to bear the huge professional fee for the maintenance through the chartered accountants or company secretary so the suggestion is always to close an LLP if you face above any kind of the reason

FAQs

A person may cease to be a partner in accordance with the agreement or in the absence of agreement, by giving 30 days notice to the other partners. Notice is required to be given to ROC when a person becomes or ceases to be partner or for any change in partners.

An LLP shall be under obligation to maintain annual accounts reflecting true and fair view of the state of affairs. The Statement of Account & Solvency in Form-8, complusorily signed by the designated partners, is to be filed within 30days from the six months from the closure of the respective financial year i.e. by 30th October. If there is any delay filing of Form 8 then the penalty would be Rs. 100/- after the above specified period.

As per Chapter XXI of Companies Act 2013 i.e. Section 366 states the provisions of Companies capable of being registered. Section 366 (1) states that LLP may be registered as Company with certain conditions specific to LLP. Section 366 (2) shall contain seven or more members and Section 366 (2)(ii) says cannot be converted into Limited by Guarantee and Unlimited Company i.e. can be converted into Companies Limited by shares only