What is the Procedure of closing a LLP?

Are You Thinking Of Closing Your LLP?In case your LLP is not carrying any business operations for a period of one year or more or if you want to close down its business, then an application can be made to the Registrar declaring the LLP as defunct and removing the name of the LLP from its register of LLP’s.

E-Form 24 is required to be filed for striking off the name of LLP under clause (b) of sub rule 1 of Rule 37 of LLP Rules 2008 along with attachments of the following:

  • Copy of detailed application – There is a prescribed format of detailed application in MCA which needs to be filled up by the designated partners at the appropriate place.
  • Copy of authority to make the application
  • Copy of consent of all the partners
  • Copy of consent of all the creditors
  • Copy of affidavit (Please refer the note below)
  • 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

Note: Copy of affidavit and indemnity bond is to be prepared separately for each partner/designated partner. There are separate standard formats for the same. It should be printed and filled on a stamp paper. After filling the details, it has to be executed via a local Magistrate in the local court. An oath is taken to indemnify that even after closure of the LLP the partners/designated partners would be jointly and severally liable.

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