Closure of LLP Online

LLP (Limited Liability Partnership) is one of the most popular legal entity in India due to its feature. LLP is a innovative form of  corporate business structure that gives the benefits of limited liability of a company and the flexibility of a partnership. it incorporates the benefits of both partnership firm and company into a single form of organization.. Even in the last some years it’s a 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.

Step 1: Cease Commercial Activity

LLP Form 24 can be filed only by LLPs that never commenced business or have ceased commercial activity. Hence, if the LLP is operational and the promoters wish to close the LLP, the LLP must first cease all commercial activity.

Step 2: Close Bank Account(s)

LLP Form 24 can be filed only by those LLP that have no creditors and no open bank account. Hence, prior to filing LLP Form 24, any bank account opened in the name of the LLP must be closed and a letter evidencing closure of the bank account in the name of the LLP must be obtained from the Bank.

Step 3: Prepare Affidavits & Declaration

All the Designated Partners of the LLP must first execute an affidavit, either jointly or severally, that the Limited Liability Partnership ceased to carry on commercial activity from (Date) or has not commenced business.Further, the LLP Partners must also declare that the LLP has no liabilities and indemnify any liability that may arise even after striking off its name from the Register. The liability of the Partners would not be extinguished even after closure of a LLP while using Form LLP 24.

Step 4: Prepare Documents

Along with Form LLP 24 the income tax return of the LLP and LLP deed must be enclosed. In case the LLP has not filed any income tax return and it has not carried on any business activity, then it is not required. Else, a copy of the acknowledgement of the latest Income-tax return filed must be attached with the application for closing the LLP.

Step 5: File Any Pending Documents

After incorporation of a LLP, the LLP agreement must be filed with the MCA within 30 days of registration. In case this compliance was missed and LLP agreement was not filed, then the initial LLP agreement, if entered into and not filed, along with any amendments must be filed.

Step 6: Obtain Chartered Accountant Certificate

Once all the documents for filing of LLP Form 24 is prepared, a statement of accounts disclosing NIL assets and NIL liabilities, that is certified by a Practising Chartered Accountant up to a date not earlier than thirty days of the date of filing of Form 24 must be obtained.

Step 7: File LLP Form 24 to MCA

The above mentioned documents along with LLP Form 24 can be then filed with the MCA to strike off name of LLP. On processing the application, if found acceptable, the concerned Registrar of Companies would cause a notice to be published on the MCA website announcing the striking off of the LLP.