There can be many reason for a person to either wind up or close their LLP. It is wise to close LLP if the business if not being carried as planned just because if the business does not continue and any default is made in making the compliances like filing any returns there is heavy penalty for default. The penalty for default is Rs.100 per day without any maximum limit. Therefore it is best to close down dormant LLP or LLP which is not carrying on business rather than going through NIL filings or facing penalty for noncompliance in filing.

Procedure to Get Limited Liability Partnership Struck-Off From Register Of Companies

1 CESSATION OF ACTIVITES

Before making an application for striking-off, the LLP must ensure to cease all commercial activities end make sure no debts to creditors are subsisting and all bank accounts in the name of the LLP must be closed.

2 BOARD MEETING

Convene and hold a meeting of partners and obtain consent from all partners for making an application for striking-off the name of LLP. Subsequently secure consent from all the creditors of the LLP, if any.

3 FILING

The application for having the name of the LLP struck-off shall be made in FORM 24, along with the required documents, with the Registrar of Companies.

4 PUBLICATION OF NOTICE

The ROC after accepting application for strike-off, shall publish a notice on the MCA website for a period of 30 days, detailing the contents of the application which shall provide information to stakeholders.

5 DISCHARGE LIABILITIES

The ROC before passing an order for strike-off shall, ensure itself that sufficient provisions have been made for realisation of amount due to LLP and for the payment or discharge of its liabilities and obligations by the LLP within a reasonable time and obtain undertaking from the Designated partners for such obligations.

6 NOTICE OF DISSOLUTION

The ROC after expiry of the notice period of 30 days and being satisfied that the case in order, shall strike-off the name of the LLP from the register and shall publish a notice of such strike-off in the Official Gazette and the applicant LLP under this scheme shall stand dissolved from the date of publication of the notice of strike-off in the Official Gazette.

Documents required under Form 24

• A Statement of Account disclosing nil assets and nil liabilities, certified by a Chartered Accountant in practice made up to a date not earlier than 30 days of the date of filing of Form 24.
• An affidavit individually by the designated partner.
• A copy of the acknowledgement of the latest Income-tax return filed where the LLP has carried out any business and has filed such return.
• Copy of the initial LLP agreement, if entered into and not filed, along with changes thereof in cases where the LLP has not commenced business or commercial operations since its incorporation.
• Consent by each partner to make the application
• Indemnity Bond- jointly or severally by Designated Partners
• Authority Letter signed by each designated partner
• Address and ID proofs of the Designated Partners.