Closing a Limited Liability Partnership Company

An LLP or Limited Liability Partnership is needed to file certain mandatory annual returns whether the business operates or not. If the firm fails to file the due returns, then the LLP will be subjected to penalties and prosecution as per the LLP Act and the designated directors or partners of the LLP are liable to face the same penalties and prosecution. Stopping of business operations cannot be a reason for not filing the annual returns; an LLP continues in existence until its formal closure process is done. An LLP or Limited Liability Partnership being a separate legal company or business registered as per the law, it is mandatory to be closed in a formal way as specified in the LLP Act.

An LLP or Limited Liability Partnership fulfilling the following factors can file an application for closing or striking off its registered firm name from the Register of LLP.

LLP should be not working from the date of incorporation or registering or inactive for a time period of one year at least

LLP should not own any assets or properties or liabilities as on date of application.

The application for closing or striking off the firm name should be filed along with the specified fee payment, consent of all partners of the firm, affidavits and indemnity by all designated directors or partners, copy of the latest income tax return and the latest statement of bank accounts of the firm from the date of application attested by a Chartered Accountant.

A defunct Limited Liability Partnership or LLP can make a closure application to the Registrar with the acceptance from all partners of the firm and to strike out its name from the register.

A defunct Limited Liability Partnership or LLP refers to a firm or LLP which has never started its business operations or not carried any business activities for the immediate past one year and the firm has no assets, properties and liabilities.