If an LLP has become inactive or dormant, it can be wound up to avoid annual compliance formalities and penalty for non-compliance.
Great Solution can help you liquidate your LLP in a quick and hassle-free manner.
If an LLP is not carrying on any business operations for the period of one year or more, closure of an LLP can be initiated voluntarily. Towards this end, the LLP must pass a resolution in favour of closure with the approval of at least three-fourths of the total number of Partners. In case there are secured or unsecured loans on LLP, the approval of the lenders is also a must for its winding up.
To begin the process for closure, a resolution must be passed declaring the LLP as defunct, and filed with the Registrar of Companies (RoC), requesting for removal of the name of the LLP from RoC register. The liquidation process shall be deemed to commence from the date of passing of resolution for winding up a company voluntarily and filing up eForm 24 for striking off the name of LLP under clause (b) of sub rule 1 of Rule 37 of LLP Rules 2008.
An LLP can also be dissolved with the approval of 3/4th of the Partners. For this, a greater part of the designated partners will have to make a declaration that the LLP has no debts or that it can pay all its debts in full within a period of not more than one year from the start of liquidation. Further, the Partners must undertake that the LLP is not being wound up with an intention to deceive any person or institution. This declaration must be accompanied by a statement of assets and liabilities until the most recent practicable date right before making the winding up resolution.
The process for winding up a LLP is no longer cumbersome; with the introduction of LLP Form 24, it has been made easy and simple. The Ministry of Corporate Affairs (MCA) has introduced the Limited Liability Partnership (Amendment) Rules, 2017 with effect from 20th May, 2017. This amendment makes it possible to easily close a LLP by applying to the RoC for striking off the name of LLP.
RoC has the power to strike off any defunct LLP after satisfying himself of the need to do so. In this case, the registrar has to send a notice to the LLP announcing his intention to do so and asking it to send their representation within one month from the date of the notice. As per the procedure, such notice or content of the application made by the LLP shall be published on the RoC website for a period of one month for the information of the general public. If the concerned LLP files no reply to the notice within the mentioned period, the RoC can, on its own, strike off the name of LLP.
An LLP can be shut down by a Tribunal due to the following reason/s:
We will help you close down your LLP if it is not active. This way, you will avoid compliance responsibilities that as a legal entity and a juristic person, you are required to maintain as long as you are into operation.
Winding up your inactive LLP will help you avoid fines and penalty that you will attract if you do not maintain procedural compliances on time. Legal liquidation will also prevent possible debarment of the Partners from starting another LLP or Company in the event of defaulting on compliances.
We will provide you with a relatively simple and easy to complete ways to wind up your dormant LLP. The MCA too has simplified the process for liquidation of an LLP. You will sail seamlessly through the entire process.
We will help you wind up your LLP at low costs. It will be far lower than the penalty that a non-compliant LLP could attract for failing to maintain mandatory filings every year.
The MCA has taken various initiatives to simplify the process for liquidation or winding up of LLP. We will let you close down your business without going through any complex procedural requirements.
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