What is the legal process to close an LLP?

Arin

What is the legal process for closing a Limited Liability Partnership (LLP), and what are the documents, procedures, and legal requirements involved in officially winding up and dissolving an LLP in accordance with the applicable laws and regulations?

Yash

The legal process for closing a Limited Liability Partnership (LLP) in India depends on whether the LLP has outstanding liabilities or has become inactive. The closure must be carried out in accordance with the Limited Liability Partnership Act, 2008 and the applicable rules.

Key points:

Settle all liabilities: Before applying for closure, the LLP should clear all outstanding debts, statutory dues, taxes, and obligations to creditors.
Obtain partners' approval: The partners must pass a resolution approving the closure of the LLP and authorize the filing of the necessary documents.
Close business operations: The LLP should stop carrying on business, close its bank accounts, and ensure that no legal proceedings are pending, if possible.
Prepare required documents: The LLP may need to submit documents such as:
- Statement of accounts showing nil assets and liabilities (where applicable)
- Affidavits and indemnity from partners
- Consent of creditors, if required
- Income tax return acknowledgements and other statutory documents
File an application with the Registrar: An application for striking off the LLP's name can be filed with the Registrar of Companies (ROC) in the prescribed form along with the required documents and fees.
Verification by authorities: The Registrar will examine the application and, if satisfied that all legal requirements have been met, may strike the LLP's name off the register and publish the closure in the Official Gazette.