Close a Limited Liability Partnership
Before the introduction of the Limited Liability Partnership (Amendment) Rules, 2017, the procedure for winding up a LLP used to be long and cumbersome. However, with the introduction of LLP Form 24, the procedure has been made easy and simple. Hence, its best for Entrepreneurs having dormant or defaulting LLPs that are accruing penalty to use this opportunity to close the LLP. In case the LLP wants to close down its business or where it is not carrying on any business operations for the period of one year or more, it can make an application to the Registrar for declaring the LLP as defunct and removing the name of the LLP from its register of LLP’s. An LLP need to be closed down/ LLP strike off can be done on the following conditions:
- LLP is inoperative from the date of incorporation or inactive for a period of at least one year
- LLP does not have any assets / liabilities as on the date of application.
- Closure of current account of the LLP has been done
- LLP Obtain the consent of the parties i.e any other authority, creditors and partners.