While There Is Nothing to Do in An Existing Business or There Is No Chance of Any Profit in LLP So Why Take A Burden of Heavy Costly Compliance Formalities and Penalties for Non-Compliance. You Can Choose to Close Your Dormant LLP or Inactive LLP by The Process of Winding Up or Striking Off by Making an Application to Registrar of Companies Under Whose Jurisdiction Your LLP Is Registered. The process of Winding up of a LLP of selling all the assets of a business for which LLP started by the partners , paying off creditors, distributing any remaining assets to the partners and then ending the business of LLP . The Process of Winding Up Is Nothing It Is Just Some Steps by Which LLP Is Put to End Its Corporate Existence in The Eye of Law and After That It Is Dissolved Totally.
A Number of Annual Compliance and Day to Day Compliance Is Mandatory for A LIMITED LIABILITY PARTNERSHIP to Comply for Surviving in The Business World Like Annual Filing, Income Tax Return, Auditor Appointment, Maintaining Various Registers or Records, GST Returns, Designated Partners KYC And Many More with Their Due Dates and Heavy Fees it includes approval from Tribunals and involvement of Liquidators. Section 63, 64 and 65 of LLP Act 2008 governs the process for winding up of the LLP . And in Case Any Limited Liability Partnership Is Failed in Complying these Compliance then the Result Is Heavy Penalties, Fines, Disqualification of Designated Partner of The LLP , And Even Removing the Name of The LLP from The Register of Registrar of Companies.
REASONS FOR WINDING UP:
Big Loss in A LLP Business.
Stakeholder Decision to Close LLP
Shortage of Fund
Death of Designated Partners.
Creditors Decision in Case of Bankruptcy.
Dispute between Partners.
When It Is Mutually Decided Between Internal Management Of The Partnership And Their Stakeholders That It Is Necessary Now To Close This Business, But There Is Need To Firstly Settle All The Dues And Comply All The Compliance’s In Regard Of LLP Then You Can Process The Winding Up Process, And Also You Have To Surrender All The Legal Certificates Of The LLP Which Is Issued By Various Department In The Name Of LLP.
Types of Winding Up : –
Compulsory Winding Up: – When Any Order Has Been Passed by The Court to Give Directions to Wound-Up LLP.
Voluntary Winding Up: – There Are Many Situations in Which It Is Decided by The Designated Partners of The LLP to Wound Up LLP Voluntary: –
When LLP Is Incorporated for Only Specific Project, So After That Designated Partners Take Decision to Wound Up LLP?
When Any Specific Event Is Occurred, Which Is Mentioned Is Already Mentioned in LLP AGREEMENT of LLP That on That Specific Event It Is Required to Wound Up LLP Voluntary.