Closing an LLP
If the entity does not engage in any sort of activities for an entire preceding year, an LLP can be terminated, With the mutual consent of all the partners, a closure application needs to be filed to terminate the LLP. Eazy Startup can help you in filing of the Termination From.
The designated partners should file a resolution with the Registrar of Companies within 30 days of its passing. Submission of statements of assets and liabilities after closing the accounts to the date of winding up should be done by at least two partners, attested by them succeeding to the passing of resolution. Reports related to valuation of company assets should be prepared.
If you choose to register your company as an LLP, you are required to file returns mandatorily whether the business has been operating or not. LLP will be subjected to penalties under the LLP Act, if it fails to file the returns under any circumstances and the partners will be liable for the consequences. Therefore, filing returns is constituted as a mandatory act in the case of LLP.
Form 24 LLP to filed
Along with the declaration from the partners, Form 24 will be filed with the Registrar of Companies. Additionally. You are required to submit a confirmation stating that the information is true to knowledge of all the partners and indemnity bonds for the closing of the LLP.
Public Notice to be given
A notice stating the contents of the application for a time span of one month will be published on its website by the Registrar of Companies.
Removal of LLPs Name
The LLPs name will be removed by Registrar of Companies after one month and also a notice gets published in the Official Gazette, subsequently, legally dissolving the LLP.
Q: Is it mandatory to appoint a liquidator?
A: Yes, it is mandatory to appoint a liquidator, as it is the responsibility of a liquidator to carry out the process of winding up of LLP.
Q: Is creditors consent required for winding up of the LLP?
A: Yes, the approval of creditors whether secured or unsecured is needed to go for closure. Creditors should give their opinion on closure within 30 days from the date of resolution sent for approval.
Q: In case of closure of defunct LLP, who should sign the application?
A: All the designated partners should sign the application along with other partners for the closure of defunct LLP.
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