CLOSE YOUR LLP

ABOUT CLOSE YOUR LLP

An LLP that has not carried out any commercial activity since its inception or ceased business for a period of one year or more may request the ROC to remove the name of the LLP. There can be a number of reasons for closing an LLP, which can range from voluntary liquidation to forced liquidation.The Department of Corporate Affairs introduced LLP form 24 through an amendment to the Limited Liability Partnership Rules, 2009. However, an application to close an LLP is subject to certain criteria.As a major prerequisite, prior to removal from the LLP, all  outstanding debts from the LLP must be paid  and all  bank accounts of the LLP must be closed to ensure that all profits due on Forms 8 and  11 through the end of the fiscal year in which the limited liability company ceased to do business in which the application was filed. Additionally, a final tax return must be filed prior to filing an LLP claim. If you are ready to close the LLP, then the LLP must meet the following conditions:LLP must have been inactive for a period of at least 1 year or inactive from the date of creation. The second condition is that the LLP must not have any assets on the claim date. In addition, detailed documents must be completed. The first thing  you need to do is  submit an application  with the required fee and affidavit along with the consent of all LLP partners. In addition, to close the  LLP, you must submit an IT report and account statement (within the last 30 days) from the date of request. At this point, you must know that the closure of LLP can take up to two months, provided the partners are quick to complete the procedures involved.

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