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CLOSURE OF LLP
The main purpose of carrying out business is to earn profits. However, due to some inadvertent circumstances, an LLP may run into losses or may be due to due to the order of the Tribunal, an LLP may need to shut down its operations. Following are some of the common reasons for winding up the Company:
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- Where it is not carrying on any business operations for the period of one year or more;
- Where the owner voluntarily wants to close the LLP;
- As per the Orders of the Tribunal;
- Its inability to pay the debts.
An LLP shall be wound up as per the Winding Up and Dissolution Rules 2012, issued in this regard.
Advantages:
- To save itself from further losses;
- Saving itself from further action for not complying with the orders of the Tribunal;
- To save itself from further costs associated with complying with the provisions of LLP Act and other regulatory provisions;
Procedure:
Obtaining documents from Clients
Drafting an application to be filed with registrar
Filing of application and indemnity bond with registrar
Obtaining NOC from concerned Regulatory Authorities
Removal of name from the register of Members
Documents required:
- Copy of Indemnity bond;
- Copy of statement of assets and liability certified by chartered accountant;
- Copy of acknowledgement of latest Income Tax Return;
- Copy of Consent of all Partners;
- Copy of Consent of all Creditors.
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