This article provides a comprehensive guide on how to wind up a Limited Liability Partnership (LLP) in India. It covers the process, documentation, and important considerations involved in the winding-up procedure.<\/p>\n\n\n\n
– LLPs are newly formed business entities introduced through the LLP Act, 2008 in India.<\/p>\n\n\n\n
– LLPs offer limited liability to partners and enjoy audit exemption under certain conditions.<\/p>\n\n\n\n
Process of Winding Up an LLP:<\/p>\n\n\n\n
1. Winding up by the Tribunal:<\/p>\n\n\n\n
– Initiated by the tribunal for various reasons, such as insufficient partners, inability to pay debts, or acts against public order.<\/p>\n\n\n\n
– Non-filing of financial statements or annual returns for five consecutive years can also lead to winding up.<\/p>\n\n\n\n
2. Voluntary Winding Up:<\/p>\n\n\n\n
– Requires approval of 3\/4th of the partners.<\/p>\n\n\n\n
– LLP must make a declaration of no debt or ability to pay debts within one year.<\/p>\n\n\n\n
– Assets and liabilities statement, along with valuation of assets (if any), must be filed.<\/p>\n\n\n\n
– Resolution for winding up the LLP should be passed and filed with the registrar within 30 days.<\/p>\n\n\n\n
– Affidavit signed by the majority of partners declaring no debts or ability to pay debts within a specified period.<\/p>\n\n\n\n
– Documents to be filed with the registrar:<\/p>\n\n\n\n
– Statement of assets and liabilities attested by partners.<\/p>\n\n\n\n
– Valuation report (if applicable).<\/p>\n\n\n\n
Other Considerations:<\/p>\n\n\n\n
– Form 2 should be submitted stating no unpaid sums or commitment to clear debts within a specified period.<\/p>\n\n\n\n
– Publication of the winding-up resolution in a newspaper circulated in the registered office territory.<\/p>\n\n\n\n
– Appointment of LLP liquidator, approved by the partners and creditors.<\/p>\n\n\n\n
– LLP liquidator prepares a winding-up report and files it with the registrar and tribunal.<\/p>\n\n\n\n
– Final accounts closure, disposal of property, and dissolution process.<\/p>\n\n\n\n
Striking Off:<\/p>\n\n\n\n
– Introduction of LLP Form 24 allows easy winding up by applying to the Registrar for striking off the LLP’s name.<\/p>\n\n\n\n
– Prior to this amendment, the winding-up process was lengthy and complex.<\/p>\n\n\n\n
After Winding Up:<\/p>\n\n\n\n
– LLP ceases business activities and focuses on liquidation and asset distribution.<\/p>\n\n\n\n
– Once the process is completed, the company will be dissolved, and the LLP will cease to exist.<\/p>\n\n\n\n
Conclusion:<\/strong><\/p>\n\n\n\n Closing an LLP involves following a specific process defined by the LLP Act, 2008. Whether initiated voluntarily or by the tribunal, it is essential to adhere to the necessary documentation and procedures to ensure a smooth winding-up process. The introduction of LLP Form 24 has simplified the process of striking off an LLP’s name.<\/p>\n\n\n\n This article provides a comprehensive guide on how to wind up a Limited Liability Partnership (LLP) in India. It covers the process, documentation, and important considerations involved in the winding-up procedure. Incorporation of an LLP: – LLPs are newly formed business entities introduced through the LLP Act, 2008 in India. – LLPs offer limited liability…<\/p>\n","protected":false},"author":1,"featured_media":2172,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[23],"tags":[],"_links":{"self":[{"href":"https:\/\/dev.taxadwise.com\/wp-json\/wp\/v2\/posts\/1826"}],"collection":[{"href":"https:\/\/dev.taxadwise.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dev.taxadwise.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dev.taxadwise.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dev.taxadwise.com\/wp-json\/wp\/v2\/comments?post=1826"}],"version-history":[{"count":2,"href":"https:\/\/dev.taxadwise.com\/wp-json\/wp\/v2\/posts\/1826\/revisions"}],"predecessor-version":[{"id":2060,"href":"https:\/\/dev.taxadwise.com\/wp-json\/wp\/v2\/posts\/1826\/revisions\/2060"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dev.taxadwise.com\/wp-json\/wp\/v2\/media\/2172"}],"wp:attachment":[{"href":"https:\/\/dev.taxadwise.com\/wp-json\/wp\/v2\/media?parent=1826"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dev.taxadwise.com\/wp-json\/wp\/v2\/categories?post=1826"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dev.taxadwise.com\/wp-json\/wp\/v2\/tags?post=1826"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Pricing: Rs 3000 onwards<\/h2>\n","protected":false},"excerpt":{"rendered":"