Closure of LLP

Closure of LLP

 Under the Limited Liability Partnership (LLP) Act, 2008, LLPs that are inactive or wish to close voluntarily can apply for strike off from the Registrar of Companies (RoC). Here’s the procedure for striking off an LLP:

  1. Decision to Strike Off: Obtain the consent of all partners to strike off the LLP. This decision should be documented through a resolution passed by the partners.
  2. Settlement of Liabilities: Ensure that all outstanding liabilities, taxes, and obligations of the LLP are settled before applying for strike off.
  3. Maintain Compliance: Ensure that the LLP has filed all required annual returns and statements up to the date of strike off.
  4. Prepare Application: Prepare the application for striking off the LLP using Form 24. The application should be signed by at least two designated partners of the LLP.
  5. Documentation: Attach necessary documents with the application, such as consent of partners, statement of accounts showing assets and liabilities, indemnity bond, and other required declarations.
  1. Indemnity Bond: Each designated partner should execute an indemnity bond stating that they will indemnify any liability that arises after the striking off.
  2. Application Submission: Submit the application, along with the required documents, to the Registrar of Companies (RoC).
  3. RoC’s Verification: The RoC will verify the application and supporting documents. If satisfied, they will issue a public notice in the Official Gazette and on their website stating that the LLP will be struck off after a specified period (usually 30 days).
  4. Objections and Removal: Any person who objects to the striking off can submit their objections to the RoC within the specified period. If valid objections are received, the strike-off process may be halted.
  5. Strike Off: If no valid objections are received within the specified period, the RoC will strike off the name of the LLP from the register and issue a notice of strike off in the Official Gazette.
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