What Is LLP Closure?
In case the LLP wants to close down its business or where it is not carrying on any business operations for the period of one year or more, LLP can make an application to the Registrar of Companies for closing the LLP and removing the name of the LLP from its register of LLP’s. An application is required to be made in e-Form 24 to the Registrar of Companies for Striking off the name of the LLP under Rule 37(1)(b) and 37(1A) of LLP Rules.
What are the main conditions for filing an application for striking off a by a defunct LLP?
PAN Card
It should be inoperative from the date of incorporation OR inactive for a period of at least one Finacial year
NIL assets / liabilities as on date of application.
Bank account should be closed on the date of application.
Procedure
LLP Form 24 can be filed only by LLPs that never commenced business or have ceased commercial activity.
LLP Form 24 can be filed only by those LLP that have no creditors and no bank account AS ON date of closure of LLP with registrar.
All the Designated Partners of the LLP must first execute an affidavit, either jointly or severally, that the Limited Liability Partnership ceased to carry on commercial activity from (Date) or has not commenced business.
Along with Form LLP 24 the income tax return of the LLP must be enclosed.
After incorporation of a LLP, the LLP agreement must be filed with the MCA within 30 days of registration.
Once all the documents for filing of LLP Form 24 is prepared, a statement of accounts disclosing NIL assets and NIL liabilities.
The above mentioned documents along with LLP Form 24 can be then filed with the MCA to strike off name of LLP. On processing the application, if found acceptable, the concerned Registrar of Companies would cause a notice to be published on the MCA website announcing the striking off of the LLP.
Advantages
It encourages you to spare each year consistence cost.
Spares you from rebelliousness punishments.
No More Headache of record keeping.
No more executive in Default.
Shutting an organization will keep you from superfluous IT requests