An LLP can be closed, only when it has not commenced business or is not been engaged in the activity of business for the last 1 year. The closure or final application needs to be filed with the mutual consent of all the partners who are present in the firm. Where a limited liability partnership is not carrying on any business or important operation for a period of one year or more, such LLP can make an application to the Registrar, with the consent of all partners of the limited liability partnership for striking off its name from the register within the LLP close timeline.
Step 1: Resolution
With LLP’s close support, a resolution has to be passed by all or ¾ th of the company partners who are willing to dissolve the partnership.
Step 2: Form No. 1
Within 30 days of passing the required resolution, form no.1 is filed accordingly with the Ministry of Corporate Affairs (MCA) with a copy of the resolution is required.
Step 3: No Debt Declaration
At least two three members of the LLP have to declare that it has no debts or liabilities found. Or if it does, it will be settled within one or 6 months of the year from the commencement of winding up.
Step 4: Form 4 & Value of Assets process
Form No. 4 along with a procedure report of the value of LLP’s assets has to be submitted to the registrar within 15 days of the time span of filing the forms and a statement declaring that the LLP is not being closed to cheat anyone at any cost.
Step 5: Creditor Consent
The next step is to get consent from the creditors of the LLP, to wind up the whole business. For this purpose, at least the ⅔’rd of company creditors have to provide consent.
Step 6 – Certificate from a Chartered Accountant
The next step is to get a certificate from a Chartered Accountant in Practice on statement of accounts as on the date of closing LLP
Step 7 – Filing Form 6
Within 14 days of a time span of receiving consent from creditors, an advertisement has to be correctly filled in the local newspaper. In case the LLP has an assets or liabilities process, a liquidator is appointed for this process and his/her statement needs to be correctly filed using form 6.
Step 8: Filing Form 9
Prepare the LLP’s final clear account statement, and submit them along with form 9 to conclude all formalities processes.
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