LLP Form 24 has been introduced by the MCA to easily close a LLP by making an application to the Registrar for striking off name of LLP. The penalty for LLPs defaulting in filing of any statutory return is Rs.100 per day, without any maximum limit. To close down a limited liability partnership (LLP), the resolution to do so must be filed with the Registrar within 30 days of its passing. Once this has been done, the majority of the partners need to make a declaration to the effect that the LLP has no debts or that it is in a position to pay all debts within a specified period not exceeding one year from the date of commencement of winding up of LLP. Within 15 days of the passing of the resolutions, statement of assets and liabilities for the period from the last accounts closure to the date of winding up of LLP must be submitted, attested by at least two partners. A report of valuation of the assets of the LLP must be prepared.
1) Some Start-ups just started with the idea but after the testing their ideas there is no profitability so they want to close the LLP.
2) There is no business activity for a long time.
3) Partners are not willing to continue the business or partnership.
4) If the LLP is Registered for any specified project and it has been completed.
5) LLP has become bankrupt.
6) Only one partner is remained after the death of the partner and wants to close the business.
7) By the Court order due to any circumstances.
1) Cease Commercial Activity
2) Close Bank Account(s)
3) Prepare Affidavits & Declaration
4) Prepare Documents
5) File Any Pending Documents
6) Obtain Chartered Accountant Certificate
7) File LLP Form 24