Limited Liability Partnership (LLP) is a general partnership, set up under certain legal terms in which all the partners have limited liabilities. The LLP Act, 2008 provides guidelines on closing an LLP. Two different methods to close an LLP are declaring the LLP defunct (A) and winding up the LLP(B)

An application should be submitted to the registrar in the case the LLP is not in a functional position or defunct along with Form 24 along with the required documents as mentioned in the form under Section 37(1)(b). Post the submission, the name of the LLP will be removed from the LLP’s register.

Under winding up the LLP based on LLP Act 2008, Sections 63, 64, and 65, there are two stages winding Up and dissolution.

Under voluntary winding up, where the partners decide amongst themselves to discontinue and close the LLP. This can be done by passing a resolution with the consent of at least 3/4th of the total number of partners. A copy of the resolution should be filed with the Registrar on Form-1, within 30 days of passing the resolution. A copy of authorization should be given to the person, taking care of the process of winding up.

The process also involves winding up with creditors in which an announcement is made by the majority of the partners (in Form 2) stating that they have no sum unpaid or will pay within an assured period, generally fixed by the partners but not exceeding a year from date of resolution.

The publication of winding up the resolution is mandatory after the passing of the resolution for winding up and receiving consent from the creditors for winding up. The LLP should give a notice of the resolution by advertisement in a newspaper within 14 days in the area where the office is registered or the location of the main office.

The next step is the appointment of a voluntary liquidator, with the approval of the majority of the partners, through resolution, with fixed remuneration. This is done only after the approval of 2/3rds of the creditors of the LLP. Creditors too have a choice to nominate an LLP liquidator. Preference is given to the LLP liquidator appointed by the creditors, in a case of appointments by both the creditors and the partners. The Tribunal will appoint an LLP liquidator, in case of acting no liquidator.

Finally, the dissolution process begins with the discharge of liabilities and liquidation of assets. Post this report will be submitted by the liquidator, in Form 9, outlining the process of winding up, the final closing of the accounts with details, and the assets liquidated. Post this, the approval of the partners and creditors is sought for dissolution.

One can take the help of agencies, who can help in this complicated process.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.