Who can wind up or close down a Limited Liability Partnership Company?

The LLP winding-up process can be done by either the LLP’s 3/4th of the total number of partners or the Registrar of Companies (ROC) in case the particular LLP is convicted of being associated with any illegal or fraudulent instance.

Which Act oversees the LLP closure/winding-up process in India?

In India, the Registrar of Companies (ROC) and the Ministry of Corporate Affairs (MCA) overviews the LLP winding-up procedure as per the provisions of the LLP Act, 2008, the Limited Liability Partnership (Amendments) Rules, 2017, and the Limited Liability Partnership (LLP) Settlement Scheme, 2020.

What is the utilization of the Form-24 in the LLP winding up process?

Form-24 is utilized to apply for the LLP winding-up process in the Registrar of Companies (ROC).

Which law regulates the Winding Up of LLP?

Section 63,64 of LLP Act 2008, regulated the process of Winding up an LLP.

Before initiating the LLP winding-up process, what actions should be completed?

In prior to the closing up procedure, the concerned Limited Liability Partnership authority is needed to complete the followings: • Ceasing all business operations • Close bank accounts opened in the name of the LLP) • Paying all the creditors • Chucking out all the properties/ assets to pay the liabilities • Must not own any liability

How to shut down an LLP in India?

By Online Legal India Published On 24 Dec 2020 Updated On 17 Jan 2023 Category Compliance

In Limited Liability Partnership, all the partners have limited liabilities while setting up it follows certain legal terms and conditions. There are many occasions where people even don’t know how to initiate winding up voluntarily. On such situation, the LLP must pass a resolution to wind up the LLP with approval of at least three-fourths of the total number of Partners.

Different methods to close an LLP –

Any LLP can close down its business by adopting any of the following two ways:

A) Declaring the LLP as Defunct

In case the LLP wants to close down its business or where it is not carrying on any business operations for one year or more, it can make an application to the Registrar for declaring the LLP as defunct and removing the name of the LLP from its register of LLP.

B) Winding up of LLP

The LLP Act 2008 provides for the following two modes for winding up the LLP which is stated below:

Voluntary Winding-up: Under this, the partners may between themselves decide to stop and wound up the operations of the LLP.
Compulsory winding up - A limited liability partnership may be compulsorily wound up by the Tribunal, —

There are less than two Partners in the LLP for more than 6 months.
The LLP is not in a position to pay its debts.
The Tribunal believes that it is just and equitable that the LLP should be wound up.

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