Close Your LLP
Closing a Limited Liability Partnership (LLP) requires following the formal process laid down by the Limited Liability Partnership Act, 2008.
The process involves various steps, including:
- Board resolution: The designated partners of the LLP must pass a resolution approving the closure of the LLP and authorizing a designated partner or authorized person to initiate the closure process.
- Shareholder approval: The partners must approve the board resolution through a special resolution, which requires the approval of at least 75% of the partners.
- Filing of forms: The authorized person must file various forms with the Registrar of Companies (ROC) such as Form 24, Form 4, etc. and obtain a No Objection Certificate (NOC) from various authorities.
- Payment of dues: All the dues such as taxes, liabilities, fees, etc. must be paid before initiating the closure process.
- Publication of notice: A public notice must be published in a leading newspaper and the official gazette stating the intention to close the LLP.
- Distribution of assets: The assets and liabilities of the LLP must be settled, and the remaining assets must be distributed among the partners as per their entitlement.
- Final closure: After completing all the necessary steps, the authorized person must file the final documents with the ROC, and the LLP will be struck off from the Registrar of Companies.
It is important to note that the process of closing an LLP can be complicated and time-consuming. It is advisable to seek the guidance of a professional or legal expert to ensure that all the steps are completed correctly and in compliance with the applicable laws and regulations.