Closing a Limited Liability Partnership (LLP) requires careful attention to legal compliance and procedural steps. At Global Taxman, we assist in winding up LLPs efficiently, ensuring all regulatory requirements are met.
What is Winding Up of an LLP?
Winding up an LLP is the process of legally closing down the business by settling liabilities, distributing remaining assets, and deregistering the LLP with the authorities. Once completed, the LLP ceases to exist as a legal entity.
Methods of Winding Up
Voluntary Winding Up: Initiated by the partners when the LLP is solvent and agrees to close operations.
Compulsory Winding Up: Ordered by a tribunal due to insolvency, non-compliance, or other legal issues.
Reasons for Winding Up
Continuous financial losses.
Partners' mutual decision to discontinue operations.
Disputes among partners that cannot be resolved.
Failure to meet compliance requirements.
Step-by-Step Process
Resolution by Partners: Pass a resolution with the consent of 3/4th of the partners.
Appointment of Liquidator: Assign a liquidator to manage asset distribution and liability settlements.
Notification to Creditors: Notify creditors about the winding-up process and settle outstanding dues.
Submission of Documents: File the required documents with the Registrar of Companies (RoC).
Final Dissolution: Obtain approval for dissolution and deregistration of the LLP.
Documents Required
LLP Agreement.
Resolution for winding up.
Statement of accounts showing no liabilities.
Income tax clearance certificate.
Affidavits and indemnity bonds from partners.
Consent of creditors, if applicable.
Why Choose Global Taxman?
Expert Guidance: Our team ensures a smooth and legally compliant winding-up process.
End-to-End Support: From filing resolutions to obtaining approvals, we handle everything.
Cost-Effective Services: Affordable pricing with transparent processes.
Frequently Asked Questions (FAQs)
Can an LLP with outstanding liabilities be wound up? Yes, but all liabilities must be settled or agreed upon with creditors.
How long does the process take? The timeline depends on the complexity of the case, usually ranging between 3–6 months.
What happens if an LLP fails to file for winding up? The LLP remains active, and penalties may be imposed for non-compliance.
Can an LLP be revived after dissolution? No, once dissolved, the LLP ceases to exist and cannot be revived.
