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CLOSE LLP COMPANY
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What is Close LLP?

Closing a Limited Liability Partnership (LLP) means legally dissolving it when it is no longer in operation. Many businesses choose to close their LLP if it is inactive, not generating profits, or if the partners decide to discontinue operations. The closure ensures that the LLP’s name is removed from the Ministry of Corporate Affairs (MCA) records and that the partners are released from future compliance responsibilities.

When can a llp be closed

LLP is Inactive
If the LLP is not carrying on any business for at least 1 year.
Voluntary Closure
Partners mutually agree to dissolve the LLP.
Regulatory Order
If MCA or NCLT orders closure for non-compliance or inactivity.
Business Not Profitable
LLP is not generating sustainable profits and partners wish to exit.

Documents Required for Closing LLP

PAN Card
Of all designated partners.
LLP Agreement
Original LLP agreement executed between partners.
Consent of Partners
Written consent of all partners for closure.
Statement of Accounts
Showing LLP has no assets or liabilities.
Affidavit & Indemnity Bond
From designated partners confirming closure request.
Latest IT Return (if filed)
Copy of the latest income tax return filed by LLP.

Benefits for closing a llp

Compliance for Closure

Filing of Form 24
Mandatory form with MCA for striking off the LLP.
Consent from Partners
All partners must approve the closure request.
Clearance of Liabilities
LLP must settle all debts before applying for closure.
Closure of Bank Account
All LLP bank accounts must be closed before filing.

Steps

1

Pass Resolution

Partners pass a resolution agreeing to close the LLP.

2

File Statement of Accounts

Submit statement showing NIL assets and liabilities, certified by a CA.

3

Prepare Affidavit & Indemnity Bond

All designated partners must submit affidavits and indemnity bonds.

4

File Form 24 with MCA

Attach required documents and apply for striking off the LLP.

5

Approval by ROC

Once verified, Registrar of Companies approves closure and removes LLP name from records.

Conclusion

Closing an LLP is the right step when it is no longer active or profitable. It helps partners avoid heavy penalties and compliance burdens in the future. With Ramdoottax, the process of closing your LLP is hassle-free, affordable, and handled by experts, ensuring complete compliance with MCA regulations.

About Us

Welcome to Ramdoottax, your trusted partner in company registration, compliance, tax filing, and trademark services.

We provide professional, reliable, and affordable business solutions to help entrepreneurs and companies grow without worrying about complex legal and financial processes.

Our mission is to simplify business compliance with transparency and efficiency.

Ramdoottax Company

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Frequently Asked Questions

When can an LLP apply for closure?
An LLP can apply for closure if it has not carried on business for one year or more, or if all partners mutually decide to wind up operations.
What happens to the liabilities of partners after closure?
After closure, the LLP ceases to exist as a legal entity. However, partners remain personally liable for any fraud, misconduct, or unpaid liabilities before closure.
Can an LLP with outstanding debts be closed?
No, an LLP must settle all dues, loans, and liabilities before applying for closure. A “No Objection Certificate” may be required from creditors.
Is filing with the MCA mandatory for LLP closure?
Yes, closure of an LLP must be filed with the Ministry of Corporate Affairs (MCA) using Form 24, along with necessary approvals and declarations from partners.
What happens if an LLP is not officially closed?
If an LLP is not closed officially, it will continue to attract penalties for non-filing of annual returns and compliance, even if there is no business activity.

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