There are instances where a registered Limited Liability Partnership wishes to make the LLP Wind Up and close the business. A Limited Liability Partnership is bound to follow few compliances even if they are not carrying out any business. In such situations striking off, a Limited Liability Partnership is more cost-effective than continuing the same. Prior to the new amendments, closing up a Limited liability partnership was a mammoth task of extremely complex nature. However, the current system is quite simple and is quicker to take into effect.
Cases where the partners of the Limited Liability Partnership wishes to close the business, they can make an application to Regional Registrar Of Companies using Form 24 and the Registrar after complete due diligence will strike off the name of the Limited Liability Partnership.
Following is the process of applying for Strike Off or LLP Wind UP:
1. File all pending annual ROC compliances for LLP wind up:
While few may think this is a way out to escape from the pending ROC compliances, it’s completely opposite when it comes to Strike off an LLP. The Registrar Of Companies won’t accept your closure Application until all your pending returns are filed. So, the first step would be to file the pending Form 8 and Form11 of the LLP.
2. Close Books Of Accounts
When the LLP is required to cease its business operations, all its books of accounts must be closed in order to proceed further.
3. Close Bank Accounts
All the bank’s accounts in the name of the Limited Liability Partnership should be closed.
4. Preparation of Documents for LLP Wind Up
After the books are closed and the bank account is shut, the documentation process shall begin. This stage is recommended to be done under professional supervision since there are a lot of formalities and documents to be processed here such as affidavit’s, declaration of indemnity, declaration of no liability, and certification from a professional.
5. File Form 24
Finally, once the documents are ready you can proceed to fill the form 24, The Registrar on receipt of the application once satisfied will send a notice of strike-off.