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Closure of LLP

Closure of LLP

Closure of LLP

The Ministry Of Corporate Affairs has recently amended Limited Liability Partnership Rules, 2009 by introducing the Limited Liability Partnership (Amendment) Rules, 2017 with effect from 20th May, 2017. With this amendment, LLP Form 24 has been introduced by the MCA and it is now possible to easily close a LLP by making an application to the Registrar for striking off name of LLP. In this article, we look at LLP Form 24 and the procedure for striking off name of LLP in detail.

<strong>STEP WISE PROCEDURE FOR CLOSURE OF LLP IN INDIA

  • Closure of Bank Account – The bank account if opened need to be closed before the procedure of closing the LLP can be started. The designated partners need to approach banker with a request for closure and obtain a closure certificate from the bank that the account maintained with them has been closed.
  • Prepare a statement of Accounts – A statement of assets and liabilities need to be prepared and signed by the designated partners, which need to be certified by the auditors of the LLP or in case the LLP did not appoint an auditor any chartered accountant in practice.
  • Partners meeting and Consent – Once the bank account of the LLP is closed and a statement of assets or liabilities is drawn and attested by the auditor or any other CA, the partners need to meet and decide on the closure of LLP. the decision for closure must be made as prescribed in the LLP agreement.
  • Drafting of Affidavit & Indemnity Bond – Once the partners have decided to close the LLP, an affidavit to the truthfulness of the information and documents which shall be filed with the ROC. Further, an indemnity bond to satisfy any future debt which may arise to the LLP after its closure is prepared, signed and attested.
  • Digital signature of at least one Designated Partner – DSC is the equivalent of physical or paper certificates in digital format. As the application for LLP closure is filed online with Digital Signatures of at least one designated partner. To obtain a class-2 digital signature for the partner a Photo, copy of ID and Address proof duly attested by the gazetted officer is to be submitted along with Form.
  • Application filing for closure of LLP – Finally, an application for closure of LLP is to be filed with necessary attachments duly signed and attested by the designated partner and a practising chartered accountant, or a company secretary or a cost and management accountant. The roc, if satisfied with the application, shall close the company within 90-120 days.

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