LLP is incorporated under Limited Liability Partnership Act, 2008 and the existence of LLP comes to an end through a legal process called Dissolution of LLP under the LLP Act. Closing a Limited Liability Partnership is a tedious process as it requires several formalities and compliances. Limited Liability Partnership Act, 2008 has prescribed a procedure for winding up and dissolution of an LLP. LLP can be closed for various reasons and a few of them are as follows –
- Partners of LLP has reduced below 2 for a period of 6 months
- LLP has failed to file its Annual Returns or Statement of Solvency for immediate 5 financial years
- Partners voluntarily agree to close the LLP
- LLP is unable to pay its debts
- The Tribunal holds it just and equitable to wind up the company
Modes of Winding-Up of LLP
- Voluntary Winding Up
- Compulsory Winding Up
When the LLP is dissolved then its name is struck off from the records of ROC and the same is notified in the Official Gazette of Ministry of Corporate Affairs.
Since, Closure of LLP is a challenging task thus it is always suggested to take professionals’ help.Seek Assistance with LLP Closure
Frequently Asked Questions (FAQs)
Winding-up of LLP is the closure of existence of LLP or the end of its life either by itself or by NCLT under the LLP Act, 2008.
- Voluntary Winding-up
- Compulsory Winding-up
When all the partners of the LLP mutually decide to close the affairs of LLP then it is called as Voluntary Winding up of LLP.