An LLP is an artificial person who can’t die as a natural death. It comes into existence through legal proceedings and hence ceases to exist in the same manner. Winding up means closing up of a company’s concerns, which may be by the reason of Insolvency or otherwise, by the realization of Assets, payment of Liabilities and distribution of surplus if any amongst the partners of LLP. The winding-up of an LLP may be either Voluntary or by Tribunal and LLP so wound up may be dissolved. Dissolution is an event wherein the name of LLP is removed from the register of LLP’s and the fact is notified. Dissolution puts an end to the existence of a company.
Reasons Behind Winding Up an LLP
There are many reasons behind winding up an LLP.
- No Profitability.
- Idle Business Activities.
- Voluntary Winding Up.
- Completion of any kind of Project.
- Death of a Partner.
Documents Required to Close an LLP in India
These are the required documents which are mandatory to close an LLP in India:
- PAN Card
- LLP Agreement along with any modifications made therein.
- Address Proof of Firm.
- Accounting Information.
- NOC From Creditors.
- Statement of assets and liabilities of the LLP certified as true and correct by auditor/ chartered accountant in practice.
Stepwise Procedure for Closure of LLP in India
These are the stepwise procedure for the closing of an LLP in India:
- Closure of Bank Account.
- Prepare a Statement of Accounts.
- Partners Meeting and Consent.
- Drafting of Affidavit and Indemnity Bond.
- Digital Signature of at least one designated partner.
- Application filing for the closure of LLP.
Tradenfill is here to help you to wind up of your LLP. If you want some advice then you can contact our advisor through either mail: firstname.lastname@example.org or call at +91-9654 533433.