Documents needed to close an LLP

To close an LLP you have to file an application with the consent of partners and creditors, indemnity bond, statement of assets and liabilities, acknowledgement of ITR, resolution and other documents.

Any LLP can close down its business by adopting any of the following ways:

1. Declaring the LLP Defunct
2. Winding up of LLP

The procedure for striking off the name of the LLP can be initiated by the ROC or by the LLP. What so ever is the way to close the LLP, eform 24 is required to file to the Registrar with the following stated documents to shut the LLP:                            

1. Application required

• A detailed application for Striking of the LLP

A copy of the detailed application is required to be made in eform 24 to the ROC (Registrar of Companies) stating the full details of LLP and reason for closing the LLP.

•  Authority to make the application

  A copy of ‘authority to make the application’ is attached with the eform 24 to certify that the person who is making an application for closing the LLP, must be authorised by all the partners to make such application.

2. Consent of Related Parties

• Consent of all partners

Copies of self-explanatory statement .i.e consent letters from all the partners must be attached with the eform which referring the consent of the partner to authorise the person to perform on behalf of them.

• Consent of all creditors

  In the case where an LLP have the creditors, then the consent from all the creditors has to be obtained. If LLP has no creditor, then certify that LLP has NIL creditor.

3. Undertaking/ indemnity bond

The application has to be submitted with the indemnity bond/ undertaking duly signed by the designated partner. If any person is legally claiming the compensation after the LLP to be stricken off, then this bond refers the promise to indemnify the losses stemming from the failure.

4. Assets and Liabilities Formalities

• Statement of assets and liabilities

  Application filed also be supported by a copy of the statement of assets and liabilities duly certified as true and correct by the auditor or chartered accountant in practice. So that ROC has cause to believe that the LLP has been made the sufficient provision to release the due amount.

• Report of valuation of the asset

   If there are any assets with the LLP then a valuation report of assets has to be submitted to the registrar. This valuation report exhibits the real value of the company’s assets.

5. Acknowledgement of income tax return

It is necessary to file the income tax return whether LLP is conducting any business or not. A copy of the acknowledgement of the latest income tax return is required to file with the ROC in eform 24.

6. Other Documents Required in Closing Procedure

• Affidavit

  Application submitted should be supported by the duly sworn affidavits which declare that all the information provided to be true, from all the partners.

• NOC(No Objection Certificate)

  If in case LLP is registered with any regulatory body then 'No Objection Certificate' has to be obtained with the concerned authority.

• DSC (Digital Signature Certificate)

  the signature which is obtained at the time of incorporating the LLP. Required while filing the eform 24.

7. Resolution

Only in the case of compulsory or voluntary winding up you have to pass a resolution by the at least 3/4^th of the partners and file the copy of partners meeting a resolution for the closure of LLP within 30 days to the registrar.