Closing a Limited Liability Partnership Company

 Closure a Limited Liability Partnership

The Limited Liability Partnership firm is required to file certain compulsory annual returns whether the business runs or not. If the company fails to file the annual returns, then it will lead to the Closing a Limited Liability Partnership Company and will be subjected to penalties and legal prosecution. According to the LLP Act and the designated directors or partners of the firm are liable to face penalties and legal prosecution. Therefore, get the proper legal procedure to comply with Kanakkupillai.


An LLP or Limited Liability Partnership fulfilling the following factors can file an application for Closure or striking off its registered firm name from the Register of LLP.

LLP should be not working from the date of incorporation or registering or inactive for a time period of one year at least

LLP should not own any assets or properties or liabilities as of the date of application.

The application for Closure or striking off the firm name should be filed along with the specified fee payment, consent of all partners of the firm, affidavits, and indemnity by all designated directors or partners, copy of the latest income tax return, and the latest statement of bank accounts of the firm from the date of application attested by a Chartered Accountant.

A defunct Limited Liability Partnership or LLP can make a closure application to the Registrar with the acceptance from all partners of the firm and to strike out its name from the register.

A defunct Limited Liability Partnership or LLP refers to a firm or LLP which has never started its business operations or not carried any business activities for the immediate past one year and the firm has no assets, properties, and liabilities.

Criteria for the Legal Closure of LLP

·         The LLP or Limited Liability Partnership firm is not operating its business activities since the establishment or at least for one year or longer.

·         Indexed detained returns in Form 8 and Formed 11 up to the end of the financial year in which the LLP terminated to work on its affairs or business matters.

·         Has not fixed any bank account since closed with a credential or certificate.

·         LLP has no obligation or debt due or payment due to any creditors or lenders.

·         Income Tax Returns for the immediate financial year are filed.

Documents Required from Partners & Designated Partners For Closing An LLP

·         Partners need to submit the following documents in order to close the LLP:

·         PAN Card of Partners- aside from the appliance form and indemnity which must be submitted to the registrar, for the closure of LLP, you're also required to submit PAN cards of all the partners and designated partners of LLP.

·         Aadhaar Card of Partners- Similar to PAN card, another document that needs to be submitted for closure of LLP is the Aadhaar card of all the partners and designated partners of LLP

·         Latest Address Proof of Partners- In addition to the above-mentioned two documents, the latest address proof of all the partners of LLP is also needed to be submitted.

·         Consent letter- For the closure of LLP, you would also be required to get the consent letter signed by all the partners and submit it along with the form and fees.

How to Close LLP in India

Step 1: Resolution

A special resolution has to be passed by all or ¾’thof the partners of the company, agreeing to dissolve the partnership.

Step 2: Form No. 1

Within 30 days of passing the resolution, form no.1 is filed with the Ministry of Corporate Affairs (MCA) with a copy of the resolution,

Step 3: No Debt Declaration

At least two members of the LLP have to declare that it has no debts or liabilities. Or if it does, it will be settled within one year from the commencement of winding up.

Step 4: Form 4 & Value of Assets

Form No. 4 alongside a report of the worth of LLP’s assets has got to be submitted to the registrar within 15 days of filing the forms and a press release declaring that the LLP is not being closed to cheat anyone.

Step 5: Creditor Consent

The next step is to acquire consent from the creditors of the LLP, to wind up a Limited Liability Partnership Company. For this purpose, at least ⅔’rd of company creditors have to provide consent.

Step 6 – Filing Form 6

Within 14 days of receiving consent from creditors, an advertisement has to be filed in the local newspaper. In case if the LLP has assets or liabilities, a liquidator is appointed and his/her statement needs to be filed using form 6.

Step 7: Filing Form 9

Prepare the LLP’s final account statement, and submit them along with form 9 to conclude all formalities.

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