Company IncorporationLLP

Form 24 LLP Closure Fees

The declaration must be submitted with Form 24 by the partners, after which the registrar will publish it to the website and proclaim the LLP closed. Find more information regarding the closure of LLP.

The decision to dissolve an LLP may be made for a variety of reasons, including inactivity or non-operation, closure of the LLP’s business, the death of important LLP personnel, a disagreement among the partners, etc. Understanding the many methods by which an LLP terminates is crucial first and foremost. The LLP must be closed under the LLP Act if you do not intend to file the return and do so for specific reasons. When it comes to opening or closing an LLP, Vakilsearch is a well-known brand to learn about Form 24 LLP Closure.

To dissolve your Limited Liability Partnership, you must submit Form 24 to the ROC together with declarations, indemnity bonds, and affidavits from each partner. Your LLP can be closed in 3 easy steps with our assistance at Vakilsearch:

  • Step1: Complete the form, and we’ll respond to all of your questions on terminating an LLP business
  • Step2: Professionals from Vakilsearch assist you in completing the overall end-to-end process
  • Step 3: Within the specified time frames, a courier will deliver the requested documents to you.

The distinction between Striking Off and Winding Up

Winding Off: During an NCLT winding off, the LLP terminates and cannot be revived in due course. The liquidator sells all of the LLP’s assets and uses the revenues to pay off the liabilities. Nobody is held responsible for the unpaid debts that were unable to be satisfied during the liquidation procedure as a result of the winding-up, which is final and brings the LLP to a stop for good.

Striking off: A LLP is struck off through a process that is based on the declaration of its partners; no professional liquidator is involved. The ROC has decided to remove the LLP’s name based on the partners’ affidavits of veracity and indemnity bond stating that they will be held personally accountable for any future liabilities of the LLP. The LLP was effectively closed as a result of the striking-off because there is no longer a compliance need. The LLP’s partners, however, continue to be personally liable for any unpaid taxes, government fees, or other liabilities that arise after the LLP is struck off. We suggest you resolve all differences, settle all accounts, and pay all debts before applying for striking off.

Fees

The LLP must be closed in compliance with the LLP Act if you have any explanation why you won’t be filing the return and closing it. Vakilsearch exhibits a fantastic and effective reputation regarding LLP registration of Termination. 

If all filings are successful, the termination of an LLP should cost little more than ₹5,000 to ₹10,000. This covers creating application charges, submitting application charges, creating affidavits, statements of assets and liabilities, document surrenders, and all other compliances.

The government charges ₹500 for submitting Form 24. LLPs who fail to file any required statutory return are subject to a daily fine of ₹100 with no upper limit.

Step-by-step Procedure for Filing a Request to Dissolve the LLP

You must submit Form 24 to the ROC, along with declarations, indemnity bonds, and affidavits from each partner, to close your Limited Liability Partnership. You can easily close your LLP with the help of Vakilsearch. Form 24 must be filed in the manner described below to close an LLP:

  • Stop Commercial Activities

Only LLPs that have either stopped doing business or have never started it can file an LLP Form 24. Therefore, if the LLP is already in operation and the promoters want to close it, the LLP must first stop all business operations.

  • Closing Bank Accounts

Only LLPs without creditors or an open bank account are eligible to file LLP Form 24. Thus, any bank account opened in the name of the LLP must be closed before LLP Form 24 may be submitted, and the Bank must provide a letter attesting to the closure of the LLP-named bank account.

  • Prepare Declarations and Affidavits.

The Limited Liability Partnership must first submit an affidavit, whether jointly or severally, stating that it has not started doing business or that it ceased doing a commercial activity. Additionally, the LLP Partners must certify that the LLP is free from any debts and protect the LLP against any liabilities that might develop even after the LLP’s name has been removed from the Register. When employing Form LLP 24, the detriment of the Partners would not be eliminated even after the LLP was closed.

  • Organise Documents

The LLP deed and income tax return must be enclosed with Form LLP 24. If the LLP has not conducted any business activities and has not filed any income tax returns, then it is not necessary. If not, the application to close the LLP must also include a copy of the acknowledgement of the most recent income tax return submitted.

  • Fill out any Pending Paperwork

Within 30 days of registration following LLP incorporation, the LLP agreement must be submitted to the MCA. LLP agreements that have been entered into but not yet filed, as well as any revisions, must be filed if this compliance was overlooked.

Before submitting LLP Form 24, any unfiled Form 8 and Form 11 returns that are past due up to the end of the fiscal year during which the limited liability partnership ceased to conduct business or commercial operations must also be done so. The Limited Liability Partnership ceased conducting its revenue-generating business on the date of closure of the commercial operation, and any transactions that took place after that date—such as those in which money was received from debtors or paid to creditors, will not be considered revenue-generating activities.

  • Submit LLP Form 24

LLP The name of the LLP can then be removed by submitting Form 24 to the MCA. After reviewing the application, if it is deemed valid, the appropriate Registrar of Companies will arrange for a notice notifying the striking off of the LLP to be posted on the MCA website.

  • Elimination Of LLPs Name

After a month, the Registrar of Companies will formally close/dissolve the LLP by removing its name from the register and publishing a notice in the Official Gazette.

Conclusion

Within 30 days of the resolution’s passage, the company’s directors must file a petition to close the LLP with the Registrar of Companies. Statements of assets and liabilities from the date of the LLP’s winding up, as verified by at least two partners, must be submitted within 15 days of the resolution’s passage. Closing an LLP is a serious choice, but it should be done carefully because the consequences could be large. Vakilsearch’s specialists can help you with this.

The most dependable and custom legal and compliance solutions are provided by Vakilsearch. According to the registrar’s department of the subsequent authorisation petition, the entire process to close an LLP in India could take anywhere between 3 and 6 months. To dissolve your LLP in India, Vakilsearch can offer a comprehensive strategy in just three easy stages. Reach out to the professionals at Vakilsearch, and we’ll assist you in closing your LLP. You are just a phone call away, our team of experienced business advisors and legal professionals, from the best in legal services, are ready to help you at any time of the day or night.

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