How to shut down an LLP in India?

 In Limited Liability Partnership, all the partners have limited liabilities while setting up it follows certain legal terms and conditions. There are many occasions where people even don’t know how to initiate winding up voluntarily. On such situation, the LLP must pass a resolution to wind up the LLP with approval of at least three-fourths of the total number of Partners.

Different methods to close an LLP –

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

A) Declaring the LLP as Defunct

In case the LLP wants to close down its business or where it is not carrying on any business operations for one year or more, it can make an application to the Registrar for declaring the LLP as defunct and removing the name of the LLP from its register of LLP.

B) Winding up of LLP

The LLP Act 2008 provides for the following two modes for winding up the LLP which is stated below:

• Voluntary Winding-up: Under this, the partners may between themselves decide to stop and wound up the operations of the LLP.
• Compulsory winding up - A limited liability partnership may be compulsorily wound up by the Tribunal, —

1. There are less than two Partners in the LLP for more than 6 months.
2. The LLP is not in a position to pay its debts.
3. The Tribunal believes that it is just and equitable that the LLP should be wound up.

How can we help you?

The process of winding up an LLP includes huge paperwork. So, we at Online Legal India™ can help you and make this process simple and easy. We have served more than 1,20,000 happy customers and have the finest legal minds in the business who would give you assistance across the country