Closure of Limited Liability Partnership in Tamil Nadu

Closure of Limited Liability Partnership in Tamil Nadu

Closing an LLP in Tamil Nadu includes a number of steps, from stopping business action to getting a Chartered Accountant's licence and filling Form LLP 24. The process stresses the importance of fixing all duties and conflicts to avoid future burdens. LLP ending through strike off is a smart move for slow or failed LLPs to keep compliance and avoid fines. The shorter way adopted by the Ministry of Corporate Affairs reduces the closure process, ensuring a quick and efficient split of the LLP.

Requirements for Closure of an LLP in Tamil Nadu

To start the closing of an LLP in Tamil Nadu, certain prerequisites must be met. These factors form the base for a good dissolution process:

• Cessation of Business Operations: The LLP must either never start business activities or have fully stopped all commercial activities.
• Bank Account Closure: All current bank accounts of the LLP must be closed.
• Open Liabilities: Any extra accounts must be paid by selling assets or other means to ensure the LLP has no open debts or liabilities.
• Permission of Partners and Creditors: The LLP must obtain the permission of all partners and creditors for the closure.
• Indemnity Bond: An indemnity bond must be obtained, covering the partners from any future obligations or claims against the LLP.
• Description of Assets and Liabilities: A full description of the LLP's assets and liabilities must be made.
• Acceptance of ITR: The acceptance of the LLP's Income Tax Return (ITR) must be received.
• LLP Form 24: The LLP must file Form 24 with the Registrar of Companies (ROC) to ask for the striking off or closing of the LLP.

Documents Required for LLP Closure in Tamil Nadu

1. Consent of Partners: Partners' consent is important for closing the LLP, showing total agreement on the closure choice.
2. Statement of Assets and Liabilities: A full statement explaining the LLP's financial position, including assets and liabilities, is necessary for closure.
3. Recognition of ITR: Providing the recognition of the LLP's latest Income Tax Return is needed to show compliance with tax obligations.
4. LLP Deed: The original LLP deed must be enclosed with the closure application to show the LLP's official structure and deals.
5. Papers and Indemnity Bonds: Partners must sign documents showing the LLP's stop of business operations and cover any possible claims post-closure.
6. CA confirmed Statement of Accounts: A statement of accounts confirmed by a Chartered Accountant, showing NIL assets and liabilities, is needed for close.
7. Bank Closure Statement: Evidence of closing all bank accounts under the LLP's name is important to settle financial problems.
8. Identity and Address Proof of Partners: Providing identity and address proof of all partners is important for checking reasons.

Process of Closing an LLP in Tamil Nadu

The process of closing an LLP in Tamil Nadu consists of several steps, as outlined in the LLP Amendment Rules, 2017. Firstly, the LLP have to document the LLP agreement within 30 days of creation with the Ministry of Corporate Affairs (MCA). If the LLP fails to file the agreement, it should record the initial LLP settlement, together with any changes, within a specified time frame. Additionally, any not on time returns (Form 8 and Form 11) have to be made for the financial year throughout which the LLP stopped commercial enterprise.

Before filling out Form 24, the LLP must receive a statement from a working Chartered Accountant describing NIL assets and NIL liabilities. This statement must be signed and filed within 30 days of the filing date of Form 24.

The LLP dissolution process in Tamil Nadu through Form 24 includes several key steps:

1. Cease Commercial Activity: Form 24 can only be filed for LLPs that have never started a business or have ended all commercial activity.
2. Close Bank Account(s): All bank accounts under the LLP's name must be closed, and a letter showing the account closing must be received from the bank.
3. Prepare Affidavits & Declaration: All Designated Partners must write a paper saying that the LLP has stopped its commercial operations or never started any business.

Upon achieving these requirements, the LLP must file all papers and Form 24 with the MCA to finish the striking-off process. After checking the papers and handling the application, if no mistakes or discrepancies are found, the appropriate authority will issue a notice (and post it on the MCA website) announcing the closure of the LLP in Tamil Nadu.

It is important to remember that the LLP must file Income Tax Returns up to the date of the financial year during which it stopped its business. Additionally, yearly filing forms such as Form 8 and Form 11 must be finished while closing the LLP.

Benefits of Closure of LLP in Tamil Nadu

1. Legal Compliance: Closing an LLP in Tamil Nadu ensures compliance with regulatory requirements, halting legal action once the company stops its operations. This helps the business owner to be at ease, not burdened with fees or fines in case of non-compliance.
2. Financial Closing: Resolving all financial duties and costs is a big benefit of LLP closing in Tamil Nadu. This process reduces the difference between general and limited partnerships, resulting in the same party taking care of the important aspects of the newly formed business.
3. Business Shift: Facilitating a smooth move for partners and clients is another benefit of LLP closing in Tamil Nadu. Once the ending process has been started, the company can put its money, time, and resources into a fresh project, allowing for a profit and lowering extra costs in terms of the old business.
4. Avoiding Fines: Preventing fines for non-compliance is a key benefit of LLP closure in Tamil Nadu. The statutory compliance requirements of an LLP and running the LLP can become difficult and expensive for a business. In case there is no sizable profit through the LLP, then it is suggested to go ahead with the process of LLP closure in Tamil Nadu.

Why Choose Kanakkupillai for LLP Closure in Tamil Nadu?

Kanakkupillai stands out as a top choice for LLP closure in Tamil Nadu due to its knowledge, experience, and constant commitment to quality. With a deep understanding of the law and political situation surrounding LLP ending, Kanakkupillai offers full help and support throughout the entire process. Our detailed understanding of the necessary papers, compliance requirements, and process details ensures an easy and legally proper closure for LLPs in Tamil Nadu.