Closure of LLP in Jhansi

Closure of LLP in Jhansi

A Limited Liability Partnership (LLP) is a flexible form of business that combines the features of a partnership and a private company. It provides limited liability protection to its partners while allowing them to manage the business directly. However, over time, due to various reasons such as financial loss, inactivity, or a change in business plans, the partners may decide to close the LLP. In such cases, it is important to close the LLP legally and formally by following the procedure set by the Ministry of Corporate Affairs.

Methods of Closing an LLP in Jhansi

There are three main ways to close an LLP, depending on its business condition and financial status:

1. Strike Off through Form 24 (Voluntary Closure)

This is the most regularly used method for the purpose of closing an LLP that is no longer active or has not started its business after incorporation. Under this method, the partners of the LLP can voluntarily apply to have the name of the LLP struck off from the MCA register. This is done by submitting Form 24 along with the required documents.

2. Voluntary Winding Up

In this method, the LLP is voluntarily closed by its partners. This is used when the LLP has some assets and liabilities that need to be settled. The LLP must pay all its dues, complete pending contracts, and distribute remaining assets (if any) among the partners. A resolution must be passed and also filed with the Registrar. A liquidator may also be appointed to handle the process.

3. Compulsory Winding Up by Tribunal (NCLT)

This method is used when the LLP is involved in fraud, fails to comply with various legal requirements, or is unable to pay its debts. The Tribunal (National Company Law Tribunal) may pass an order for winding up if:

• The LLP has acted against the interests of sovereignty or the law.
• The LLP has not filed annual returns or financial statements for five consecutive years.
• The LLP is insolvent or unable to pay its creditors.
• There are just, fair, and equitable reasons for closure.

Eligibility for Closure of LLP in Jhansi

To apply for closure of an LLP through Form 24, the LLP must fulfil the following eligibility criteria:

• The LLP must not be involved in any business activities for at least one year.
• The LLP should not have any outstanding liabilities or dues to any party.
• There should be no open court cases or legal proceedings against the LLP.
• The LLP should have filed all overdue annual returns (Form 8 and Form 11) up to the date of closure.
• All designated partners must provide their consent in writing to close the LLP.
• There should be no creditors, or the creditors must have given their NOC for closure.
• The bank account of the LLP, if any, must be closed before applying.

Documents Required for Closure of LLP in Jhansi

To close an LLP in Jhansi, the following documents must be submitted to the Registrar's office along with Form 24:

1. Application for Strike Off (Form 24)
2. Copy of LLP Agreement
3. Resolution signed by All Partners stating the intention to close the LLP.
4. Affidavit from each designated partner confirming no activity and no dues...!
5. Indemnity Bond from each partner to indemnify any future liability
6. Statement of Accounts (not older than 30 days from the filing date)
7. Acknowledgement of Latest Income Tax Return(if filed)
8. Consent Letter or NOC from Creditors (if applicable)
9. Bank Account Closure Certificate
10. KYC Documents (PAN and address proof) of all partners
11. Utility Bill or Address Proof of the LLP office

Procedure for Closure of LLP in Jhansi

Step 1: Cease Operations

It must ensure that the LLP has not conducted any business or financial transactions for at least one year. Close the bank account, pay off liabilities, and ensure there are no pending legal matters.

Step 2: Meeting and Partner Approval

Call a meeting of all partners. Pass a resolution stating that the LLP is no longer active and should be closed. All partners must give their consent in writing.

Step 3: Prepare Financial Statements

Prepare a statement of account certified by a chartered accountant. This should reflect nil assets and liabilities and must not be older than 30 days from the date of application...!

Step 4: Prepare Affidavits and Bonds

Each partner must sign an affidavit confirming that there has been no business activity. They must also sign an indemnity bond, taking responsibility for future claims, if any.

Step 5: File Form 24

Log in to the official MCA portal and fill out Form 24. Upload the required documents, pay the prescribed fee, and submit it digitally using the DSC of a designated partner...!

Step 6: MCA Review

The Registrar of Companies (RoC) will review and examine the application, and they may also request clarifications or additional documents. Once satisfied, the RoC will publish a notice and strike the LLP from the register.

Step 7: Final Approval

If no objections arise and are received, the RoC will issue a notice of strike-off and publish it in the Official Gazette. The LLP will then be considered officially closed.

Benefits of Closing an LLP in Jhansi

1. Avoid Penalties and Notices: Proper closure ensures there are no future penalties for not filing annual returns or compliance documents.
2. Free from Legal Responsibilities: Partners are no longer legally bound to maintain books, file returns, or face audit requirements.
3. Saves Time and Cost:It prevents the need to pay for audits, accountants, and compliance experts year after year.
4. Improves Partner Reputation:A clean exit from an LLP without defaults reflects positively on the business record of the partners.
5. Focus on New Business Ideas: Once the LLP is closed, partners can invest their energy and resources into other profitable ventures without distractions.

Why Choose Us for LLP Closure in Jhansi?

• Expert Team: We have a team of skilled and qualified legal and accounting professionals who can handle closure filings effortlessly and seamlessly.
• Fast Service: We aim to complete the process at the earliest with proper documentation and filing.
• Affordable Plans: We offer competitive pricing for LLP closure services with no hidden charges.
• Online & Hassle-Free: The entire process can be done remotely – you don’t have to visit any office or department.
• Personalised Support: Our team is always available to answer all your questions and guide you through each step.