Close the LLP

Closing an LLP (Limited Liability Partnership) involves several steps to ensure legal compliance and the orderly dissolution of the business. Here's a general guide on how to close an LLP.

Decision to Close: Obtain the unanimous consent of all partners to close the LLP. This may involve holding a meeting and passing a resolution to wind up the affairs of the LLP.

Appointment of Liquidator: If required by local regulations or the LLP agreement, appoint a liquidator to oversee the winding-up process. The liquidator can be one of the partners or an external professional.

Inform Authorities: Notify the Registrar of Companies (RoC) about the decision to close the LLP. This is typically done by filing Form 24 (Application for Striking Off the Name of the LLP) along with the required documents.

Settle Debts and Liabilities: Pay off or settle any outstanding debts, liabilities, and obligations of the LLP. This includes ensuring that all creditors are notified and settlements are made.

Asset Distribution: If there are remaining assets after settling debts, distribute them among the partners according to the profit-sharing ratio outlined in the LLP agreement.

Filing of Final Accounts: Prepare and file the final accounts of the LLP with the RoC. This should include a statement of assets and liabilities as of the date of closure.

Tax Clearance: Obtain a tax clearance certificate from the Income Tax Department or relevant tax authorities. This certifies that all tax liabilities have been settled.

Cancellation of PAN and TAN: Surrender the PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) of the LLP to the Income Tax Department.

Public Notice: Publish a public notice in a local newspaper announcing the closure of the LLP. This notice may be a legal requirement in some jurisdictions.