Closing a Limited Liability Partnership (LLP)

In case the LLP wants to close down its business or where it is not carrying on any business operations for the period of 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.

In the case of winding up the LLP all the assets of the business are disposed of to meet the liabilities of the same and surplus any, is distributed among the owners. The LLP Act 2008 provides for following two modes for winding up the LLP i.e.: Voluntary Winding up - Under this, the partners may between themselves decide to stop and wound up the operations of the LLP.

Compulsory Winding Up of an LLP in India

A Limited Liability Partnership (LLP) may be compulsorily wound up by the National Company Law Tribunal (NCLT) under specific circumstances as defined by the Limited Liability Partnership Act, 2008.

✅ Grounds for Compulsory Winding Up

An LLP can be ordered to wind up by the Tribunal in the following situations:

1. Voluntary Decision by Partners
   If the LLP passes a resolution that it should be wound up by the Tribunal.

2. Reduced Number of Partners
   If the LLP has had less than two partners for a continuous period of more than six months.

3. Inability to Pay Debts
   If the LLP is unable to meet its financial obligations and pay off its debts.

4. Acts Against National Interests
   If the LLP has acted against the sovereignty and integrity of India, the security of the State, or public order.

5. Non-Filing of Returns
   If the LLP has failed to file the Statement of Account & Solvency or Annual Return with the Registrar for five consecutive financial years.

6. Just and Equitable Grounds
   If the Tribunal believes that it is just and equitable for the LLP to be wound up based on specific facts and circumstances.

📄 Documents Required for Closing an LLP

To initiate the compulsory winding-up process, the following documents are typically required:

• Latest Financial Statements of the LLP

• Recent Bank Statements of the LLP

• Signed Resolutions, Affidavits, and Forms (we will provide the required drafts)

• Consent of Partners (if applicable)

• Statement of Account and Solvency (up to the winding-up date)

• PAN Card and ID proofs of Designated Partners

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• Expert legal and compliance support

• Complete documentation and end-to-end filing

• Hassle-free and timely service

• Affordable pricing

• Transparent process with professional guidance

📞 Contact kaydababa today to understand your eligibility, prepare the documents, and initiate the LLP Winding Up process smoothly and legally.