Closure of LLP
Closure of LLP or LLP Wind up process require surrender of various other statutory registration such as PAN, TAN, GST, PF or any other statutory registration taken by the LLP.
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- The LLP unable to commence business after incorporation, there might be situation that the LLP is incorporated for a business but after incorporation the business might not got started, then eventually it leads to closure of LLP after some significant time period say one year.
- The objective for which the LLP is incorporated is fulfilled and there is nothing left to operate the LLP. There are certain LLP which got incorporated for the purpose of specific task or objective, after fulfilment of such task or objective the LLP need to be closed.
- The business of the LLP no longer exist and it incur losses, there might be circumstances wherein the LLP was successfully operating but after some years its business doesn’t exist and the LLP incur losses, thus such LLPs may got closed.
- The partners / management of the LLP dies and remaining partner doesn’t want to continue the LLP.
- The LLP become insolvent and unable to pay to its debt, in such cases there are circumstances for compulsory winding up of LLPs by the tribunal.
- Non compliance lead to monetary penalty in terms of late filing fees and also leads to certain severe consequences such as Inactive status of LLP, strike off of defunct LLPs by the registrar etc. Such situation may leads to closure of LLP
- The LLP has operated in the manner which is against the interest of sovereignty and integrity of India, security of state, friendly relation with foreign state etc.
- The LLP activity was conducted in fraudulent manner and the statement of affairs has been guilty of fraud, misfeasance or any misconduct then such circumstances leads to closure of LLP.
- Voluntary closure of LLP: In this case the LLP passes a resolution for winding up of LLP in a properly convened meeting of members / partners.
- Winding up of LLP by order of Court: In this case any competent court or tribunal has ordered for winding up of LLP due to reasons recorded in writing and mentioned in the order of winding up of LLP.