Overview

• LLPs who have not been in the lead on any business plan since incorporating or ending the profession for one year or can apply including ROC to strike in the name of LLP. There may be several reasons for the closure of an LLP, which can vary from 'voluntary termination' to 'compulsory termination'.
• The Ministry of Corporate Affairs launched LLP Form 24 through a change in the Limited Liability Partnership Rules, 2009. Nevertheless, the appeal to discontinue LLP is directed towards specific criteria. Limited Liability Partnership (LLP) is a common business form in which restricts per-peer responsibilities. There is an LLP firm that supports specific legal sessions and documents. There is a pre-defined way how one can designate or discontinue their LLP. Being in LLP has some benefits, but also some demerits.
• There are many occasions where people do not even know how to register a LLP company, but, most of them are not aware that there is a strict method as to how to discontinue LLP. In this blog, you will clear up such misconceptions, and we have explained the detailed process and the documentation required to close an LLP registered firm in India.

Benefits

Eligibility

• LLP has not been on business since inception or for a year or more.
• Form 8 delayed the return and Form 11 ended by the end of the financial year, with limited liability partnerships to terminate its affairs.
• No bank account has been demarcated since closing with certificate.
• LLP has no liability or payment due to any lenders.
• IT returns are filed for the immediate financial year.

Detailed process

• Penalty of failure to defer LLP in any accepted filing return is Rs. 100 per day; Not limited to any ceiling. Therefore, as stated in advance to Dormant LLP, this is the most desirable option, with zero liability for filing 'LLP Form 11' or 'LLP Form 8', and filing of income tax returns every financial year for LLP, To maintain agreement and avoid unnecessary penalties.
• Prior to the announcement of the Limited Liability Partnership (Amendment) Rules in 2017, plans to abolish LLPs used to be long and complex. But, with the introduction of LLP Form 24, the method has been made easier and more straightforward. Therefore, it is desirable for the Entrepreneur to deactivate or default the LLP to receive a penalty for using this opportunity to close the LLP.
• Filing of LLP Form 24

  The following system will be followed in India for sealing LLP by filing Form 24:

• Commercial Activity – Cease

  LLP Form 24 is to be submitted only by the LLP, which has never started a business or terminated any business venture. Therefore, if the LLP is operational until the operations or promoters are required to close the LLP, the LLP should basically close its business ventures.

• Close a bank account

  LLP Form 24 should be listed only by those LLPs who have zero creditor and zero open bank account. Consequently, prior to the introduction of LLP Form 24, any such bank account initiated in the name of LLP should be closed and a termination expiry letter of the bank account in the title of LLP should be obtained from the bank.

• Testimonies & Declaration Preparation

  All designated partners of LLP must basically execute the facts of the communication together or independently, so that the limited liability partnership ceases to carry on the commercial project from the date or business does not commence. To complement this, LLP Partners must retain LLP as it has no responsibility, even after striking LLP in the name of the register. Partner liability will not be investigated even after the completion of the LLP; Preparing Form LLP24.

• Produce certificate

  Income tax returns of LLP and LLP deed must be offered, including Form LLP24. In the case, the LLP has not filed an income tax return, and it has not processed any business activity, then the income tax return statement process will not be required. Alternatively, an acknowledgment copy of the last filed income tax return may be attached with an appeal to seal the LLP.

• List of all pending records

  After LLP incorporation, agreement must be reached with the respective MCA within thirty days of enrollment. In any unavoidable circumstances, this politeness erred to be filed with the LLP agreement. After that, the first LLP agreement; Whether it is inserted and not filed, all amendments together must be duly registered.

  For this, any delayed withdrawal in Form 8 and Form 11 at the end of the combined financial year in which Limited Liability Partnership (LLP) has ceased should take over the operation or business of your business or by filing LLP Form 24 Have been.

  The stagnation date of commercial operations is the date from which the Limited Liability Partnership (LLP) has to pursue its money-making business. And transactions such as cash receipts from pupils that owe creditors their debt or money will not be part of a revenue-generating business after those expiration.

• Obtain Chartered Accountant Certificate

  Once the necessary documents for filing LLP Form 24 are prepared, an account statement disclosing zero assets and zero liabilities, which is approved by the Chartered Accountant, until the date of the Form 24 filing period A date not earlier than 30 days must be obtained.

• File LLP Form 24

  All mentioned documents with LLP Form 24 (download- LLP Form 24) must then be filed with MCA to remove LLP's name. While processing the application; If found to be acceptable, the Registrar of the company concerned will send a detailed notice to be published on the MCA website announcing the removal of the LLP's name.

Required Documents

• LLP will not have performed its profession or professional services for a year or more.
• A record of distributing zero assets and liabilities will be provided until a period of thirty days after the filing date approved by a Chartered Accountant is advanced.
• LLP does not require any responsibilities and assets.
• LLP is not required to have an existing bank account. If the bank account is freed, the statement should be closed, and a comment or certificate from the bank announcing the closure of the bank account to be enforced.
• All partners must have their own consent for implementation.
• All appointed partners must provide a statement of fact, and the indemnity bond must be allowed to repay any liability that appears after the registrar's name is marked.
• Proof of previous income tax return filed by LLP, if LLP is managing any business and has filed some returns
• LLP does not have acceptance letter or liability due to all lenders.
• IT Returns for the current financial year have been filed externally for any reason.
• PAN card photos of all the designated partners
• Aadhaar proof of all partners
• The copy of LLP agreement; 
• The permanent address of all the members and partners

Closing: By declaring LLP deficiency

An appeal must be made declaring that the LLP is not in working condition or is impure and refers to the registrar. EForm 24 is required for filing under section 37 (1) (b), and all the necessary documents as stated in the form are also a necessary condition for which one is presenting it. After the servility, the name of the LLP is struck off from the LLP’s register.

• LLP is curved up

  The termination of LLP is governed by the LLP Act 2008, which attracts provisions such as sections 63, 64 and 65.

  Winding-up process has two grades. They are -

  1) curved

  2) Disintegration.

• Voluntary Termination

  Voluntary termination occurs when partners choose among themselves to suspend and discontinue the LLP. LLP may optionally wound by passing a presentation with the consent of at least 3 / 4th of the total number of partners. A model of decision must be lodged with the registrar within 30 days of transferring the resolution to Form 1. Subsequently, with this, a model of command should be given to someone who takes care of the process of winding up.

• Curved with creditors

  In Form 2 distribution an advertisement must be made by the majority of the partners that they have no payment or that they will repay their loan within a certain period (the period fixed by the partners). But it should not be more than one year from the date of passage of the recommendation for termination.

• Declaration to complete the resolution

  After the passage of the decision to seek and obtain consent from creditors for termination, then within 14 days, the LLP must give notice of the decision by advertisement in a newspaper. It must be broadcast in the area where the office is registered, or the LLP's main office is located.

• Appointment of LLP Liquidator

  Through the resolution, with the support of the majority of partners, the LLP is equipped with the voluntary liquidator prescribed remuneration as the liquidator. The liquidator will be selected only after approval of 2 / 3rds of LLP's value.

  If creditors are required, they have the option to choose an LLP liquidator. In case of immediate assignment by creditors and partners, the LLP liquidator selected by the creditors will come into continuity. If none of the liquidators is acting, the Tribunal will select an LLP liquidator.

• Disruption

  The moments of the closing of the LLP are wound-ups, when the liabilities have been discharged, and the assets have been liquidated, the details will be worked out by the LLP liquidator. In Form 9 it must be declared how the winding took place? The property has been handled with all the detailed details including final closing of accounts and disposal of assets. Subsequently, the support of partners and creditors is sought for dissolution. Finally it can be concluded by saying that closing LLP is preferably a two-way process, one is when one wants to shut it down and decide to do it and on the other hand when circumstances become one.

  Latest: LLP Settlement Plan, 2020, MCA LLP Form Expected to Delay Once

• Protecting the Doing Market

  Providing ease of doing business is regularly on the Government of India list. And to this determination, the government has tried to introduce new projects from time to time to encourage business proprietors to stick to the business. To take this step forward, the Ministry of Corporate Affairs (MCA) has launched a lump sum amnesty scheme for Limited Liability Partnership (LLP) businesses, which fail to file the necessary statutory documents such as annual statements, transfer to directors, etc. Have been.

  The movement will not only promote the efficiency of doing business but also will cleanse the system. It presents these companies with a one-time amusement in payment of additional fees and protection from prosecution. Consequently, the Central Government has decided to precede a scheme namely “LLP Settlement Scheme 2020”, by allowing a One-time condonation of delay statutory filling.

LLP Settlement Scheme

• Form 3

  Relating to limited liability partnership agreement and information related to it, if any.

• Form 4

  Notice of assignment, demonetisation, change of name / address / designation of designated partner or partner and consent to become partner / designated partner.

• LLP Form 8

  Statement of Account & Solvency (Annual or Interim).

• LLP Form 11

  Annual Return of Limited Liability Partnership (LLP).

Essential Features

• Time Limit

  The Scheme will be in force from 16-03-2020 to 13-06-2020.

• One time Scheme

  It would permit a “one-time condonation of delay in Late filing statutorily required documents of LLP” with the Registrar of Companies.

• Additional charge

  The respective LLP has to pay a nominal additional fee of Rs 10 per day for the period of delay as well as any actual cost paid for document submission. The additional charge per document will be capped at Rs 5,000.

• Usability

  This scheme is applicable for defaulting LLP which have not filed returns which was due for filing by 31 October 2019.

• Deadline for sawdust

  Default LLPs, who have submitted their pending documents until 13 June 2020 and corrected the default, will not be subject to prosecution by the Registrar for such defaults.

• Non-applicability to discontinue LLP

  This scheme will not be applicable to LLPs, who have applied to the Registrar in Form 24, to grab his / her name from the register as per the provisions of Rule 37 (1) of LLP Rules, 2009.

• Plan conclusion

  Upon expiry of the scheme, the Registrar will take necessary action under the LLP Act, 2008 against the LLP who have not availed the scheme and default in filing the documents as required under the provisions of the LLP Act, 2008 Huh. .