LLP Closure

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Close LLP Business

LLP may close down its business when it is not feasible to carry on the business or LLP has not commenced its operations since its incorporation. It is better to close down LLP as there are no. of statutory compliances to be complied with which keeps on adding compliance burden on the LLP which is not carrying on business and is intending to close down, further non-compliance will attract hefty fine and penalties. There are two modes of striking off LLP:

Mandatory Strike off- by Registrar of Companies (Roc)

When the Registrar finds that LLP is not carrying on any business or operations from the past 2 years or more, then it can send notice to LLP and all the partners for striking off LLP and the partners will be given a time of one month to file their representations, if any.

Voluntary Strike off- by Partners of LLP

Where Partners of the LLP mutually decide to close the LLP or LLP is not functioning from past one year or more and wants to close down its business then the LLP can apply to Concerned Roc for declaring that LLP as defunct and to remove its name from Register of LLP’s.

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