LLP Winding Up
Easily close a LLP with Expert Help from CBS Stracon
A LLP winding up can be initiated voluntarily or by striking off or by a Tribunal. If a LLP is to initiate winding up voluntarily, then the LLP must pass a resolution to wind up the LLP with approval of at least three-fourths of the total number of Partners. If the LLP has lender's, secured or unsecured, then the approval of the lenders would also be required for winding up of the LLP.
To begin the process for winding up of LLP, a resolution for winding up of LLP must be passed and filed with the Registrar within 30 days of passing of the resolution. On the date of passing of resolution of winding up of LLP, the voluntary winding up shall be deemed to commence.
Reasons to Wind Up LLP
A LLP is a legal entity and a juristic person requiring regular maintenance of compliance throughout its lifecycle. LLP winding up can be used close a LLP that is not active and avoid compliance responsibilities.
The Ministry of Corporate Affairs has simplified the process for liquidation or winding up of LLP through various initiatives. Hence, akin to incorporation, a LLP can be wound up easily with minimal procedural requirement.
A LLP that doesn't file its compliance on time incurs fines and penalty, including debarment of the Partners from starting another LLP or Company.
Easy to Close
The formalities for winding up of a dormant LLP are relatively simple and easy to complete. Hence, its best to close an inactive LLP at the earliest.
A Business Expert reviews the activities of the LLP and determines the documents required for commencing LLP winding up. The review process would be complete in 2 - 3 working days.
The necessary documents are prepared by an Expert for winding up of the LLP. Documents will be prepared by the Expert in 10 - 15 working days, based on the documents and information provided.
LLP winding up documents and application is submitted to begin the process. Throughout the process, the application is tracked and necessary filings are made to wind up affairs of the LLP.