Running a business comes with its own challenges. Sometimes when things do not work out, a business may have to be shut down. Any company registered in India under the Companies Act, which did an unlawful act, fraudulent act or even if they contributed any action in some fraudulent or unlawful activities then such company would be wound up compulsorily by the Tribunal.
In this, you have to make an application stating that your LLP is no more functional or simply is defunct and submit it to the Registrar. e form 24 is required to be filed under Section 37(1)(b) and all the documents stated in the form is also a major requirement for which you submit it and name of your LLP thus are struck off from the LLP’s register.
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. Sujata associates can help you wind up your LLP quickly and easily.
The Ministry of Corporate Affairs has recently amended Limited Liability Partnership Rules, 2009 by introducing the Limited Liability Partnership (Amendment) Rules, 2017 with effect from 20th May, 2017. With this amendment, LLP Form 24 has been introduced by the MCA and it is now possible to easily close a LLP by making an application to the Registrar for striking off name of LLP. Before the introduction of the Limited Liability Partnership (Amendment) Rules, 2017, the procedure for winding up a LLP used to be long and cumbersome. However, with the introduction of LLP Form 24, the procedure has been made easy and simple.
1. A creditor who is owed an amount by the LLP exceeding Rs.1 Lakh and demands payment of his dues and then is not paid or he has not been provided with adequate security or his debt is not restructured or compounded to his reasonable satisfaction within 21 days of receipt of the demand; or 2.Any decree or order of any Court or Tribunal in favor of a creditor of the LLP is not complied with wholly or partly; or 3. If it is proved to the satisfaction of the Tribunal, taking into account the LLPs contingent and prospective debts, that the LLP is unable to pay its debts.
Penalties will be charged if a LLP company does not file its compliance on time,including debarment of the Partners from starting another LLP or Company.
If compliance is not maintained every year on estimated time, it could potentially acquire more penalty. Sujata Associates offer you llp winding up at best rates.
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.
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.