Close LLP in India

1. Voluntary winding up
2. Striking off
3. Winding up by tribunal

LLP can be wind up after the order from the tribunal court. It is also known as compulsory wind up. The court may appoint an official liquidator to wind up the affairs of their business. In case no liquidator is appointed by the court, official receiver will be the LLP liquidator. The liquidator will file the necessary notifications under the LLP act.

• Resolution & affidavits – In the first step, LLP has to take the consent of other partners before starting the wind up process. Meeting with the partners are conducted and proposal of voluntarily winding up of LLP is kept in front of other partners for consideration along with affidavits.
• Appointment of LLP liquidator – In the second step, LLP liquidator must be appointed within 30 days of passing of resolution in the process of voluntarily winding up the LLP. In case LLP has creditors, they have to take approval from 2/3rd of the creditors in the meeting unless the appointment of LLP liquidator will not be considered valid.
  LLP liquidator performs many functions and duties in winding up LLP. LLP liquidator controls the business affairs, settle the creditors and adjust the rights of the partners. He is required to maintain proper books of accounts in relation to winding up of LLP.
• Submission of wind up report by LLP liquidator – After fully wounding up the affairs of LLP, LLP liquidator prepares a report stating the manner in which procedure of winding up has been conducted and property has been disposed off. Prepared report is checked and if 2/3rd of the partners and creditors found it satisfactory, resolution for winding up of accounts and explanation for dissolution must be passed by the partners.
  After passing of resolution, LLP liquidators sends the windup report along with the passed resolution to the registrar and file the application with the tribunal.
• Dissolution of LLP – In the fourth step, if tribunal is satisfied with the procedure followed by the LLP in winding up its operations. Tribunal will pass the order that LLP has been dissolved. LLP liquidator also required to file the order copy from the tribunal to the registrar for winding up the LLP. After receiving the order copy passed by the tribunal, the registrar publishes a notice in the office gazette and declared the same as dissolved.