Menu Close

What are the procedures for winding up an LLP?

llp registration in bangalore

LLP incorporation in Bangalore has emerged as a hybrid form of entity with company features and partnerships. A separate law has been frame for the operation and management of LLPs. Limited Liability Partnership Act, 2008 and rules under it. There are numerous LLPs that were include but no one did business or stopped doing business. To reduce the number of business units, it is important to provide simplification in the finishing process. There are two ways to terminate LLP incorporation in Bangalore: voluntary winding and mandatory winding (by the tribunal).

If partners want to end the LLP process they need to end voluntarily. It is worth noting here that in the case of termination of LLP, the procedure for operating the LLP and winding up for de-functioning is different. The process for creating a working LLP is lay down in the Limited Liability Partnership (Winding and Dissolution) Rules, 2010 and in the Rules of Limited Liability Partnership (Amendment) for fail LLPs, the Ministry specifically instruct in 2001 to relax the proceedings. Those LLPs that are not doing business are destroy.

LLP registration in  Bangalore

Documents required for winding up an LLP:

Close all commercial operations (the end of commercial operations means that LLP ceases to operate its revenue generating business and transactions such as receipt of money from debtors or payment of money to creditors will not be part of LLP’s revenue generating business after termination).

 LLP get a close bank account (s) open in the name of and a letter from the bank for proof of closure.

All creditors need to pay.

 If the LLP agreement is not file with the MCA, it needs to be file with the amendments made so far.

By the end of the financial year, Form-8 and Form-11 in which the LLP has stopped doing business must be file before Form-24.

 All assets need to be dispose of in order to pay the LLP arrears, if any additional assets are distribute among the partners.

llp registration in bangalore

LLP winding up overview

LLP registration in Bangalore termination can be initiated voluntarily or by a tribunal. If the LLP is to begin terminating voluntarily, the LLP must  share the resolution to eliminate the LLP with the approval of at least three-fourths of the total number of partners. If the LLP has a lender, secure or unsecured, then the lender’s approval is also required to terminate the LLP.

Termination of LLP by the tribunal

Proceedings to terminate the LLP can be initiate by the tribunal for the following reasons:

LLP wants to be injure.

The LLP has less than two partners for a period of more than 6 months.

LLP is not in a position to repay its debts.

The LLP has acted against the interests of India’s sovereignty and integrity, state security or public order.

The LLP has not filed with the Registrar Statement of Accounts and Sanctions or LLP Annual Returns for five consecutive financial years.

The tribunal is of the opinion that the LLP should be wounded is just and fair.

incorporation in bangalore

Winding up of LLP incorporation in Bangalore proceedings

To begin the process of terminating an LLP, a resolution to terminate the LLP must be passed and entered into the Registrar within 30 days of the passing of the resolution. On the date of approval of the LLP’s winding resolution, voluntary termination shall be deem to have commence.

Once the registrar has a resolution to terminate the LLP, the majority of partners (not less than two) will declare, verified by an affidavit, that there is no debt on the LLP or that it will be in that position. To pay its debts in full within a period as stated in the declaration, but not more than one year from the date of commencement of LLP expiration. With the affidavit sign by the majority of the partners, within 15 days of the passing of the resolution to terminate the LLP, the following documents must be submit to the Registrar:

Statement of assets and liabilities for the period from the closing of the last accounts to the closing date of the LLP certified by at least two partners, if there is any asset in the LLP, the valuation report of the LLP prepared by a value

Termination of LLP with creditors

If the LLP incorporation in Bangalore has any secured or unsecured creditors under winding, then before taking any action to terminate the LLP, permission to terminate the LLP must be requested from the creditors. Creditors are require to give their opinion on terminating the LLP within 30 days of receiving the request for approval for winding. If it is in the interest of all partners and all creditors that the LLP is wound up, the LLP can go ahead with the voluntary termination process.

Appointment of LLP Liquidator

The LLP Liquidator must be select within thirty days of the passing of the resolution of voluntary elimination by resolution. If there are creditors, the appointment of an LLP liquidator will be valid only if it is approve by two-thirds of the value of the LLP by the creditors.

It is then the duty of the LLP incorporation in Bangalore liquidator to perform the functions and duties for terminating the LLP. The LLP liquidator will settle the creditors and regulate the rights of the partners, as the case may be. While discharging its duties, the LLP Liquidator is require to maintain proper books of accounts related to terminating the LLP.

wind up in bangalore
File a winding up report through an LLP liquidator

Once the LLP’s affairs are fully wound up, the LLP incorporation liquidator will prepare a report stating how the LLP has been wind up and the LLP’s assets dispose of. If two-thirds of the number of partners and creditors in value are satisfy with the closing report prepare by the LLP liquidator, then the resolution for disclosure and termination must be passed by the partners.

The LLP incorporation in Bangalore Liquidator must send the LLP Winding Report with the resolution to the incorporation and apply to the Tribunal.

Dissolution of LLP

If the tribunal is satisfy that the procedure for terminating the LLP incorporation in Bangalore has been follow, then the tribunal will order that the LLP be dissolved. LLP Liquidator is an LLP liquidator. The registrar must file a copy of the order with the tribunal for termination. The Registrar of Obtaining a copy of the order passed by the Tribunal to terminate the LLP will publish a notice in the Official Gazette that the LLP has been dissolved.