Winding Up of LLPs
Close your Limited Liability Partnership through the applicable legal process, with guidance on compliance, liability settlement and dissolution formalities.
Closing Your LLP with Clarity and Compliance
Winding up an LLP involves more than discontinuing business operations. It requires dealing with assets, settling liabilities and completing the applicable legal formalities before dissolution.
What Is Winding Up of an LLP?
It is the legal process of closing a Limited Liability Partnership, addressing its financial obligations and completing the requirements for dissolution.
When Can an LLP Be Closed?
The appropriate closure route depends on the LLP's circumstances and the applicable legal requirements.
Partners' Decision
Partners may decide to discontinue the LLP and initiate the applicable closure process after completing the required approvals.
Legal Circumstances
An LLP may be wound up in circumstances prescribed under the Limited Liability Partnership Act, 2008 and other applicable laws.
Eligible for Strike-Off
An LLP that has ceased business may be eligible for strike-off if it satisfies the prescribed conditions and filing requirements.
LLP Winding Up Process
A structured overview of the key stages involved in closing an LLP, subject to the applicable closure route.
Review the LLP's Status
Review the LLP's business activities, assets, liabilities, pending obligations and eligibility for the appropriate closure route.
Obtain Required Consent and Approvals
Complete the necessary partner consent, resolutions and other approvals wherever required under the applicable procedure.
Settle Assets and Liabilities
Deal with the LLP's assets and settle its outstanding liabilities according to the applicable legal priorities.
Complete Filings and Formalities
Prepare and submit the required documents and statutory filings applicable to the chosen winding-up or strike-off route.
Dissolution or Strike-Off
Complete the relevant legal process so that the LLP is formally dissolved or struck off, as applicable to the route followed.
Proper Settlement of Assets and Liabilities
The LLP's financial matters must be addressed as part of the applicable closure procedure. Assets are used to settle liabilities in accordance with legal priorities.
- Review and account for LLP assets
- Identify and settle outstanding liabilities
- Address remaining surplus, where applicable
- Follow the LLP agreement and applicable law
Financial Closure
Key areas to address during the process
Winding Up vs Strike-Off
Both are closure-related routes, but their requirements and suitability may differ.
Winding Up
A legal process for dealing with the LLP's affairs, including assets and liabilities, followed by dissolution under the applicable procedure.
Strike-Off
A separate route that may be available to an LLP that has ceased business and meets the prescribed eligibility and filing conditions.
The appropriate route should be determined after reviewing the LLP's circumstances and the applicable legal requirements.
Take the Right Steps Towards LLP Closure
Get guidance on the applicable closure route, documentation and statutory formalities for your LLP.
- Closure route guidance
- Financial settlement
- Form 24 filing