What are the Documents Required for Closing a LLP?

What are the documents required for Closing a LLP?



Limited Liability Partnership (LLP) is a usual partnership form in which each partner has limited liabilities. An LLP is a firm under which certain legal terms and documents take place. There is a pre-defined process as to how one can register or close his/ her LLP. There are some merits to being in an LLP, but at the same time, there are a few demerits as well.
Depending on the Registrar’s office, the whole process may take 3 to 6 months to complete. After approval of the application, the details will be placed on the website of the Ministry of Corporate Affairs for the information of the general public for a period of one month.
On multiple occasions where people don’t even know how to register an LLP company, but, most of them do not have any idea that there is a strict process as to how an LLP is to be closed, in India.

7 Major Steps to Close an LLP in India

  1. documents Step 1 – Pass a Resolution
  2. Step 2 – Form 1 Filings
  3. Step 3 – Declaration of the Debt
  4. Step 4 – Form 4 & Value of the Assets
  5. Step 5 – Obtain consent from the Creditors
  6. Step 6 – Filings and Appointment of Liquidator
  7. Step 7 – Finalization of the Accounts of LLP

Requirements & Documents To Close An LLP

To close an LLP you have to apply with the consent of partners and creditors, indemnity bond, statement of assets and liabilities, acknowledgment of ITR, resolution, and other documents.

  • The LLP must not have executed its business or commercial operations for the span of one year or more.
  • A statement of account showing zero assets and liabilities made to date not earlier than thirty days of the date of filing certified by a Chartered Accountant should be provided.
  • The LLP must not own any liabilities and assets.
  • The LLP must not own an active Bank Account. In case the Bank account was opened, the account must be closed and a statement or certificate from the bank saying the closure of the Bank Account to be provided.
  • All the Partners should have consent to apply.
  • All Designated partners must have to execute a statement of fact, and Indemnity Bond agreeing to indemnify any liability that may arise after the name has been stroked out from the Registrar.
  • Copy of the last Income-tax return filed by the LLP, if the LLP is maintaining any business and has filed some returns.
  • The confirmation letter that the LLP has no liability or payment due to all the creditors.
  • IT returns for the last Financial Year are filed without any due.
  • The PAN card copies of all the designated partners.
  • Aadhar proof ( scanned copy) of all the partners and designated Partners.
  • The copy of the LLP agreement; if available or the date of becoming a Partner
  • The permanent address of all the designated partners and partners.

Procedure To Wind Up An LLP

In case the LLP wants to close down its business or where it is not carrying on any business operations for the period of one year or more, it can make an application to the Registrar for declaring the LLP as defunct and removing the name of the LLP from its register of LLPs. If a limited liability partnership does not start with its business operations or continue its business for a certain period, it becomes dormant in the eyes of law, and its name is struck off from the register. An LLP gets dissolved in the following circumstances: Death or Bankruptcy of one or more partners. By Order of Court / compulsory judicial decision. Expiry of the term.


In The Winding-up or Dissolution process of the LLP, The default penalty for LLP’s defaulting in any statutory filing return is Rs.100 per day; not restricted to any maximum limit. So, it is the best option to windup dormant LLP as such there is nil requirement to file LLP Form 11 or LLP Form 8, and Income Tax Return filing for the LLP every financial year to maintain compliance and to avoid unnecessary penalties.
Previously to the introduction of the Limited Liability Partnership (Amendment) Rules in 2017, the procedure to wind up an LLP used to be long and troublesome. But, with the introduction of LLP Form 24, the procedure has been made easy and simpler.
So, it is advisable for the Entrepreneurs having dormant or defaulting LLPs that are gaining penalties to make use of this opportunity to close the LLP.



Created & Posted by Garima
Article Assistant  at TAXAJ

TAXAJ is a consortium of CA, CS, Advocates & Professionals from specific fields to provide you a One Stop Solution for all your Business, Financial, Taxation & Legal Matters under One Roof. Some of them are: Launch Your Start-Up Company/Business, Trademark & Brand Registration, Digital Marketing, E-Stamp Paper Online, Closure of Business, Legal Services, Payroll Services, etc. For any further queries related to this or anything else visit TAXAJ

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