The dissolution of an LLP (Limited Liability Partnership) means officially closing down the partnership so it no longer exists as a legal entity. This involves settling debts, dividing remaining assets among the partners, and filing the necessary paperwork with the authorities to remove the LLP from official records.
Submit to get LLP Dissolution
Protect partners from future liabilities and obligations
Distribution of Assets amoong all the partners
Use the dissolution as an opportunity to start a new venture
Dissolution helps in settling all financial obligations, including debts and liabilities,
Pass the resolution for the dissolution of LLP by designated partner.
Consent of all the partners is to be taken on affidavit
Liquidator appointment for the selling of asset and liabilities.
Close bank accounts
Sell all the assets and the liability
Prepare all the necessary documents for Dissolution of LLP
File E form 24 with ROC
Let's discuss above steps in detail: -
Firstly, conduct a meeting to pass a resolution stating that all the partners agree for the dissolution of LLP and the business operations has been ceased.
Every partner of the LLP shall give an affidavit that all the documents provided is true and correct to the best of my knowledge and also enter into an indemnity bond stating that they will be liable for future obligations.
The LLP shall appoint a liquidator within 30 days from the date of passing the resolution and obtain the liquidation report stating the manner in which winding up is to be carried out and file the report to the registrar.
The LLP shall close all the bank accounts in the name of LLP and obtain a letter from banker stating that all the bank accounts in the name of LLP has been duly closed.
Statement of Account and Solvency shall be filed with registrar in Form LLP-8 which shall be verified by a chartered accountant.
The LLP shall file the e-Form 24 to the ROC along with documents mentioned above.
If it deems fit to the registrar, he will publish the notice of such winding up/strike off of an LLP in its Official Gazette stating dissolution of the LLP.
If they didn't receive any objection within 30 days, then the registrar will dissolve or strike off an LLP from the official records.
Time taken
It will take approximate 1 month to complete all the process if everything is proper and client provide document on time and else depends on ROC.
Note: -“Dissolution of LLP may be done either voluntarily or by Tribunal's Order”
How to Dissolve LLP?
Close All Liabilities: Ensure all dues, loans, and liabilities of the LLP are cleared before initiating the dissolution process.
Consent of Partners: Obtain consent from all partners to dissolve the LLP through a resolution.
File Form 24: Submit Form 24 to the Registrar of Companies (ROC) along with required documents.
Affidavits & Indemnity Bond: Partners must provide affidavits and indemnity bonds stating no liabilities exist.
Public Notice & ROC Approval: After verification, ROC issues a public notice and dissolves the LLP officially.
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Eligibility
Submit and ensure that all the annual compliances of LLP are completed like form 8 & 11.
Ensure that ITR has been filed of the previous year in which business cease to exist.
Make sure there have been no business transactions in the past year.
Sell all assets and pay off all debts before applying for dissolution.
Close all the LLP's bank accounts.
Ensure the original LLP Agreement has been filed with the Registrar of Companies (ROC).
Documents Required for LLP Dissolution
Documents required for the LLP Dissolution
Indemnity Bond by all the partners.
ITR acknowledgement of LLP.
Latest LLP annual filling form i.e., Form 8 and Form 11.
Audited Financial Statement till the date of dissolution
Bank Closure Certificate
Affidavit from all the partners declaring regarding dissolution.
Authorization letter for striking of LLP
All the resolutions passed for the dissolution process.
Statement of accounts disclosing NIL balance after selling and adjusting of all the assets and liabilities for that certificate should be taken from a practicing CA
NOC from the creditors if they are also available after all settlement.
Benefits Of Getting Llp Dissolution
Dissolving an LLP can protect partners from future liabilities and obligations, especially if the business is no longer viable.
The assets of the LLP can be distributed among the partners according to their share in the partnership.
Dissolution helps in settling all financial obligations, including debts and liabilities, ensuring that all creditors are paid off.
Partners can use the dissolution as an opportunity to start a new venture or pursue other interests without the baggage of the previous LLP.
