Voluntary winding up happens when the partners decide amongst themselves to discontinue and close the LLP. It’s necessary to wind up LLP as per the provisions of Limited Liability Partnership Act.
Contact our experts to understand the process of winding up.
A Limited Liability Partnership (LLP) is the business type where the liability of the partner is limited. LLP is a separate legal existence different from its partner and so it enjoys perpetual succession. Each partner is protected from their liability; also protected by the joint liability created by the other partner’s wrong business decision or misconduct. LLP Registration is covered under the Limited Liability Partnership Act, 2008 & a separate LLP agreement has to be filed. LLP shall be registered with the ROC.
An LLP winding up can be started by choice or by a Board. If a LLP is to initiate winding up by choice, then the LLP must pass a resolution with approval of at least 3/4th of the total number of partners. If the LLP has creditors, secured or unsecured, then the consent of the creditors would also be required.
Yes, the LLP can wind up if it is inactive from the date of incorporation for at least one year immediately preceding the filing of the application.
LLP must pass a resolution with approval of at least 3/4th of the total number of partners for voluntary winding up.
- Voluntary winding up.
- Mandatory winding up.
Winding up of LLP takes approximately 14-20 days.
Secretarial & Compliance
Income / Corporate Tax
GST / CESS