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Closure of LLP in India

Planning to wind up your Limited Liability Partnership? Acculex provides end-to-end legal assistance for both Suo Moto closure (strike-off) and formal winding up of LLPs — fully compliant with the LLP Act, 2008.

Overview

Two Ways to Close an LLP

Under the LLP Act, 2008, there are two legally recognized methods to close down a Limited Liability Partnership. Choosing the right method depends on your LLP's current status, liabilities, and operational history.

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Method 1 — Suo Moto Closure (Strike-Off)

This is applicable when the LLP has not been carrying on any business operations for a period of one year or more, or when the partners decide to close it voluntarily by filing an application with the Registrar of Companies (ROC).

The Registrar publishes a notice on its website for one month inviting public objections. If no objections are received, the LLP's name is struck off from the register — effectively dissolving it.

⚡ Faster & more affordable — recommended for inactive LLPs

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Method 2 — Winding Up of LLP

Governed by Sections 63, 64, and 65 of the LLP Act, 2008, winding up is a formal process where all assets of the LLP are disposed of to settle its liabilities, and any surplus is distributed among the partners.

This method is suitable for LLPs with assets, pending liabilities, or those facing legal obligations.

📌 More structured — required for LLPs with outstanding obligations

Winding Up in Detail

Voluntary vs Compulsory Winding Up

The LLP Act provides for two modes of winding up — voluntary (partner-initiated) and compulsory (Tribunal-ordered). Understanding the difference is crucial before proceeding.

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Voluntary Winding Up

Under voluntary winding up, the partners mutually decide to stop and wind up the operations of the LLP. This is the most common and straightforward form of LLP closure when all partners are in agreement.

Key Requirement

A declaration of solvency must be made by the majority of designated partners confirming that the LLP has no outstanding debts or that it will be able to pay its debts in full within a specified period.

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Compulsory Winding Up

A Tribunal (NCLT) may order compulsory winding up of an LLP in any of the following circumstances:

  • The LLP itself decides to be wound up by the Tribunal
  • Number of partners reduced below two for more than 6 months
  • The LLP is unable to pay its debts
  • Acts against sovereignty, integrity of India, or public order
  • Default in filing Statement of Account & Solvency or annual return for 5 consecutive years
  • Tribunal considers it just and equitable to wind up the LLP
Process

How Acculex Handles Your LLP Closure

Our CS/CA experts manage the entire filing process — from form preparation to confirmation of strike-off — so you can focus on what's next.

1

Initial Consultation & Eligibility Check

Our team reviews your LLP's status — financial position, pending filings, liabilities, and operational history — to determine the most appropriate closure method.

2

Clearance of Pending Compliances

All pending annual returns (Form 11), Statements of Account & Solvency (Form 8), and any other pending MCA filings are completed before initiating closure.

3

Preparation of Closure Documents

We prepare the affidavit and indemnity bond by designated partners, consent of all partners, and statement of accounts (not older than 30 days).

4

Filing Form 24 (LLP-24) on MCA Portal

Application for striking off the name of the LLP is filed with the Registrar through Form 24, along with all supporting documents and digital signatures of designated partners.

5

ROC Processing & Publication

The Registrar publishes a notice on the MCA website for one month. If no objections are received within the period, the dissolution process is confirmed.

6

Strike-Off Confirmation

Upon satisfaction of all conditions, the Registrar issues a notice of dissolution and removes the LLP's name from the register. The LLP stands legally dissolved.

Documents Required

What You'll Need

Keep these documents ready to ensure a smooth and fast LLP closure process.

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PAN Card of all Designated Partners

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Aadhaar Card of all Designated Partners

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LLP Incorporation Certificate (LLPIN)

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LLP Agreement (original)

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Statement of Accounts (prepared by CA, not older than 30 days)

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Affidavit by Designated Partners (declaring LLP is not active)

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Indemnity Bond by Designated Partners

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Consent of all Partners to close the LLP

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Bank Account Closure Letter / NIL Bank Balance Proof

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GST Cancellation Certificate (if GST registered)

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Income Tax Return for all years (acknowledgment copies)

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Digital Signature Certificate (DSC) of Designated Partners

FAQ

Frequently Asked Questions

What is the difference between Suo Moto closure and winding up?
Suo Moto closure (via Form 24) is a simpler, faster administrative process for inactive LLPs with no liabilities. Winding up is a formal legal process applicable when the LLP has assets and liabilities that need to be settled before dissolution.
Can an LLP with pending annual returns be closed?
No. Before applying for closure, all pending annual returns (Form 11) and Statements of Account & Solvency (Form 8) must be filed with MCA. Acculex helps you clear all pending compliances before initiating the closure process.
How long does LLP closure take?
The Suo Moto closure process typically takes 3–6 months from the date of filing Form 24, including the one-month public notice period. The timeline may vary depending on ROC processing speed and whether any objections are raised.
What is the government fee for LLP closure?
There is no government fee prescribed for filing Form 24 (LLP strike-off application). However, any pending annual return or Statement of Account filings may attract late fees. Acculex professional fee starts at ₹3,999/- and government fees are charged at actuals.
Does GST registration need to be cancelled before LLP closure?
Yes, if your LLP has a GST registration, it must be cancelled before initiating the LLP closure process. The GST cancellation certificate is required as a supporting document for Form 24 filing.
Can a closed LLP be reactivated?
Once an LLP has been struck off or dissolved, it cannot be reactivated. If the partners wish to conduct business again, they would need to register a new LLP or company. This is why it is important to exhaust all options before proceeding with closure.

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