LLP Closure Online | Fast Track Exit (FTE) Closure of LLP | Form 24


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Close a LLP

In India, every year more than tens of thousand of LLPs get registered and majority of them do not even start their business. The Founders of these LLPs go back to their jobs or get aside leaving the business as it is.

Did you know? It may cause you (as Designated Partners) troubles from the Regulatory Department like Income Tax, Registrar of Companies and others. Yes, you read it right. It is a prudent idea to close down the LLP to get relief from litigation and at the same time saving your DPIN getting disqualified.

We at Compliance Ease Cure LLP have a team of Experts who can help you close your LLP hassle free. You just have to share your LLP details, assist us in complying with the Fast Track Exit Scheme for closure of LLP and leave the rest on us. We have helped plenty of LLPs in successful closure like yours.

We can be reached at info@complianceease.in or +91-9773646999 on Call/WhatsApp.

Fast Track Exit (FTE) can be done in two ways:

A Limited Liability Partnership is created by law; therefore, it can be closed under the guidelines framed under statute only.

As per the section 37 of the Limited Liability Partnership Act, 2008 and the rules framed thereunder, a LLP which has been non-operational for more than 1 year and has no business can apply for closure subject to the conditions that its annual returns are filed with the Registrar of Companies along with the ITR.

Documents Required for Close a LLP

  • iconAn Indemnity Bond towards any liability which may arise even after striking off the name.
  • iconStatement of Account duly certified by a chartered Accountant in practice or auditor of the LLP.
  • iconBoard Resolution showing authorization for filing the form.
  • iconA Declaration that the LLP has not filed any Income Tax return where it has not carried on any business since its incorporation, if applicable.
  • iconA copy of the acknowledgment of the Latest Income-tax return filed under the Income-tax Act, 1961.
  • iconDigital Signature Certificate (DSC) of Designated Partners to file Form 24; and
  • iconAny other documents as may be required by the concerned ROC.

Legal Procedure of Close a LLP

Any LLP desirous to get its name struck off from the register shall file an application in the prescribed form with the ROC with the below procedures:

  • iconLLP should have Nil Assets and Liabilities and indemnifying any liability that may arise even after striking off its name from the register.
  • iconLLP is required to file form 24 with ROC.
  • iconFee for filing for FTE is INR 500/-
  • iconLLP is required file overdue returns in Form 8 and Form 11 up to the end of the financial year in which the LLP ceased to carry on its business or commercial operations before filing Form 24.
  • iconThe concerned ROC may ask for some additional information/clarifications depending on the case to case basis.

Features & Benefits of Close a LLP

  • iconFaster Route: The best feature of LLP closure under FTE Scheme is that you need not comply with the lengthy winding-up procedure which is not only time taking procedure but also cost much more than what it costs in FTE Scheme which ultimately helps you save every year compliance cost.
  • iconNo Record Keeping: Once your LLP gets closed and the name of your LLP is removed from the register from ROC, you need not keep any records and documents year on year basis.
  • iconNo more Default: You save your DPIN and later on you can join any other Company/LLP and also incorporate other Companies/LLPs if your DIN/DPIN is not in default due to non-filing in other Companies/LLPs.
  • iconSave from Income Tax: If you do not close your LLP properly, the Income Tax Department can send you notice for not filing returns or may even come up with unnecessary IT demands.
  • iconPeace of mind: You live worrying less as your mind would be productive. It is always wiser to shut down something which starts becoming liabilities for you and disturb your peace of mind and health.