Closure of LLP
Nothing is constant in this dynamic world. Many a timesituation arises, when to carry the business of Limited Liability Partnership is not feasible or it had not commenced its operations since incorporation,in such a situation it is better to wind up LLPas many statutory compliances are to be complied annually adding financial bu on the LLP and non-compliance of the same would attract heavy fine and penalties. An LLP can be closed by two ways:
- Voluntary Winding up: where partners mutually decide to dissolve the LLP
- Compulsory winding up: there may be some cases where the LLP can be closed by tribunal only e.g. LLP fails to pay off its debts, partners falls below two and it continues to work for more than six month, non filling of annual forms etc.
