Closing of LLP in India: Steps and Procedure

 Process of closing an LLP in India 

The Limited Liability Partnership (LLP) is a modern type of business entity, established in 2008 by the Limited Liability Partnership Act, that combines the features of a company and a partnership. In previous articles, we discussed the documents required for LLP registration and the registration process itself. 

In this article, we will guide you through the process of closing an LLP in India.


Although LLPs offer several advantages over other types of business entities, such as ease of incorporation and limited liability for members, these benefits do not necessarily translate into successful business operations. This article will explain the Strike Off method of closure and provide an overview of other closure options.


The process to close a Limited Liability Partnership

An LLP can be closed in two ways:


1. Strike-off method-

a. Voluntary Strike Off

  • The LLP should not have been engaged in commercial activities for a period of at least one year.
  • The LLP must file an application in Form 24 LLP with the Registrar of LLPs to apply for voluntary strike-off status.
  • The LLP should have fulfilled all compliance requirements until the date of filing for closure. However, it is only necessary to file annual returns until the end of the year in which the commercial activities ceased.
  • The LLP must have obtained the consent of all parties involved, including members, creditors, and any regulatory authorities under whose domain the LLP operates.
  • The LLP should not have any assets or liabilities as of the date of preparation of financial statements.

The process to close LLP through Strike Off method

In order to proceed with the Strike Off process, the LLP must follow the steps outlined below:

  • The LLP must schedule a meeting of all partners to pass a resolution to strike off the name.
  • The LLP must settle all outstanding debts and liabilities before proceeding with the Strike Off process.
  • The meeting of partners must authorize a designated partner to file the application for Strike Off.
  • The designated partner must file an application in e-Form 24 and submit it to the Registrar. The application must have the consent of all members.

Read more to know about the Procedure of Closing LLP in India


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