There are two methods to close an LLP business:
Declaring the LLP as Defunct
In case the LLP wants to close down its business or where it is not carrying on any business operations, it can make an application to the Registrar of Companies for declaring the company as defunct and removing the name of the LLP from its register of LLP’s.
Declaring the LLP as defunct is much easier process to close down the LLP as compared to wounding up because it does not involves high formalities and due to simplified procedure, the time consumed is comparatively very less.
Winding up is process, where all the assets of the business are disposed off to meet the liabilities of the same and surplus any, is distributed among the owners. The LLP Act 2008 provides for following two modes for winding up the LLP i.e.:
Voluntary Winding up: Under this, the partners may between themselves decide to stop and wound up the operations of the LLP.
Compulsory Winding up: A limited liability partnership may be compulsorily wound up by the Tribunal,—
Our team of highly qualified professionals at Ask4compliance.com can help your business in Closure/Winding Up of LLP by completing the necessary procedures as per LLP Act, 2008.