Closure of an LLP (Limited Liability Partnership) is the legal process of formally winding up an LLP that is no longer carrying on any business or operations. If an LLP has been inactive for at least one year or more, it can apply for closure through the Fast Track Exit mode by filing Form 24 with the Ministry of Corporate Affairs (MCA). The process requires clearing all outstanding dues, closing the bank account, and submitting documents like the LLP agreement, consent of partners, and a statement of accounts certified by a Chartered Accountant. Proper closure helps partners avoid penalties, ensures legal compliance, and protects them from future liabilities. At Wegmans India, we help you close your LLP quickly and efficiently while ensuring all legal formalities are handled smoothly.
LLP Agreement
A copy of the signed and updated LLP Agreement.
Consent of All Partners
Written consent from all partners approving the closure of the LLP.
Statement of Accounts (No Older Than 30 Days)
Must show that the LLP has no assets or liabilities, certified by a Chartered Accountant.
Affidavit & Indemnity Bond
To be signed by all designated partners, confirming that the LLP has no operations, liabilities, or pending dues.
Income Tax Return Acknowledgment (if filed)
Proof of the last filed income tax return, or a declaration if none were filed.
Copy of PAN Card of LLP
For identity and verification.
Bank Account Closure Proof
A letter from the bank confirming the closure of the LLP’s current account.
Form 8 and Form 11 (if applicable)
ROC filings for previous years, if any returns were submitted.
Digital Signature Certificate (DSC)
Of at least one Designated Partner for filing online.
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Avoids Future Compliance Burden
Once the LLP is officially closed, you're no longer required to file ROC returns, tax filings, or maintain books of accounts — saving time and money.
Prevents Penalties and Late Fees
Non-filing attracts ?100 per day per form. Closure stops future penalties and protects partners from legal consequences.
Protects Partners from Legal Risks
Proper closure ensures that partners are not held liable for the LLP’s future actions, filings, or defaults.
Peace of Mind
Closing a dormant or non-operational LLP gives partners mental relief, knowing there are no pending regulatory or tax obligations.
Ensures Clean Financial Record
Once the LLP is struck off, its bank accounts are closed, and PAN deactivated, helping avoid confusion or misuse.
Easy to Start Fresh
Closing an inactive LLP lets entrepreneurs start a new venture with a clean slate, free of old obligations or compliance baggage.
5 to 6 days
1. When can an LLP be closed?
An LLP can be closed if it has not carried out any business for at least one year and has no outstanding assets or liabilities.
2. What is the method for LLP closure in India?
LLPs can be closed through the Fast Track Exit process by filing Form 24 with the Ministry of Corporate Affairs (MCA).
3. Do we need to file all previous returns before closing an LLP?
Yes, you must file all pending Form 8 and Form 11 (if applicable) before initiating closure through Form 24.
4. What if the LLP has liabilities?
The LLP cannot be closed until all liabilities are cleared. Only debt-free and non-operational LLPs are eligible for closure.
5. Is it mandatory to file Income Tax Return before LLP closure?
If the LLP has ever generated income, then Income Tax Return must be filed before applying for closure.
6. What is the role of the Statement of Accounts?
You must submit a recent Statement of Accounts (not older than 30 days) certified by a CA, showing zero assets and liabilities.
7. How long does it take to close an LLP?
The closure process usually takes around 2 to 4 months, depending on documentation and ROC approval time.
8. Can an LLP be closed without partner consent?
No. Consent from all partners is mandatory to apply for closure via Form 24.
9. What happens if we don’t close the LLP and ignore filings?
Non-filing results in heavy penalties and can lead to legal notices, disqualification of partners, and even strike off by the Registrar.
10. Can I restart the same LLP after closure?
No, once closed, the LLP cannot be revived. You would need to register a new LLP if you wish to start again.