Winding up is the process, where all the assets of the business are sold to paying off creditors and distributing surplus if any, among the owners of the business. Winding up of Limited liability Partnership or Closure of LLP may be done by two modes viz.voluntarily winding up or compulsory winding up. In voluntary winding up partners may decide between themselves to wind up the operations of the business. In compulsory winding up an LLP may be compulsorily wound up by the order of the tribunal. There are certain circumstances for the LLP compulsory winding up. Eg. when LLP is unable to pay off its debts, where the number of partners of the limited liability partnership is reduced below two and it continues for the period of more than six months. Owner of LLP at any time decides to wind up their company, either voluntarily or compulsory. There is always an option to Closure of LLP in India.
It is always better to close LLP rather than not getting the mandatory ROC Compliances as it can put Designated Partner of LLP under legal issues. The time taken for LLP closure is approximate 4 weeks and it requires all the documents of LLP registration. Also all the existing partners of the LLP should give their consent to close LLP. LLP closure at MaxBusiness starts from Rs 6,500/-.