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. An LLP may decide to wind up its
business by two modes, either by 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 Registration at time decides to wind up their company, either voluntarily or
compulsory. There is always an option to close LLP Registration. It is always better to close LLP
Registration rather than not getting the mandatory ROC Compliances as it can put Director of LLP
Registration under legal issues.
The time taken for LLP Registration closure is approximate 4 weeks and it requires all the documents
of LLP registration. Also all the existing partners of the LLP Registration should give their consent to
close LLP Registration. LLP Registration closure at ca4you starts from Rs 6,500/-.