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LLP Closure

  • Provides a formal and legal termination of the partnership, ensuring the LLP's name is removed from the official Ministry of Corporate Affairs (MCA) records.
  • Relieves the designated partners from the perpetual burden of annual compliance, including the filing of Form 8 and Form 11.
  • Prevents the accumulation of heavy daily penalties (₹100 per day per form) that apply indefinitely to inactive LLPs.
  • Protects the credit score and professional standing of the partners, avoiding potential litigation for non-compliance.
  • Facilitates the legal surrender of tax registrations like GST, PAN, and TAN, preventing future tax notices or assessments.
  • Offers a "Clean Exit" strategy through Form 24, which is significantly more costeffective than a formal winding-up process.
  • Ensures that all financial and legal liabilities are properly settled and documented, providing peace of mind to all partners.
  • Signals to regulatory authorities and stakeholders that the business has concluded its operations in a transparent and orderly manner.

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7 Years

Of Experience

Cases Solved Icon

3622 +

Cases Solved

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10 +

Awards Gained

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144 k +

Trusted Clients

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36 k+

Queries Solved

Experience Icon

7 Years

Of Experience

Cases Solved Icon

3622 +

Cases Solved

Awards Gained Icon

10 +

Awards Gained

Trusted Clients Icon

144 k +

Trusted Clients

Queries Solved Icon

36 k+

Queries Solved

Experience Icon

7 Years

Of Experience

Cases Solved Icon

3622 +

Cases Solved

Awards Gained Icon

10 +

Awards Gained

Trusted Clients Icon

144 k +

Trusted Clients

Queries Solved Icon

36 k+

Queries Solved

Overview

The Closure of a Limited Liability Partnership (LLP), commonly referred to as "StrikeOff," is governed by Section 37 of the LLP Act, 2008, and Rule 37 of the LLP Rules, 2009. The "trigger" for this process occurs when an LLP has been inoperative or has not carried on any business for a period of at least one year or more.

In the 2026 MCA V3 regulatory ecosystem, the application for closure is filed via e-Form 24. A mandatory prerequisite for this filing is that the LLP must have "Nil" assets and "Nil" liabilities as of the date of the application. Furthermore, all pending annual filings (Form 8 and Form 11) up to the date the LLP ceased its operations must be completed before the strike-off can be initiated.

For the FY 2025–26 cycle, the MCA requires a certified "Statement of Accounts" and a "Statement of Assets and Liabilities" that are not older than 30 days. Additionally, even during the closure phase, the Audit Trail (Edit Log) requirement remains applicable for LLPs maintaining digital records; the final disposal of assets or settlement of debts must be captured in the unalterable digital log. Once Form 24 is submitted, the ROC publishes a notice on the MCA website for one month to invite objections from the public or the Income Tax Department before the final dissolution.

Document Required

Documents
  • 1 Permanent Account Number (PAN) Card of the LLP.
  • 2 Aadhaar Card of all the Partners.
  • 3 PAN Card of all the Partners.
  • 4 Statement of Assets and Liabilities (Nil) certified by a Chartered Accountant.
  • 5 Indemnity Bond signed by all designated partners (duly notarized).
  • 6 Affidavit signed by all designated partners confirming no pending dues or litigation.
  • 7 Copy of the Acknowledgement of the latest Income Tax Return (ITR).
  • 8 Copy of the Consent Letter signed by all partners of the LLP.
  • 9 Bank Account Closure Certificate or a self-declaration of the same.

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Pre-Event Procedures

Step Name Short Description Authority
Asset Liquidation Disposing of all physical and financial assets to reach a "Nil" state. Designated Partners
Liability Settlement Paying off all creditors, loans, and statutory dues (GST/TDS). Designated Partners
Bank Account Closure Closing all corporate bank accounts and obtaining a closure certificate. Bank Manager
Consent of Partners Obtaining unanimous written consent from all partners for the closure. Partners

Filing Requirements

Form Name Trigger/Description Countdown Deadline
Form 24 Application to the Registrar for striking off the name of the LLP. 30 Days from Stmt. of Accounts
Final Returns Filing Form 8 and Form 11 up to the date of cessation. Before Form 24
IT Intimation Formally notifying the Income Tax authorities about the dissolution. Post-ROC Approval

Penalty and Non-compliance Risk

Penalty and Non-compliance Risk

Rejection of Form 24 due to undisclosed assets or liabilities
High daily penalties (₹100/day) for filing Form 24 without completing pending annual returns
Personal liability of partners for any hidden debts discovered after closure
Difficulty in obtaining "No Objection" from the Income Tax Department
Suspension of the partners' ability to incorporate new entities due to "noncompliant" history
Legal prosecution for making false declarations in the Affidavit or Indemnity Bond
Investigation by the ROC if the financial statements are found to be inconsistent

FAQs

How long must the LLP be inactive before applying for closure?

The LLP must have had no business operations for at least one year prior to filing Form 24.

Do we need to file pending annual returns?
What happens if an LLP has a pending GST refund?
Is a Special Resolution required?
What is Form 24?
Can the ROC strike off an LLP on its own?
Is a Valuation Report required?
How long does the closure process take?
What is the "Audit Trail" requirement for 2026?
Can a closed LLP be revived?

Seamless Compliance for Your Business

Focus on growing your business while we handle the complexities of statutory compliance. From GST filing to Annual Audits, our automated systems ensure you never miss a deadline.

CA
  • GST Filing & Reconciliation
  • Income Tax Returns (ITR)
  • TDS/TCS Returns
  • Statutory & Tax Audit
  • ROC Company Filings

What Our Clients Say

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Sandeep Reddy
Founder, Retail Trading Business
" ARK Advisors made our audit process smooth and stress-free. Clear checklist, timely follow-ups, and very practical guidance. "
Anusha Sharma
Partner, Professional Services Firm
" Their team quickly identified compliance gaps and suggested actionable fixes. Reporting was crisp and easy for management to understand. "
Rohit Kulkarni
CFO, Manufacturing Unit
" We got strong process recommendations and control improvements. The audit insights genuinely helped us reduce leakage and improve discipline. "
Meghana Rao
Director, Startup
" Professional, responsive, and very transparent. They explained everything in simple terms and kept the entire process on schedule. "
Imran Khan
Owner, Hospitality Business
" The team ensured our documentation was audit-ready and supported us throughout. Great experience and strong attention to detail. "

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