• Query

Hi, I want to close my LLP and continue business using Sole proprietorship. My LLP account is 5 years old and Auditable under Income tax act and GST from beginning.

Can you please tell me 

1 > what is the perfect time to stop businesses using LLP. I mean year-end or any time in year.

2> How many months will it take to completely close LLP.?

3> When can I except Income tax /GST department perform Audit/Scrutiny on last 5 years LLP records ..I had no Audit till now by Tax department.
 is it within 1 year ?

Thank you for your time
Asked 12 days ago in Income Tax

Hi,

 

1. Yes, it's better to close it in near year end. 

 

2.You can make an application to the Registrar for declaring the LLP as defunct and removing the name of the LLP from its register of LLP's.

The average time taken to close the LLP is about 15 - 20 working days, subject to government processing time and client document submission.

 

3.We need to discuss the same over call. 

Karishma Chhajer
CA, Jodhpur
1846 Answers
13 Consultations

5.0 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

1.You can stop it anytime. There is no such criteria so far.

However, it would be better to close it in year end subject to proper audit.

 

2.An application for closure of LLP is to be filed with necessary attachments duly signed and attested by the designated partner and a practising chartered accountant, or a company secretary or a cost and management accountant. The roc, if satisfied with the application, shall close the company within 90-120 days.

 

3. It is advisable to take a phone consultation for detailed discussion.

 

We have handled such cases before.

 

We may assist you in entire procedure.

Payal Chhajed
CA, Mumbai
4488 Answers
77 Consultations

5.0 on 5.0

Hii

if you want to continue your business then it is advisable to confirm Llp into proprietorship 

by doing this your business credentials will continue count and beneficial for bank loan, profiling etc 

Lalit Bansal
CA, Delhi
718 Answers
45 Consultations

5.0 on 5.0

Hello,

 

It can be done at any time during the year. Better to do it at the year-end. The whole process would take been more than a month.

I hope this answer satisfies your requirements. 

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2220 Answers
7 Consultations

5.0 on 5.0

1. There is no perfect timing. You cam close it whenever you want subject to it fulfilling certain criteria like no business operation in last one year and no assets and liabilities in the books.

 

2. Depending on the Registrar’s office, the whole process may take 3 to 6 months to complete.

 

3. Generally, its 3 years from the end of the relevant financial year but in  some case the department can do audit upto 7 years as well.

Lakshita Bhandari
CA, Mumbai
4878 Answers
316 Consultations

5.0 on 5.0

Yes, you need to wait for one year but that should not be a cause of concern. You can simultaneously start your proprietorship from today onwards.

Lakshita Bhandari
CA, Mumbai
4878 Answers
316 Consultations

5.0 on 5.0

Yes, you need to wait for 1 year meanwhile you can start your sole proprietorship. 

 

There is no problem in it.

Payal Chhajed
CA, Mumbai
4488 Answers
77 Consultations

5.0 on 5.0

Hi

Yes you need to wait for one year.

Karishma Chhajer
CA, Jodhpur
1846 Answers
13 Consultations

5.0 on 5.0

1. Application for closure can be given at any time during the year. It should have stopped its business at least i year before.

2. It takes aprrox. 3-4 months.

3. Time for audit is not fixed.

4. Application submitted to be supported by Indemnity Bonds to indemnify any person legally claiming after the LLP to be strike off and duly sworn Affidavits declaring all the information provided and statements given to be true, from all partners.

Ruchi Goel Anchal
CA, Gurgaon
214 Answers
1 Consultation

5.0 on 5.0

Dear sir,

 

For closure, the provision  is that the company/llp doesn't do activity  in business for 2 years form 24 will be file for that..llp will close through mca  and thereafter  PAN of llp will be surrender3 on that  basis..

Shiv Kumar Agarwal
CA, Delhi
386 Answers
74 Consultations

5.0 on 5.0

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