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
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.
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.
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
Once board resolution is passed, all the directors of the company should produce an affidavit on a stamp paper or Rs 100/- duly notarized & individually stating the following in it:=> 1. <<That the company has not been carrying on any business for the past one year at least.>> Does it mean I need to wait for 1 year after I stop doing business suing LLP. Thanks
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
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.
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.
Yes, you need to wait for 1 year meanwhile you can start your sole proprietorship.
There is no problem in it.
Hi
Yes you need to wait for one year.
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.
Dear sir,
