FAQ on Closing an Inactive LLP

1. What is the process to close an inactive LLP?

To close an inactive LLP, file Form 24 with the Ministry of Corporate Affairs (MCA), along with documents like a statement of accounts and partner declarations. The process typically takes 3 to 6 months, depending on MCA approval.

2. What documents are required for closing an inactive LLP?

You will need Form 24, a Statement of Accounts confirming no liabilities, a Declaration and Affidavit from partners, Consent from all partners, and a No Objection Certificate (NOC) from tax authorities, if applicable.

3. How long does it take to close an inactive LLP?

Closing an inactive LLP usually takes between 3 to 6 months, though opting for a fast-track process may speed it up.

4. What are the costs involved in closing an LLP?

The costs include filing fees for Form 24 and any professional assistance fees. These are far lower than the annual compliance costs of keeping an active LLP.

5. Can I close my LLP if it has pending tax dues?

No, the LLP must have no outstanding tax liabilities. You’ll need an NOC from tax authorities before proceeding with the closure.

6. What happens if I don’t close my inactive LLP?

If you don’t close an inactive LLP, you could face penalties, fines, and legal consequences, including being barred from forming another LLP.

7. Can I reopen my LLP after it has been closed?

Once an LLP is dissolved, it cannot be reopened. If you want to restart, you'll need to form a new LLP.

8. How can NewTaxAge help in closing my LLP?

NewTaxAge can assist you with every step, from filing Form 24 to ensuring proper documentation, making the process smooth and hassle-free.