Winding up of LLP

Eligibility for Winding up:

• A declaration by majority of the designated partners affirming that the corporate person is in a position to pay all its debts in full from the proceeds of the assets to be sold in liquidation.

• The voluntary liquidation is not undertaken to defraud any person.

Procedure of Summary Winding up:

1. Obtaining insolvency declaration in affidavit by majority of designated partners.
2. Last 2 years audited financial statements and valuation report,if any
3. Obtaining Resolution from majority of partners within 4 weeks of obtaining the declaration.
4. Approval of voluntary winding up from atleast 2/3 of its creditors within 7 days of such resolution.
5. Inform to the Registrar & IBBI within 7 days from creditors approval
6. Commencement of Liquidation process
7. An insolvency professional to be appointed as liquidator
8. Liquidator shall prepare report & submit it.
9. The liquidator shall distribute the proceeds from realization within 6 months from the receipt of the amount to the stakeholders. The proceeds shall be distributed after deducting the liquidation cost therefrom.