A Limited Liability Partnership Firm is not carryon by the Partners of LLP always for the doing the business. One partners misconduct or negligence is not affect the another partner, he is not responsible. LLP partners having the limited Liability Partnership similar to shareholders of the Private Limited Company. Some of the states asking that one of the partner to be a “ General Partner” with unlimited Liability means he is ultimately responsible for debts of the business, lawsuits or breach of contract. The partners having the right to manage the business and accounts whereas board of directors manages in Private Limited company. The LLP can be winding either voluntary or Tribunal, the section 63, 64 and 65 of LLP Act 2009 regulates the winding up process.

Voluntary winding up of Limited Liability Partnership

Winding up of LLP process can be done by with the approval of ¾ of the partners. A LLP shouldn’t apply for with intention of defraud of any person, the same to be must declared by a Partners accompanies with the statement of Assets and Liabilities as on application date before making declaration for winding up.

Striking off of Limited Liability Partnership

A LLP can be easily winding up by making an application in Form 24 and now possible to easily close the LLP. A LLP winding up was a very long process before the introduction of the Limited Liability Partnership (Amendment) Rules, 2017 ministry of Corporate Affairs.