How to Close Down an LLP

The procedure to dissolve a limited liability partnership is carried out in accordance with Section 1003 of the Companies Act 2006, and there are a number of requirements that must be met before it can be done. The limited liability partnership (LLP) cannot have traded within the three months leading up to the application for its closure. Also within that time-frame, the LLP cannot have changed its name.

Additionally, the LLP cannot be a party to legal proceedings now or in the future if its principals wish to wind it up, and the LLP cannot have made a disposal for the value of its property or its rights. If you want to know how to close down an LLP, Coddan has the expertise to assist you so that it is done correctly and in accordance with the law.

When planning to dissolve an LLP, the first thing you must do is advise everyone connected with it, from the LLP members and the employees, along with any investors in the operation. After that is done, a striking-off application form from Companies House must be completed, and sent to Companies House along with the fee.

Copies of the striking-off form must be given to all parties within seven days of it being sent to Companies House. This includes everyone from employers to managers to members and any creditors and trustees.

When Companies House receives the application, it publishes details in the relevant edition of the financial publication the Gazette - London, Edinburgh or Belfast - and there is then a grace period of three months before the LLP is removed. If, however, there are objections to the LLP's closure and they are found to be valid, the LLP dissolution will be suspended. In cases where the LLP is insolvent and is unable to pay its creditors, it can voluntarily be dissolved. This can also happen if a creditor or group of creditors obtain an order from a court.

Under the law, it is an offence to apply for the closure of an LLP if it is not eligible and if misleading of outright false information is provided in the application. It is also an offence if all parties are not given copies of the application within seven days of it being made and not withdrawing the submission if it occurs that the LLP is suddenly not eligible for closure.

Whether you're anywhere in the UK - England, Northern Ireland, Scotland or Wales - the Republic of Ireland, Cyprus, Isle of Man, British Virgin Islands, Russia, Spain, the United Arab Emirates, among others, and are wondering how to dissolve an LLP, Coddan is ready to help you along the way.