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In case the LLP needs to close down its business or where it is not carrying on any business operations for the period of one year or more, it can create an application to the Registrar for declaring the LLP as defunct and removing the name of the LLP from its register of LLP’s.
1) To avoiding statutory compliance and filing responsibilities for the LLP’s which are not active.
2) To avoiding penalties and fines for late filing, it is better to officially Wind Up LLP’s which are inactive.
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