The government will soon come out with rules for winding up of limited liability partnership (LLP) firms which can be either voluntary or under orders of a tribunal. “We have written to Parliament asking if the winding-up rules can now be notified. A response is expected soon,” a Ministry of Corporate Affairs (MCA) official told. The winding-up rules, which are in line with the provisions of the new Companies Bill, provide for “an easier, simpler, less time-consuming and less cumbersome procedure for wrapping up and dissolving LLPs,” the official said.
In pursuance to the requirement of the LLP Act, the government had tabled the winding-up rules in Parliament during the first week of July. The rules, the official added, would be notified after getting the nod from Parliament. The LLP, which is a hybrid of partnership firms and companies, provides for another mode of setting up a business. As on date, 91 firms have registered under the LLP Act, most being consultancies, trading firms and financial businesses. The government has already notified various rules under the LLP Act, which came into force on March 31 this year.