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4 Common Mistakes to Avoid With Company/LLP Closure Process

27 July 2026 by
4 Common Mistakes to Avoid With Company/LLP Closure Process
Gaurav Kumar

Company/LLP Closure Process involves the formal process of winding up or striking off a company or LLP that is no longer operational. While the process itself is usually straightforward, businesses commonly run into avoidable issues along the way. Here are the mistakes we see most often, and how to steer clear of them.

Mistake 1

Applying for closure with pending statutory filings incomplete.

Mistake 2

Not settling all liabilities before applying.

Mistake 3

Assuming closure removes past compliance liability of directors entirely.

Mistake 4

Missing required NOCs from other regulators where applicable.

How to Avoid These Issues

Most of these mistakes come down to preparation. Having the right documents ready — No pending liabilities or the plan to settle them, Board/partner resolution approving closure, Latest financial statements and filings up to date, among others — and understanding the process before you start goes a long way toward a smooth outcome with the Ministry of Corporate Affairs (MCA).

Quick Reference: What You'll Need

  • No pending liabilities or the plan to settle them
  • Board/partner resolution approving closure
  • Latest financial statements and filings up to date
  • Bank account closure confirmation

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Company/LLP Closure Process: A Complete Guide