Change LLP Agreement
In India, registering an LLP follows rules laid out in the LLP Act of 2008. When you set up an LLP, you have to submit a special LLP Agreement. Think of it like a rulebook that decides how the LLP will work. This LLP Agreement isn’t just a piece of paper – it’s like the boss that guides everything the partnership does. Partners need to follow the rules in the agreement, and breaking any of them is a big deal. But, just like life, businesses change too.
In India, registering an LLP follows rules laid out in the LLP Act of 2008. When you set up an LLP, you have to submit a special LLP Agreement. Think of it like a rulebook that decides how the LLP will work. This LLP Agreement isn’t just a piece of paper – it’s like the boss that guides everything the partnership does. Partners need to follow the rules in the agreement, and breaking any of them is a big deal. But, just like life, businesses change too. That’s when you might need to tweak the LLP Agreement. Maybe you want to adjust how much money each partner puts in, change the kind of work you do, or sort out who does what. These changes are like updates to the rulebook, and they’re made when all the partners agree. When it’s time to change the LLP Agreement, RegisterKaro is here to help. We’re like the helpful guide that takes care of all the paperwork and legal stuff so your LLP can smoothly go through these changes. Think of us as your partner in making your business grow and evolve.
Primary Reasons – Change LLP Agreement
1. Change in partners;
2. Change in the name of LLP;
3. Change in rights and duties;
4. Change in the contribution of the LLP;
5. Change in business activities;
6. Change in registered address;
7. Change in profit-sharing ratio;
8. Other changes in the LLP agreement;
9. Winding up or dissolution;
What are the documents required to change the LLP agreement?
documents to be enclosed with Form 3:
1. Original LLP Agreement
2. Modified LLP agreement
3. Supplementary Deed
4. Resolution regarding the changes to be made, which is passed in a meeting by the LLP Partners
5. Any supplementary forms or documents required as proof
Documents to be enclosed with Form 4
1. Consent of each of the partners
2. An affidavit or other proof of a change in name
3. Evidence of cessation
4. If any of the partners is a company, the copy of the resolution in this regard
5. Copy of authorization/resolution mentioning the name & address of individuals(s) nominated as a representative of the partner/nominee
What is the process of changing an LLP agreement?
The step-by-step process to change the LLP agreement is as follows :
Step 1: The partners must meet to pass a resolution for the required changes in the draft LLP agreement. This may be to change capital contribution, for example.
Step 2: Within 30 days of the passing of the resolution, Form 3 needs to be filed with the Registrar.
The details to be submitted in Form 3 are :
1. Date of LLP agreement modification
2. Reason for the modification in the LLP agreement sample– whether it is due to:
- Change in a partner(s)
- Change in business activities
- Change in contribution and profit sharing percentage of any of the partners
- Any other change in matters
3. Duties & rights of partners
4. Restrictions imposed on the authority of any or all of the partners
5. Administration and management of the LLP
- The procedure of calling and conducting meetings
- Acts that can be made only with the approval of all or a specific number of the partners
6. Contents of the indemnity clause
- The partners’
- Inclusion
- Retirement
- Cessation
- Resignation and
- Expulsion
7. Disputes and resolution of issues related to
- The partners
- The partner and the LLP
- Possible activities of the business after the change
- The division of industrial activity after the change in the LLP agreement format.
- The details of contribution and profit sharing percentage of the partners after the change in the LLP agreement
Step 3: Form-4 needs to be filed with the Registrar (along with the Form-3),
- If the change in the LLP agreement format is due to the change in a partner(s) or designated partner(s).
- In case of the appointment, cessation, or change in designation/name/address of partner(s) or designated partner(s).
What's Your Reaction?
