Two or more participants in a limited liability partnership (LLP) create a unique partnership with restricted obligations. LLP is registered in accordance with the compliance and legal requirements set forth by the Ministry of Corporate Affairs (MCA). The Limited Liability Partnership’s management, responsibilities, and administration are governed by this document. After 30 days from the establishment, this document is registered with the Registrar of Companies.
What modifications are possible to the LLP Agreement?
Change the LLP’s name and function
in order to modify the LLP Agreement.
Changes to the registration address, contributions, and profit-sharing percentage
To change the LLP’s obligations, rights, and contributions
Modification of the LLP Agreement using these steps
There are a few paperwork and procedures to take before amending an LLP Agreement:
- Setting up a meeting of the partners and obtaining their approval to form an LLP is the first stage. The partners’ resolution is passed in order to accomplish this.
- The authorization is given to one of the partners in order to meet the appointment’s requirements and to file with the MCA.
- Following the completion of the aforementioned two processes, stamp duty must also be paid in order for the LLP agreement to be fully executed.
- the necessity of paying Stamp Duty
- Validity of the LLP agreement and supplemental deed
- The partners must complete the signature.
- At least two witnesses are required to attest.
The subsequent procedures to amend the LLP Agreement are relatively simple to execute once the aforementioned steps have been successfully completed.
Following are the steps
Step1: in modifying the LLP Agreement is passing a resolution.
Step 2: After the resolution has been approved, a form-3 must be submitted to the Registrar within 30 days.
What justifications exist for amending an LLP Agreement
change in LLP agreement may be made for the reasons listed below:
The LLP partners can alter the capital contribution.
- With Capital
- Decrease Capital
- The Capital Management Structure has altered.
- The modification of the terms and conditions for the participation, resignation, expulsion, or retirement of the LLP partner
- In LLP, the rights and obligations are altered.
- Increase or decrease in the LLP clause
FAQ
1. What is the amount payable for stamp duty to change LLP agreement?
What is the stamp duty payment for changing an LLP agreement? At the time of a change to an LLP agreement, a fee of Rs. 100 is due as stamp duty.
2. When will the changes made in the LLP Agreement become effective?
The LLP Agreement will take effect as of the execution date or the effective date following any modifications. However, the Registrar must first approve the application submitted in the relevant form before the same can be done.
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