Change in LLP Agreement
Change in LLP Agreement can be made at any time as per the requirement and need arises for such change. All such change need to be made in Supplementary LLP Agreement forming part of main LLP Agreement.
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Every LLP incorporated in India is regulated and governed by The Limited Liability Partnership Act 2008 read with The Limited Liability Partnership Rules 2009 and with the bye-laws of the LLP contained in The Limited Liability Partnership Deed.
Limited Liability partnership Deed is a written agreement between the existing partners of the LLP properly executed on the requisite value of Stamp paper calculated on the basis of capital of the LLP. This Limited Liability partnership deed is termed as LLP Agreement.
As per the requirement and in accordance with the need of ever changing business scenarios, the LLP once incorporated need to change and adapt itself as per the circumstances. Any circumstances which warrant change in LLP agreement must be made with the supplementary agreement. A supplementary agreement must also be made sequentially as per their execution such as supplementary agreement 1, supplementary agreement 2, and supplementary agreement 3 and so on.
Supplementary Agreement is made and executed for every change in LLP agreement. Some of the common examples of executing a supplementary agreement are:
- Addition of any new partner
- Removal or resignation of any existing partner
- Change in Capital or profit sharing ratio
- Change in business activity of the LLP
- Change in management composition of the LLP
- Alteration in rights and liability of any partner
- Alteration or change in any other clause of the LLP
For carrying out any change in LLP agreement, all partners must convene a duly meeting of members of the LLP mentioning the agenda of alteration of LLP agreement with its detailed explanation. All the partners must arrive at a consensus amongst them by voting or by any other manner as decided amongst them for alteration in LLP Agreement.
After finalising the required change in LLP Agreement in the meeting of partners, a proper meeting minute must be kept in writing after properly signed by the designated partners mentioning the points of discussion and final decision regarding alteration in LLP Agreement.
After finalizing the alteration in LLP Agreement, a properly executed Supplementary Agreement must be executed on requisite value of stamp paper as per Indian Stamp Act. This Supplementary agreement must be executed within 30 days of finalizing the alteration in LLP Agreement.
Required LLP Form -3 must be required to file before the registrar mentioning the alteration in LLP agreement and date of effect for the same. This LLP Form must be supported by the Supplementary Agreement along-with original agreement.
With the ever changing Law and regulatory requirements, we keep on track and advise the same on timely manner in order to ensure proper compliance. We at ReturnFilings.Com will understand the purpose of your change in LLP Agreement and thereafter will provide you detailed analysis mentioning the law requirement and compliances need to fulfil in order to provide change in LLP Agreement related services economically and efficiently. We at ReturnFilings.Com will provide you details of regulatory filings in order to ensure proper smooth and timely compliances. We at ReturnFilings.Com are determinate to provide end to end solution; our motto is you concentrate on your business while we at ReturnFilings.Com will take care of all your compliances need.