LLP Name Object Change

Introduction

Facilitating LLP Name and Object Change with CorpIQ

Change is a sign of growth, and whether it's a new name or a new business direction, CorpIQ stands ready to facilitate these changes for your Limited Liability Partnership (LLP) with unparalleled ease and expertise. Our team of skilled professionals, including Chartered Accountants, Company Secretaries, and Lawyers, specialize in the legal intricacies involved in updating your LLP's name and business objectives.

CorpIQ's SERVICES FOR LLP NAME AND OBJECT CHANGE:

- Name Selection and Approval: We aid in selecting an appropriate new name for your LLP, ensuring it meets the regulatory requirements and is available for use, followed by filing the necessary application with the Ministry of Corporate Affairs (MCA).

- Drafting and Filing: CorpIQ meticulously drafts the requisite resolutions and documentation for the name and object change. We manage the filing of Form 5 for name change and Form 3 for amendments to the LLP Agreement pertaining to the change in business objectives.

- Compliance Management: Ensuring your LLP remains compliant, we handle all aspects of the legal process, including adherence to the LLP Agreement and the LLP Act, 2008.

- Guidance on Impact: Our services extend to advising on the broader implications of these changes, including modifications to existing contracts, operational adjustments, and communication with clients and suppliers.

- End-to-End Support: From initial consultation to final confirmation from MCA, CorpIQ provides end-to-end support, ensuring your LLP's transition is smooth and without any legal hiccups.

Note: The changing business landscape necessitates agility and adaptability. CorpIQ is your partner in ensuring that your LLP's name and objectives evolve as your business strategy does, without losing sight of compliance and operational continuity.

LEGAL SIDE OF LLP NAME AND OBJECT CHANGE:

The LLP act does not specifically provide for the alteration of LLP objects. The rules specify that if any changes are made to an LLP agreement, a copy and particulars of the change must be filed with the Registrar. Only section 11(2) (c) deals with LLP activities, which are actually covered in the LLP incorporation documents.

As part of LLP agreement, a clause regarding LLP activity and procedures to follow for changing the activity is typically included. The LLP agreement outlines the procedures to follow when altering the LLP agreement based on the understanding of the partners. The LLP shall file a copy of the revised LLP agreement with its respective Registrar of Companies after completing the procedures outlined in LLP.

FEATURES

• Incorporating an LLP allows it to engage in any legal business activity. However, the incorporation document prohibits it from engaging in NBFC business activities.

• According to the LLP name guidelines, if the name of the LLP indicates an activity, LLP activities must correspond to the activity indicated in the name.

• If LLPs wish to amend their object or activity, they can do so through the procedures in their LLP agreements. Generally, amending LLP agreements requires the consent of all partners with the required majority.

• It is possible that LLP will be required to change activities in the course of business, either by adding new activities or by removing those that are no longer necessary.

• If an LLP wants to change its primary business activity, or to add more activities to its current activity, it will need to record these changes in a supplemental agreement, which will need to be approved by the appropriate Registrar of Companies.

 

DOCUMENTS REQUIRED:

Processing LLP object alteration does not require much documentation; the LLP Agreement can be used in this case.

• An original copy of the current LLP Agreement is required to determine whether alteration is permissible, as well as the steps to be taken.

• If an LLP agreement needs to be amended, it usually requires the consent of all partners in writing or in a meeting of partners.

• Proposed objects must be in line with the name of the LLP if the name indicate the activity. Additionally, proposed objects should not be in the NBFC space.

 

PROCEDURE

• The first step in modifying LLP activities is to check whether the LLP agreement permits such changes.

• Check name availability on the MCA website and get the Name Approval Letter which is valid for 90 days.

• Generate documents such as consent of partners, minutes of partner meetings, and amendment agreements for limited liability partnerships.

• Verification of documents created is the next step after document preparation to ensure they are error- and omission-free.

• Documents are executed for filing once quality is confirmed. Forms are prepared for filing with the Registrar after the documents are executed for filing.

• It is possible that the registrar may call for further information/clarification. All such clarifications require a professional response and CorpIQ can help.

The forms will be registered by the ROC and the LLP will be able to begin with the new name and operations.