Change in LLP Agreement

Introduction

Ensure Your LLP Agreement Reflects Your Business with CorpIQ

As your business evolves, so should your LLP Agreement. CorpIQ is committed to helping you amend your LLP Agreement to accurately reflect the current operational and structural dynamics of your partnership. Our dedicated team of legal professionals, including Chartered Accountants and Company Secretaries, is adept at navigating the complexities involved in updating your LLP Agreement in accordance with the LLP Act, 2008, and other relevant statutes.

CorpIQ's SERVICE FOR CHANGE IN LLP AGREEMENT:

- Customized Amendment Drafting: Whether it's a change in management structure, capital contribution, or profit-sharing ratios, CorpIQ will draft amendments that cater specifically to the nuances of your LLP.

- Seamless Filing and Documentation: We manage the entire process of documenting changes and filing the required forms with the Ministry of Corporate Affairs (MCA), ensuring that your amended LLP Agreement is registered without delay.

- Regulatory Adherence: Our expertise guarantees that all changes are made in full compliance with the legal framework, thereby safeguarding your LLP against any future discrepancies or legal challenges.

- Comprehensive Review: CorpIQ conducts a thorough review of your existing LLP Agreement to identify any areas that may require updates or modifications to better serve your partnership's interests.

- Transparent Communication: We facilitate clear and transparent communication among partners to ensure consensus and understanding regarding the changes being implemented.

- Post-Amendment Support: Following the amendment, CorpIQ provides ongoing support to help integrate the new provisions into your LLP's operational procedures, ensuring a smooth transition.

Note: Changes to your LLP Agreement are pivotal decisions that can have long-standing effects on your business operations. CorpIQ provides the expertise and meticulous attention to detail required to make these changes effectively and legally sound.

LEGAL SIDE OF CHANGE IN LLP AGREEMENT

LLP firms are partnerships created by two or more partners with limited liabilities. LLPs have a different legal status. In addition to protecting oneself from one's own liability, each partner is also protected from the joint liability created by the wrong business decision or misconduct of the other partner.

They must be registered in accordance with the (MCA) Ministry of Corporate Affairs' compliance and regulatory norms. LLP registration is governed by the Limited Liability Partnership Act, 2008, and a separate LLP agreement must be filed. LLPs are required to register with the ROC.

LLP agreements govern the way an LLP operates. The LLP agreement determines how a LLP operates. It is the partners' responsibility to follow every rule and regulation stated in the LLP Agreement. The LLP agreement is not a public document that is shared with everyone.

In a partnership firm, things don't always work out, and there are periods when things aren't running smoothly. As a result of such situations, and for a number of other reasons, LLP agreements must be revised. A partnership agreement can be changed at any time by mutual agreement after incorporation. The consent of all designated partners is required for any changes to the agreement.

REASONS FOR CHANGING THE LLP AGREEMENT

• Partners' change
• LLP name change
• Rights and duties change
• LLP contribution change
• Business activities change
• Profit-sharing ratio change
• Registered address change
• Dissolution or winding up
• A number of other changes have been made to the LLP agreement

 

DOCUMENTS REQUIRED

• An authorised partner's digital signature
• The Limited Liability Partnership Agreement (Original, Modified, Supplementary)
• The certificate of incorporation (COI)
• The LLP's PAN card

 

PROCEDURE

The following steps must be completed before the registration and form filling process can begin:

• An amendment to an LLP begins with a meeting of the partners and the approval of all parties involved. This can be done by passing a resolution.
• A partner must be empowered to file the amendments with the MCA and fulfill the amendment requirement.
• After completing the preceding two processes, the LLP agreement require to be amended.
• There is also the requirement to pay stamp duty.
• Partners are required to sign both the supplementary deed and the LLP agreement to confirm their validity.
• A minimum of two witnesses must certify the amended LLP agreement.

After completing the preceding steps successfully, amending the LLP Agreement is fairly straightforward. Steps to follow are as follows:

Step.1: Adoption and Passing of a resolution.

Step.2: Within 30 days of the resolution being passed, Form-3 must be filed with the Registrar.

Step.3: In cases of substitution of designated partners, Form-4 must also be filed along with Form-3. In the same way, if you change your address, name, designation, or another detail, you need to file Form-4.

Note:

• There is a LLP agreement available for download at the Ministry of Corporate Affairs website (MCA).
• If you are using a digital signature certificate, you can fill out the e-form online or fill out the form by downloading, filling out, and submitting it.

A change made to an LLP agreement can only be implemented once it has been approved by the Ministry of Corporate Affairs (MCA).