img

Change In LLP Agreement

2150* Basic Package

CONTACT US

Overview

LLP agreement is a legal contract that controls the LLPs and their operations. All the partners in a limited liability partnership must obey the clauses of the Agreement. However, LLP agreement can be changed at any time during a year, but you have to seek approval from all the partners. There are various reasons for modification in an LLP agreement. Change in capital, rights, and responsibilities are the top reasons for LLP agreement modification.

If any LLP wants to modify the Agreement's clauses, they have to execute a supplementary agreement as an appendix to the traditional Agreement. This Agreement would be executed by payment of prescribed stamp duty. If you are making any kind of change, then you must notify the registrar of certificate of LLPs. It has to be done within 30 days of the change of the supplementary deed.

Reasons for modification in LLP agreement

There are various reasons for modifying an LLP agreement. However, some of the major reasons for LLP agreement modifications are:

Change in business operation

A Limited liability partnership in India can perform any activity that is not mentioned in the LLP agreement. Thus, as per companies Act, if any LLP wants to change its operations, it has to modify its Agreement and mention its activity. You can change the activity by adding the new activities in the Agreement.

Modification in capital and profit sharing ratio

Money is one of the most crucial needs of any business. It is required to be changed in the next time. Both the capital and profit sharing ratio interconnects from the partner's point of view. Thus, it should be mentioned in the LLP agreement. Any LLP that is increasing its capital must mention the same in a Modified contract. Further, the capital changes are of three types:

1) Addition of funds in LLP

2) Reduction of funds in LLP

3) Change in the ratio of funds introduced by the partners

Modification in the partners' rights and liabilities

The partners and the status of a Limited liability partnership are intact. The functions and liabilities can also be modified. But before changing the liabilities, it must be mentioned in the LLP agreement. The LLP agreement includes the administrative powers and retractions of the partners in a few activities. Thus, any changes in the Agreement must be intimidated in the Agreement.        

Modification in the management structure

All the LLPs makes changes in the management structure with the growth in business. Any such changes must mention in the LLP agreement.

Change in terms and conditions

Any business in India has some terms and conditions; similarly, the LLPs also have terms and conditions. Any changes in the terms must be intimidated to the ROC. It includes activities like:

1) Appointment of partner

2) Addition of partner

3) Termination of partner

4) Retirement of partners

5) Resignation of partner

Modifying LLP agreement

To modify the LLP agreement, you must obtain approval from the designated partners. The approval must be recorded in a meeting with all the partners. At the meeting, the partners, one of the designated partners of the LLP, must provide authorization to the modifications in the LLP agreement.

Modification in other clauses 

LLP includes many other clauses that govern it. It includes clauses like LLP jurisdiction, Notice period, terms of resignation, condition of appointment, and removal of any employee, duration of the partnerships, and many more. Thus, if you want to make any kind modification in any such clauses, you have to mention it in the LLP agreement. It should be done within 30 days of the modification.

Document Required

Digital signature certificate
  • Any LLP that wants to make modifications in its LLP agreement must intimidate it with ROC. For that, you need to provide the digital signature certificate of one of the authorized partners.
LLP Agreement
  • If you are making modifications in your LLP agreement, you have to intimidate it to the ROC, and for that, you have to provide your modified LLP agreement, including the amendments.
Incorporation documents
  • All the LLPs that are making modifications in Agreement must provide copies of incorporation document that includes the LLP incorporation certificate
PAN card
  • The partners of the LLPs have to provide copies of their PAN cards. It is an essential certificate.

Time Lines

  • (2 to 10 Days)
  • Purchase the Service
  • Upload / send the Documents
  • Discussion with expert
  • Filing of application with authorities
  • Confirmation to client

Service Covered

Pricing for what you want required service

Basic

2150*
  • Expert Consultation
  • Change in LLP Agreement

Business

3050*
  • Expert Consultation
  • Change in LLP Agreement
  • Registration with PAN
  • Registration with GST

Enterprise

3950*
  • Expert Consultation
  • Change in LLP Agreement
  • Registration with PAN
  • Registration with GST
  • Registration with MSME
  • Notes:
  • * This price is inclusive of all Govt filing fee and excluding GST amount.

FAQ's

Related Posts

Subscribe To Our Newsletter

To get the latest news on changes of compliance