An LLP agreement is a well drafted and organised document that helps in functioning of the business. Provisions of a company is not added to LLP as it is not a company. Therefore, an LLP agreement should mention all the corporate related concerns.
The LLP agreement can be altered. A resolution needs to be passed approving the LLP Agreement. The second step is to include the formation of a file with Form 3 under the Registrar.
We, at Complisure will guide you to alter your agreement.
An LLP agreement must contain the following points
- Should be suffixed with the name of the organization.
- Must be operative within 30 days from the amalgamation date.
- The LLP agreement is signed between the partners of the firm and/among all the partners of LLP according to the LLP act.
- Details of incorporation, State of Recognition, its operations should be included in the agreement.
- Must include all the Terms and Conditions like initial partners, business activities, duration, name of the LLP and future name changes, powers of an LLP holder, auditing management, accounting, admission of new partners, etc.
- Must also include future amendments in capital contribution, interest on disinvestment and contribution by partners involved in an LLP Agreement.
- Aspects like Bookkeeping and Accounting details should be maintained in the agreement.
- Profits allocated between the partners in the LLP agreement, final distribution in the LLP must be stated.
Similar to that of MOA and AOA in a Company, the LLP Agreement provides obligations, rights and duties of the partners in the LLP firm.
With the agreement to pass a resolution with the necessary changes in the LLP draft, we shall collect and validate the documents for submission.
Form- 3 must be filed with the Registrar, within 30 days of passing the resolution.
The details that must be submitted in Form-3 are:
- Modification date of the Agreement
- Purpose of modification of the LLP agreement.
- Change in Partners
- Change in business transactions
- Change of profit-sharing or contributions by any partner
- Any of the following:
- Rights and Duties of a Partner
- Imposed restrictions with regards to the authority of any or all partners. The managing and administration of the LLP
- The procedure of appointing and conducting meetings
- The formation of Acts that require a specified number of partners
- Altering the contents of the Indemnity clause
- The Partners’
- Resignation and
- Any disputed and resolutions concerning:
- The Partners
- The Partners and the LLP
- Voluntary closure of the LLP
- The Duration of the LLP
- The Proposed business activities of the LLP after the alteration in the LLP Agreement.
- The division of activity in industry after the change in the LLP agreement structure.
- The details of the involvement and profit-sharing structure of the partners after the change in the LLP agreement
Besides Form - 3, Form – 4 must be submitted if:
- There is a change in the LLP agreement arrangement due to the change in a partner(s) or a change in the designated partner(s).
- in case of any modification - the appointment, termination or change in designation/name/address of the partner(s) or the designated partner(s).