What is an LLP agreement?

LLP agreement is a charter for a partnership firm which is similar to MOA and AOA for a private limited company. The agreement defines the scope and extent of working of the partnership firm.

What is the amount of stamp duty payable on change of LLP agreement?

The stamp duty applicable on the application based on the capital contribution involved in the change of the LLP agreement. The stamp duty on the agreement will be affected by the state in which the application is made to.

What are the reasons to change LLP agreement?

The change in LLP agreement is required due to following reasons:

• Change Business Activity - Any LLP that is incorporated in India has to list down the activities performed by it in the agreement; hence any additional activity they need to perform must be performed after change in the activities. The amended agreement should include the new activities and product lines by adding it to the ones already present or by removing the discontinued activities.
• Capital change or change in the profit sharing ratio - If there is a need to increase the capital of the LLP the same can be done by executing a supplementary deed.
• Change in rights and responsibility of partners - The change in LLP agreement will be required when there is a requirement of changing the responsibility of the partners as per their roles in the LLP.

When will the changes in the LLP agreement be effective?

The changes in LLP agreement shall be effective from the date of execution, however the change in the llp agreement will be effective on the date the receipt for approval has been obtained

What is the process of executing supplementary LLP agreement?

When the deed is prepared by the professionals assigned to you with the appropriate stamp duty for the agreement and the consent has been taken from the partners the change the LLP agreement can be executed. The deed must be notarised if the ROC has made any such requirement necessary in the past.

Is notary necessary on the supplementary deed?

The requirement for supplementary deed depends upon the requirement of the state in which the LLP has been incorporated. The notarisation of the supplementary deed is not required in all the states. For instance notarisation in Delhi is not necessary.

What is the process of change of LLP agreement?

The LLP agreement can be changed by passing a board resolution and by seeking approval for the revision of the application by filing Form-3 with the registrar.