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Before incorporating an LLP it is very important to have an LLP agreement within 30 days. The LLP agreement is a paper which is used to define the rights and responsibilities in an LLP.

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What is an LLP agreement ?

If an agreement is well structured, it actually helps in strengthening the working of an LLP. A person drafting the agreement should have the skills to form an agreement which defines the working of an LLP appropriately.

Reasons for changing an LLP agreement

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Reason 1

Change in the working of an LLP.

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Reason 2

Change in the business activities carried out by an LLP

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Reason 3

Change in the profit shared by different partners in the company

Process of changing the LLP agreement

  • 1

    In order to change the agreement the resolution is passed requesting for the revise in an LLP agreement.

  • 2

    After the resolution is passed, form three is filled within 30 days

  • 3

    The form-3 is filled with details such as the date of modification of the agreement and the reasons of the change in the agreement.

  • 4

    There can be various reasons for the change in the LLP agreement.

  • 5

    After submitting all the details the details such as the type of change made in an agreement is reported with other details

  • 6

    The documents needed are attached to the form 3.

  • 7

    The applicant needs to submit form 4 if the change in the agreement is because of the change in the partnership of the business.

  • 8

    Form 4 is also filled in case there is a change in the address or the name of the office or in case there is a change in the partnership.

  • 9

    After filling the form, the documents that are to be attached with the form are submitted

  • 10

    The forms are then submitted to the registrar which then processes the change in the LLP

Documents required for changing in LLP agreement

Documents are -

  • Letter of consent from all the partners of the LLP
  • The evidence of cessation
  • Proof of the change in the name of the company
  • The initial LLP agreement
  • The upgraded LLP agreement
  • Resolution of the company if there is an addition in the partner
  • Name and address of the partner to be added in the company along with the authorization letter

Frequently asked Questions

Why are changes made in the LLP agreement?

Every change that is made in an LLP has to be reported and then modified in an LLP Agreement as it is the foundation of an LLP.

When are the changes reported in an LLP agreement?

Every change that is made in an agreement is to be reported within 30 days.

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