Overview
A Limited Liability Partnership (LLP) operates according to a legal document known as the LLP agreement, which defines the rights, duties, and responsibilities of all partners. Over time, as the business evolves, there may be a need to modify certain clauses of this agreement. This could involve changing the profit-sharing ratio, adding or removing clauses, changing capital contributions, altering the business objectives, or updating the roles and powers of partners. Any such change must be properly recorded through an amendment of the existing LLP agreement.
The Limited Liability Partnership Act, 2008 makes it mandatory to file the updated LLP agreement with the Ministry of Corporate Affairs (MCA) to make it legally valid. Partners must first pass a resolution approving the proposed change and then execute a supplementary LLP agreement reflecting the updated terms. This supplementary agreement must be filed online with the Registrar of Companies using the prescribed forms and fees. Once the Registrar approves it, the change becomes legally enforceable and binding on all partners.
It is important to follow this process carefully because if the revised agreement is not filed, the old terms continue to remain valid legally. This can lead to disputes among partners or non-compliance issues during audits or legal checks. A proper and timely update ensures clarity, transparency, and smooth operations of the LLP.
At BizGlobal, we assist you in making any changes to your LLP agreement in a quick, compliant, and stress-free manner. Our team drafts the supplementary agreement, prepares all the necessary resolutions, and files the forms accurately on the MCA portal. We ensure your LLP records are fully updated while you focus on running your business smoothly.
