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Consent of the designated partners for increase in the contribution
Minutes of the meeting of the designated partners
Form of Contribution
Stamp paper according to the contribution of the LLP that to be introduced.
Of these if a partner wished to increase or reduce a monetary contribution (or in other words increase or reduce capital investment) an amendment of the LLP Agreement is necessary. The flexibility of the LLP as a business model is clearly visible in such a situation. The LLP Act, 2008 is silent on the method to increase or reduce capital. This is due to the fact that the law wishes to provide the partners of an LLP with the ability to regulate their own business. Thus, as per Section 33 of the LLP Act, 2008, the obligation of a partner for their contribution to the LLP shall be decided as per the LLP agreement.
Supplementary deed/Agreement shall be executed in any change in the contribution occurs
As per Sec 23(1) of the LLP Act, 2008, the profit sharing pattern shall be governed by the LLP Agreement and shall not be related to the contribution of the partners.
We need to pay stamp duty on addition in contribution as per the prescribed stamp act of the relevant state.
E form LLP-3 is require to file
Nothing mentioned in LLP Act 2008 or LLP Rules 2009, there is no time limit as such for bringing in the contribution by the partners of the LLP and shall be governed by the provisions of the LLP Agreement.
There is no such specific restrictions on the withdrawal of the contribution by the partners as per LLP Act,2008 and LLP Rules,2009Â and is guided by the provisions contained in the LLP Agreement.
As per Sec 24(5) of the LLP Act, 2008, the amount of loan shall be liable to be repaid to the respective partner in the event of his cessation (removal, resignation, death etc. as a partner of the LLP.
In the event of the LLP Agreement being silent about the profit sharing pattern, it shall then be as prescribed in the First Schedule to the LLP Act, 2008. The First Schedule prescribes that in the absence of any express provision in the LLP Agreement, the profits shall be shared equally among all the partners
As per Sec 32(2) of the LLP Act, 2008, for the contribution in any form other than cash, the monetary value of the contribution shall be accounted for and disclosed in the LLP Accounts.
The procedure for increase in the contribution shall be in accordance with the provisions contained in the LLP Agreement. The steps involved are as follows: Check whether the LLP agreement contains a clause for, and procedure for such an increase in contribution. If it contains a clause therein, to modify the LLP agreement prescribed in the LLP Agreement for modification of the Agreement for: a) Inclusion of a clause for increase in contribution b) Actual increase in contribution
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