Change in Agreement

Alteration of LLP Agreement

Agreement of the Limited Liability Partnership (LLP) is its charter, similar to Memorandum of Association and Articles of Association of a company. In the agreement, nature of business activities, rights, duties, and obligations of partners are mentioned.

Changing an LLP agreement is very easy.

Step 1– A resolution needs to be passed to revise the LLP agreement.

Step 2 – Form 3 is to be filed with the Registrar within 30 days of passing the resolution.

The following are the situations where LLP needs to amend the LLP Agreement:

1.Change of LLP Name
2.Change in management rights
3.Change in economic rights
4.Delegation of management rights of an LLP from partners to a manager
5.Addition of new activities in the LLP subject to incorporation documents
6.Tax planning
7.Fixing remuneration for working partners by LLP agreement

The clauses in LLP agreement can be amended by following procedures in the LLP Agreement and by executing an amendment agreement in accordance to LLP Agreement, LLP Act and Rules. After amendment of LLP agreement, LLP shall file one copy with Registrar of Companies.