Change in Activity

CHANGE IN ACTIVITY

As the LLP is a creation of Law, the changes in it can only be done by the procedures established under law. Apart from the LLP Act, 2008 and the rules framed thereunder, the primary document which guides and prescribes the method of bringing in a particular change into LLP is its agreement. Needless to mention that the LLP agreement to be enforceable, must be executed on non-judicial stamp paper of appropriate value as per the relevant state government rates. The LLP act further prescribes that the agreement must be registered with the ROC within 30 days of its creation or changes.

LLP can change its business activity by following the below mentioned procedure:

1. Check whether the proposed business is allowable to be carried out by LLP.
2. Take approvals, if any applicable under other laws.
3. Change the activity as provided in the LLP Agreement or if the agreement is silent, with the consent of all the Partners.
4. Pass the Board resolution.
5. Sign and execute supplementary LLP agreement for change in business activity.
6. File Form LLP 3 with ROC within 30 days of execution of LLP Agreement.