Limited Liability Partnership Firm may change it’sbusiness activity either by adding a few new activities or removing the existing activities. The Limited Liability Partnership may change itsobjective by following the procedure as laid down in the limited liability partnership agreement. Where the limited liability partnership agreement is silent on this matter, consent of all partners shall be required for changing the objective of the limited liability partnership.
In case there is no clause in the limited liability partnership agreement relating to change in the object the same can be made with the consent of all the partners of limited liability partnership.
a) Partner’s Meeting:
Partner’s Meeting must be called in a prescribed manner at a specified date. In case of change of Business Activity of an LLP Consent of all the partners is required tobe obtain.
b) Drafting of Supplementary Agreement:
In order to change the object clause of LLP, we need to draft a supplementary agreement. This agreement must be executed on the Stamp Paper as well as signed in front of the witness.
c) Stamp Duty on LLP Agreement:
LLP Agreement needs to execute on stamp paper. Value of stamp paper for LLP agreement depends on Capital Contribution. Below is table for LLP Stamp Paper Value.
|
LLP Capital Contribution |
Stamp Duty |
|
Upto Rs.100000 |
Rs.1,000 |
|
Rs. 1,00,001 to Rs. 2,00,000 |
Rs. 2,000 |
|
Rs. 2,00,001 to Rs. 3,00,000 |
Rs.3,000 |
|
Rs. 3,00,001 to Rs. 5,00,000 |
Rs.5,000 |
|
Rs. 5,00,000 & above |
Rs.10,000 |
d) Filing of Agreement with MCA:
Within 30 days from date of execution of the agreement it must be filed with the ROC in e-form-3. The E-form must be certified by a practicing professional like Chartered Accountant / Company Secretary / lawyer.
d) Penalty for Non Compliance:
In case form-3 is not filed within 30 days from the date of execution of agreement, late fee shall be levied. If the form is filed after the completion of 30 days then ROC will levy late filing fees of Rs. 100/- per day till the date of filing Form-3.
d) ROC Approval:
ROC will approve the form if the altered object and documents are as per the law. After receiving approval from ROC, an LLP can start new business activities.
However, in case the business activity is not as per the law, ROC has power to reject the form.