An alteration to the contribution in an LLP involves increasing the capital of each partner. The terms and amounts of contribution in the LLP are stipulated by the LLP agreement, and any adjustment to the contribution amount necessitates a modification to the LLP agreement.
LLP partners have the flexibility to alter their profit-sharing ratios either by transferring both the liability to contribute to the capital and the profit share rights among themselves or solely by adjusting the profit share rights, without necessitating changes to the partners’ contributions.
The removal of an LLP partner necessitates the submission of Form 4 to the ROC for updating the records with accurate details. Since the partner’s removal involves changes to the LLP Agreement, Form 3 is concurrently filed along with the updated LLP Agreement.
With the agreement of existing partners, an LLP has the option to include a designated partner or partner. Following this, the LLP can proceed by submitting an application via Form 4 and presenting the revised LLP Agreement through Form 3 to the Registrar of Companies (ROC) for approval.