Change in Profit Sharing Ratio
Change in Profit Sharing Ratio
₹
2,000/-*
₹
- Statutory Fees including additional fees or penalty in course of Filing of LLP Form 3 is not included in the above amount.
- Stamp Duty Payable on Supplementary Agreement is not included in above amount.
- Any advice given to the Client is only an opinion based on our knowledge of the Client’s particular circumstances.
- The client will be responsible for verifying the information contained in such returns and/or filings prior to approving/signing such return/filing.
- Fees Should be paid according to conversation held between the Legal Parivar Team and Client.
Change in Profit Sharing Ratio
The Limited Liability Partnership (LLP) operates under the regulations outlined in the Limited Liability Partnership Act of 2008. In contemporary times, the LLP structure is becoming increasingly favored over Private or Limited Company forms of business due to its simplicity and reduced regulatory requirements.
Limited Liability Partnership (LLP) Agreement is the 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.
Partners within an LLP can mutually decide to modify their existing profit-sharing ratios, either by altering the profit ratios alone or by adjusting both the contribution liability and profit ratios. In both scenarios, the LLP is required to adhere to the procedures outlined in the LLP agreement.
Typically, with the consent of the partners, the LLP can amend the LLP agreement to reflect the changes in the profit ratio. Given that profit rights in an LLP are transferable, the execution of a proper assignment or transfer document becomes essential to facilitate the transfer of profit ratios to another partner.
Subsequent to the completion of the transfer process outlined in the document, the LLP is obligated to make the necessary adjustments in the LLP agreement and subsequently file the amended document with the Registrar of Companies.
The time limit for filing of Form 3 with the Registrar is a maximum of 30 days from the date of modification of LLP Agreement.