LIMITED LIABILITY PARTNERSHIP INCORPORATION AND KEY POINTS:
Limited Liability Partnership (LLP) Act came into force for most part, on 31st March, 2009 followed by its Rules on 1st April, 2009.
It is hybrid form which incorporates benefits of both partnership and companies. It has the following features:
1. Separate legal entity in the eyes of Law.
2. Cost of incorporation is very less.
3. Small Entrepreneurs can opt for LLP.
ADMISSION AND CESSATION OF DESIGNATED PARTNERS / PARTNERS.
An individual can be admitted to become a partner in the LLP with the consent of other partners of the LLP and in accordance with the provisions of (section 25) of Limited Liability Partnership Act, 2008.
In same manner Cessation of Designated Partner can take place after he gives Notice of his Resignation letter and respective Forms are filed for the same for the LLP.
FILING OF SUPPLEMENT LLP AGREEMENT:
For Admission of Partner/Designated Partner, Cessation of Designation Partner/Partner, e-Form 3 and e-Form both are required to be filed.
The rights and obligations of the admitted Partner/Designated Partner shall be determined vide agreement entered into the LLP and its other partners.
CHANGE IN DESIGNATION FROM PARTNER TO DESIGNATED PARTNER:
Refer below third question from the quick updates to understand on e-Form filing for change in Designation from Partner to Designated Partner.
Even LLP Agreement should be referred before filing e-Form, to understand the points drafted in the LLP Agreement.
Q.1 In Case of Admission / Cessation of Designated Partner / Partner is e-Form 3 and e-Form 4 both required to be filed?
Ans. Yes, e-Form 3 and e-Form 4 both are required to be filed for Admission / Cessation of Designated Partner / Partner.
Q.2 How will both e-Form 3 and e-Form 4 will be filed together for Admission / Cessation of Designated Partner / Partner ?
Ans. In Linked Form both the e-Forms will be filed together.
First click on linked Form, first attach Form e-Form 3, then e-Form 4 will be attached together and then both will be uploaded together.
Q.3 Which form is required to be filed in case of Change in Designation of Partner to Designated Partner ?
Ans. Only e-Form 4 is required to be filed in case of Change in Designation of Partner to Designated Partner.
Q.4 How much Stamp Duty is required to be paid on LLP Agreement ?
Ans. Stamp Duty is to be paid as per the Stamp Duty of the State.
Q.5 Is there any minimum Stamp Duty required to be paid?
Ans. If there is no Change in Contribution, no change in figure, then no additional Duty is required to be paid only Minimum Duty is required to be paid.
Ex: As per State of Maharashtra, minimum Stamp Duty is Rs. 500, So only Rs. 500/- duty is to be paid, if there is no change in Contribution.
Q.6 How can one pay Stamp Duty on LLP Agreement?
Ans. Stamp Duty can be paid through below link
One can even use Stamp Paper to pay the Duty.
Even Franking can be done through respective bank, to pay the Duty on the LLP Agreement.
Please refer all the relevant section, rules, notifications, amendments as applicable. The Author is not responsible for any losses incurred.
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