Purpose of Form LLP-3:
- Filing information with regard to the initial LLP Agreement: Used within 30 days of LLP incorporation for submitting details of the initial agreement.
- Intimation of any change in the existing Agreement: Whenever amendments are made to the agreement, Form LLP-3 is used to file these changes within 30 days of approval by partners.
Who Files Form LLP-3:
- Designated Partners of the LLP are responsible for filing this form with the MCA.
Types of Changes Requiring Form LLP-3:
- Changes in capital contribution: Addition or removal of capital by partners.
- Changes in profit-sharing ratio: Adjustments to how profits are distributed among partners.
- Admission, retirement, or removal of partners.
- Changes in the business activities of the LLP.
- Changes in the rights and duties of partners.
- Changes in the management structure of the LLP.
- Correction of any errors or omissions in the existing Agreement.
Benefits of Timely Filing Form LLP-3:
- Compliance with legal requirements: Avoids potential penalties or legal issues for non-compliance.
- Transparency and Public Records: Keeps stakeholders and the public informed about changes in the LLP’s governing document.
- Facilitates future transactions: Ensures accurate information is available for regulatory approvals and other business dealings.