Increase Contribution of LLP

Expand your business & Encourage investors

During the course of business, LLP many need fresh capital to meet the enhanced requirements. In LLP capital infusion can be met by increasing partners contribution.

₹ 2499 + Actual govt fees
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Increase in Contribution
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Preparation of Documentation
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Preparation of Forms
We will prepare Run form, MGT 14 and INC 24
Submission of Final Forms
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What is increase in contribution?

The partners may introduce new capital or contribute to run the organization through Tangible, intangible moveable/immoveable property, contracts for services performed or to be performed, Agreement for contributing cash or property, Monetary contribution or Promissory Notes. So Increase in contribution means to contribute new capital in the LLP by existing partner or new partners.

Why we need to increase contribution in LLP?

We need to increase contribution in LLP due to the following reason:
* To expand the business,
* To introduce any new partner,
* To increase the business activities,
* Any other requirement as per the partners.

What is the Process to increase contribution in LLP?

E-Form LLP- 3 filed with the Registrar in a maximum of 30 days from the date of modification of LLP Agreement. Only amended LLP agreement, initial agreement and consent of partners is to be required to file in e-form-3.

When we can increase contributions in LLP?

A partner and designated partner of the LLP may increase contribution in the LLP at any time, whenever they feel the requirement of extra capital in the LLP or at the time of new partner or designated partner introduce in LLP, then the new person also contributes for LLP.

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Documents Required For Increase Contribution of LLP

Proprietor

  • PAN (Permanent Account Number) of all proposed directors (Self attested)
  • Identity Proof (Voter Id, Passport, Driving License) of all proposed Directors. (Self attested)
  • Latest passport size Photographs of all directors.
  • Address proof with Present address Mobile bill OR Telephone bill OR Electricity bill OR Bank Statement not older than 1 Month (Self attested)

One Person Company

  • PAN (Permanent Account Number) of all proposed Share Holders (self attested)
  • Identity Proof (Voter Id, Passport, Driving License) of all proposed ShareHolders (Self attested)
  • Latest passport size Photographs of all Share Holders.
  • Address proof with Present address Mobile bill OR Telephone bill OR Electricity bill OR Bank Statement not older than 1 month (Self attested)

Private Limited

  • Electricity Bill along with Rent Agreement OR Ownership proof and NOC

Public Limited

  • INC 14
  • INC 15
  • Projected Income and Expenditure Account
  • Grounds for making application

Partnership Firm

LLP

NGO

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KEY ASPECTS

Obligation to Contribute to Capital of LLP

As per the provisions of Section 33 of Limited Liability Partnership Act, 2008, the obligation to contribute to the capital of LLP by each partner shall be as per the subscriber sheet being filled by the Company to the Concerned Registrar of Companies at the time of the LLP Incorporation and the same amount shall be written in the LLP agreement which is filled by the Company to the Concerned Registrar of Companies.

When capital is required?

The capital is required for the expansion of the business it can be increased any time during the course of the business. Following are the reason when capital is required:
• At the time of appointment of the new partner
• For new technology
• For the expansion of business
• At the time of starting new projects
• Any other requirement for the development of business

Refund and Payback of LLP Contribution .

When a Partner resigns from the office of partner of LLP, As per Section 24 of the Limited Liability Partnership Act, 2008, he shall receive an amount equal to his capital contribution from the LLP upon such resignation.

Kind of Capital Contribution .

The capital contribution can be in kind as well as in form of money. The capital contribution can be in form of:
• Moveable property
• Immoveable property
• Intangible property
• Money
• Promissory notes, etc.

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Frequently asked questions

What are the documents required for change in contribution?

Supplementary deed/Agreement shall be executed in any change in the contribution occurs

What is the impact on the profit sharing pattern of the contribution of the partners?

As per Sec 23(1) of the LLP Act, 2008, the profit sharing pattern shall be governed by the LLP Agreement and shall not be related to the contribution of the partners.

Do I need to pay the stamp duty on the increased contribution?

We need to pay stamp duty on addition in contribution as per the prescribed stamp act of the relevant state.

Apart from the stamp duty, what is the government fee?

Rs. 50

Which E-form is required to file for increase in the contribution?

E form LLP-3 is require to file

What is the limit of time period for bringing in the contribution by the partners?

Nothing mentioned in LLP Act 2008 or LLP Rules 2009, there is no time limit as such for bringing in the contribution by the partners of the LLP and shall be governed by the provisions of the LLP Agreement.

What are the restrictions on the withdrawal of the contribution by the partners?

There is no such specific restrictions on the withdrawal of the contribution by the partners as per LLP Act,2008 and LLP Rules,2009Â and is guided by the provisions contained in the LLP Agreement.

When shall the amount of contribution be liable to be repaid to the partners?

As per Sec 24(5) of the LLP Act, 2008, the amount of loan shall be liable to be repaid to the respective partner in the event of his cessation (removal, resignation, death etc. as a partner of the LLP.

How will the profit sharing pattern of the partners be determined in the event of the LLP Agreement being silent about the profit sharing pattern?

In the event of the LLP Agreement being silent about the profit sharing pattern, it shall then be as prescribed in the First Schedule to the LLP Act, 2008. The First Schedule prescribes that in the absence of any express provision in the LLP Agreement, the profits shall be shared equally among all the partners.

What are the guidelines for accounting and disclosure of the contribution in any form other than cash in the LLP Accounts?

As per Sec 32(2) of the LLP Act, 2008, for the contribution in any form other than cash, the monetary value of the contribution shall be accounted for and disclosed in the LLP Accounts.

What is the procedure for increasing the contribution by way of additional capital brought in by existing partners?

The procedure for increase in the contribution shall be in accordance with the provisions contained in the LLP Agreement. The steps involved are as follows: Check whether the LLP agreement contains a clause for, and procedure for such an increase in contribution. If it contains a clause therein, to modify the LLP agreement prescribed in the LLP Agreement for modification of the Agreement for: a) Inclusion of a clause for increase in contribution b) Actual increase in contribution

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