What is change in main Object of LLP?
Change is the main objects means to change the existing main business activities of the LLP due to any reasons. Main business activities mean those business activities which a LLP want to do after its incorporation. LLP can do business activities which are mentioned in its LLP agreement and other ancillary activities in supporting with the main activities of the LLP.
Why we need to change the main business activities?
If the partners want to change the business completely.
In case of partners want to add a new product line in an LLP. Kindly note an LLP can carry on only similar business activities. Hence, if the new product line is not related to an existing business then a new LLP has to be incorporated.
If an LLP take over a firm which is carrying on different business activities.
In case the government authorities orders as a result of change in prevailing law.
Whenever such business activity is prohibited under any law.
Permissible Business Activity for a LLP?
As stated at the beginning, LLP can do any business activity that is legal in India. The permissible activities which require no prior approval include trading, manufacturing, service provider, professional services, etc.However, there are activities that are only allowed after obtaining a prior approval from authorities. These activities include finance, investment, insurance, stock exchange, merchant banker, banking, chit fund, NBFC, etc.
How to Change objects in LLP?
The LLP agreement contains a clause regarding LLP activity and procedures to be followed for changing the object. Based on the partners understanding, the supplementary agreement is prepared and requisite e-Form filed with respective Registrar of Companies to changes the object of LLP.