- All you need to know on LLP Form 3
- Introduction
- A Limited Liability Partnership (LLP) is a type of business structure that combines the features of a partnership and a limited liability company. It provides the benefits of a partnership, such as flexibility and the ability to manage the business collectively, while limiting the liability of partners to their respective capital contributions. In an LLP, each partner is not personally liable for the debts and obligations of the business. Instead, the liability is limited to the amount of capital contributed by each partner.
- To register an LLP, a document called the LLP Agreement must be prepared and filed with the Ministry of Corporate Affairs (MCA) in India. The LLP Agreement outlines the terms and conditions of the partnership, including the capital contributions of each partner, the roles and responsibilities of partners, and the profit-sharing ratios.
- LLP Form 3 is another important document that must be filed with the MCA within 30 days of registering an LLP. It is used to provide details of the LLP Agreement and the partners involved in the business. Failure to file LLP Form 3 on time can result in penalties and fines.
- In summary, an LLP is a type of business structure that provides the benefits of a partnership while limiting the liability of partners. To register an LLP, an LLP Agreement must be prepared and filed, and LLP Form 3 must be filed within 30 days of registration.
- Limited Liability Partnerships
- Partners of the partnership firms possess unlimited liability for their total debts and legal consequences. In this, their assets are liable to get attached to meet the debts and liabilities of the firm. However, the LLP formation solved this issue.
- LLPS have all the primary features of a partnership firm, except that of the unlimited liability of the partners involved and same legal entity status. Also, LLPs include legal existence and the identities are separate from their partners.
- LLP Meaning
- The Limited Liability Partnership Act was passed by the Parliament of India in the year 2008 for governing the LLP businesses in the country. The Section 2 of this law states that the LLP is a type of partnership which is registered under this act. Also, the LLP agreement refers to the written agreement between either the LLP partners or the LLP itself and its partners. This agreement tends to define the duties, liabilities, rights and powers of the partners in the LLP.
- Since this Limited Liability Partnership Act typically governs the LLPs in India, the Indian Partnership Act, 1932 provisions are not applicable to the Limited Liability Partnerships. They are only applicable to the traditional partnership businesses.
- Information requires to fill in LLP Form 3
- LLP Form 3 is available on site of MCA. It has the following content.
- · Date of LLP agreement
- · Place
- · Capital Contribution
- · Obligation to contribute
- · Mutual Rights and Duties of Partners
- · Restrictions, if any, on the partner’s authority
- · Procedure for calling, holding, and conducting meetings,
- · Details of the indemnity clause, if any
- · Clause for Admission / retirement / cessation/ expulsion / resignation of partner
- · Duration of Limited Liability Partnership
- · LLP Registration number
- · Mode of Contribution
- · DPIN of Signing Partner
- Required Documents to Furnish MCA LLP 3 Form
- LLP Form 3 is demanded to be furnished with the mentioned below list of documents.
- · LLP Agreement ( PDF Format )
- · Supplementary/ amended LLP ( PDF Format )
- · Other optional attachment
- When LLP Agreement Form 3 is filed by a Partners?
- Below is the information on when LLP Agreement Form 3 must be filed by partners in an LLP.
- · At the time of changing LLP Name
- · Amendments in the Partner’s rights and responsibilities
- · Admission or retirement of any Partner in an LLP
- · Change in the LLP Address
- Penalty for Late filing of LLP Form 3
- Within 30 days after the LLP’s incorporation or at the time of any changes in an LLP, a copy of the signed agreement must be filed with the Registrar of Companies using Form 3. If you are unable to file the document within the specified time, you will be charged a penalty of INR 100 per day, with no upper limit.
