LLP agreement is the agreement which is done in between the partners of the LLP at the time of incorporation or after incorporation. In this agreement, various terms and conditions are written on which the partners of LLP will perform their rights and duties in the future and off course they can also be modified in the future. In simple words, It’s a road map of LLP.
Is it mandatory to file the LLP agreement with ROC?
Yes, it is mandatory for filing LLP agreement with ROC within 30 days of incorporation. We at Hoogmatic suggest you file LLP agreement as early as possible otherwise penalty will be imposed by ROC.
Content of LLP agreement
- Incorporation and commencement: Write whether a certificate issued by ROC and when the provision of LLP will be effective.
- Name and address of LLP: Write the Name of LLP and registered office address of LLP.
- Business activities of LLP: Write about what are the major and ancillary business activities will commence by LLP.
- Detail of partners and contribution in LLP: Write about the name and address of partners of LLP and what they are contributing in LLP.
- Duties and rights of partners in LLP: Write about the duties and rights of partners.
- Liabilities of partners: Write in detail what are the liabilities of partners.
- Indemnity of LLP: What are situations in which LLP can indemnify through damages, loss, etc.
- Management and meetings in LLP: Write in detail about the management of LLP and how will meetings will be conducted and who will conduct all those meetings.
- Common seal of LLP: Write about the common seal of LLP.
- Admission and cessation of partners in LLP: Briefly describe the admission and cessation clauses of partners in LLP.
- Bank accounts: Who will manage banking of LLP.
- Remunerations of partners: Describe the remuneration of partners in LLP.
- Profit and loss sharing ration of partners in LLP: Highlight the profit and loss sharing ratio in LLP agreement.
- Loan to partners: Describe loan clause in LLP agreement.
- Miscellaneous provisions in LLP agreement: Briefly describe the other provisions which anyone wants to add to LLP agreement.