Change of Partnership Deed
Changes in the partnership deed drafted by experts from EOB.
Fee: Rs. 2000 (All Incl).
Want us to get in touch?
Partnership deed and change
While the LLP agreement can be changed anytime, it’s the basis on which the partnership is defined, and entire partnership is governed by the terms laid down in this document. The partners must abide by the clauses laid out in the agreement. Any changes to the agreement should on a mutually acceptable basis amongst the partners. Any change to the agreement is done through a supplementary agreement. This is executed by making a stamp duty payment. The changes made must be communicated to the Registrar of Firms if the firm is already registered.
Some of the Possible Reasons of change in Partnership Deed
Like any other company, an LLP also has to undertake only those businesses that are included and specified in the agreement. In the event that the new business activities must included or changed, the agreement has to be changed to include the said changes. The revised agreement can include new activities or delete redundant activities of the business.
As the business grows so does the need for capital. Since it may not be possible for partners to contribute equally at all times, the agreement may have to be changed from time to time depending on the infusion of capital and the redefined profit-sharing ratio based on each partners contribution. To apply this change a supplementary deed will have to be prepared.
Any changes in the roles and responsibilities of the Partners will need to be incorporated in the agreement to ensure clarity and transparency in the partnership. Any such changes will require a change in the agreement.
As the business progresses, there may be a need to include a few clauses that are relevant to the business. These maybe mutually accepted terms of businesses amongst the partners. Such changes will also need to covered in the agreement as when such changes are made.
THE PROCEDURE
Procedures to modify Partnership Deed
- Discussion and consultancy for required changes
- Collection of basic Information & documents
- Drafting of the supplementary deed
- Review and provide deed after signature
- Payment of required Stamp Duty
- Notary on the signed supplementary deed
FREQUENTLY ASKED QUESTIONS
Explore Change of Partnership Deed
How is the supplementary agreement executed?
The deed is drafted and presented for approval to the partners. On approval, the applicable stamp duty is paid for the agreement. The agreement is then notarised and signed by all partners to approve the changes.
Can I change the business activities of Partnership firm?
Yes you can. A supplementary deed will have to be drafted and mutually agreed by the partners. The procedure for any change is to draft a supplementary deed.
When will the changes by supplementary deed be effective?
If a partnership deed is registered, the certificate of modification must be obtained after execution. The changes will however come into effect after the signature of the partners and the agreement being notarised.
Should the change in constitution of partnership be notified to RoF?
Depends on the earlier process. If the original partnership deed was registered with RoF, the modifications or changes will also have to be notified to the RoF on execution.
Can the place of business be changed?
For any change, a supplementary partnership deed has to be executed.
Can the name of the partnership firm be changed?
Yes. It can. Again with mutually acceptance of all partners. On completing the change of name, the PAN card for the firm will have to be updated. The change o fname should also be intimated to all authorities where the name is registered.
FROM BLOG
Helpful Resources
