Change LLP Contribution
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.
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Overview – Increase Capital or Contribution of LLP
Easiest way of meeting capital requirement in an LLP is increase of contribution limit of each partner in LLP. Since, contribution of partners are in and accordance by LLP agreement, any increase in contribution of partners capital may amount to alteration of LLP Agreement.
Many, LLP partners profit share is linked with contribution and any change in the the contribution have impact on profit share. If LLP is increasing the contributions of each proportionality to the present contribution, simple amendment to partners contribution will address issue.
But if some of the partners contribution is increased and others not affected, and contribution have direct relation with partners profit, them before making such changes, till the date partners accounts need to be settled and necessary entries need to be made in partners account.
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