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Change Partner Profit Ratio

Partners of LLP can change profit ratio among then either by transferring among them along with the liability to contribute to the capital or profit share right alone without changing partners contribution.

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Overview – Change Partners Profit share Ratio

Partners of LLP can change profit ratio among then either by transferring among them along with the liability to contribute to the capital or profit share right alone without changing partners contribution.

Partners in an LLP may agree among then to change present profit ratio. It may to effect change in profit ratio alone or change contribution liability alone with profit ratio.

In both case LLP need to follow procedures in the LLP agreement. Usually, with the consent of partners, LLP can change profit ratio by an amendment to LLP agreement.Since, proft right in an LLP is a transferable commodity, proper assignment/transfer document need to be executed to effect transfer of profit ratio to another partner.

Based on transfer document, LLP need to make necessary changes in the LLP agreement and file amended document with Registrar of Companies  

 

Change Partner Profit Ratio – Requirements


Procedures for Changing Profit Ratio


LLP Agreement Terms and Conditions

Before effecting transfer among the partners (profit ratio), terms and conditions of LLP agreement regarding transfer of rights among the partners and procedures taken in to consideration.

Transfer Document

In the absence of such clause, partner can transfer with the consent of all other partners by executing transfer deed.

LLP Agreement amendment

After executing transfer deed, LLP agreement need to be amended to reflect the changes and a copy of the amended LLP agreement shall be filed with ROC

Documents Required


The documents required for effecting transfer among the partner are present LLP agreement, executed transfer deed among the partners.


    LLP Rights Transfer Deed

    Subject to LLP agreement, partner transferring right to another partner shall execute transfer deed

    LLP Agreement Alteration

    After executing transfer deed, change LLP agreement to reflect the tarnsfer

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