LLP Form 3 Filing
Limited Liability Partnership (LLP) has gained a lot of popularity in India in a very short time due to the reasons that first is its flexible structure and second is limited liability protection. It is essential to follow specific regulations within an LLP, as doing so assures that the LLP operates within a legal framework and maintains transparency.
An important aspect of its functioning also includes LLP Form 3, which records the initial LLP agreement and reports all subsequent changes to it. Filing this form is considered very important because it is necessary to maintain accurate and updated information with the company registrar.
This article brought to you by Blacktie Legal Services India LLP is a comprehensive guide to LLP Form 3 in which its significance, purpose, filing procedure and other key aspects have been explained in detail.
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What is LLP Form 3 ?
LLP Form 3 is officially known as “Information regarding Limited Liability Partnership Agreement and changes, if any, made thereto.” This form is considered a mandatory filing under the Limited Liability Partnership Act, 2008. Basically this form is used when the initial LLP agreement is registered or all changes after the agreement have to be reported.
Purpose of LLP Form 3
The primary purpose of LLP Form 3 is to ensure that accurate and up-to-date information about your LLP agreement is available to the Registrar of Companies (ROC). This LLP agreement outlines the rights, duties and responsibilities, profit-sharing ratio of all your partners, and the manner in which the LLP will be managed. After filing Form 3, the LLP ensures that any changes made to the terms of the agreement are legally recognized.
Filing LLP Form 3
When to File LLP Form 3
- Initial Agreement: The initial LLP agreement should be filed within 30 days of the incorporation of LLP as it is very essential to formalize the formation and operational structure of the LLP.
- Subsequent Changes: Form 3 should be filed within 30 days to inform about any amendments made to the LLP agreement after the initial filing.
Required Documents and Information
To file LLP Form 3, you need the overall information of your LLP agreement, which we have mentioned below to make it easier for you to fill this form:
- LLP Details: LLPIN (LLP Identification Number), Name, Address and all other information which is commonly used while filling the form.
- Partners’ Details: Names of all your partners and other relevant information.
- Agreement Details: Specific clauses of the LLP agreement include the profit-sharing ratio, rights and duties of the partners.
Changes (if any): Overall explanation of any changes to the original agreement of LLP.
Steps to File LLP Form 3
Prepare the Agreement: Prepare the Memorandum of LLP Agreement as it contains information about the objective of the LLP, essential terms, rights and duties of the partners, profit and loss sharing ratio and management of the LLP.
- Digital Signatures: All partners have to submit their electronic signatures for the prescribed posts. Because it is essential to have it to file the form online.
- Login to MCA Portal: Log in to the website designed by the Ministry of Corporate Affairs (MCA) using the partner’s credentials.
- Fill in Form 3: Fill the form with correct information as per the drafted agreement. You ensure that all fields marked as required are completed.
- Attach Documents: Attach a copy of your LLP Agreement and copies of all other documents to the form.
- Sign and Submit: Use a digital signature to sign and submit Form 3 so that this form can be submitted online.
- Acknowledgement: If the submission procedure is completed successfully, the user will receive the original acknowledgement receipt. And you keep it with you for further use as your proof in future.
Penalties for Non-Compliance
Failure to comply with the filing process of LLP Form 3 can lead to stringent penalties, so it is advised to follow the law. Understanding these penalties underscores the importance of timely and accurate filing:
Late Filing Fees: Any person who fails to submit Form 3 within the given time is charged with late filing and the fee increases with time. At present the current fee payable till the time of its formation is ₹100 per day.
Legal Consequences: Persistent failure to meet these requirements attracts prosecution against the LLP, and some partners face losing the chance to engage in other businesses.
Key Considerations
Accuracy and Completeness
It is very important for you to ensure that the information entered in the LLP Form 3 is accurate and complete as any discrepancy or omission can lead to penalties or legal issues. Therefore, it is very crucial that you first cross check all submitted information.
Time Limit for Filing Form 3 LLP
If you want to protect yourself from any kind of penalty, then you have to pay special attention to the time limit for filing Form 3 LLP. The initial LLP agreement has to be filed within 30 days, and any changes have to be informed within 30 days.
Professional Assistance
Due to the numerous and vast variety of sections for legal compliance, it would be best to consult those who are experts in this area. Thus you can choose Blacktie Legal Services India LLP who can help you in drafting LLP agreement and filing form 3 in a very professional manner without any hassle.
Conclusion
It is mandatory for all LLPs to file LLP Form 3 which proves instrumental for the daily functioning of the LLPs in India. It also ensures that the LLP agreement is registered correctly and that whatever changes are required are formally processed. So it is clear that once you understand the filing process, time limit aspects and professional help, your LLP will not face any penalty, and they will be able to run a smooth business by following all the legal procedures.
Blacktie Legal Services India LLP draws its strength from the desire to serve the need of enhancing specialist guidance as you set your LLP for compliance support.
To get more information or legal help for filing the LLP Form 3 and other legal concerns of LLPs, aspiring clients can always contact Blacktie Legal Services India LLP. Our enthusiastic professionals show you the best ways to deal with legal compliance issues without much hassle.
What we can offer ?
LLP Form 3 itself is a government form used for filing information about a Limited Liability Partnership’s (LLP) agreement blacktie help you in this process by different way like-
Filing Initial LLP Agreement: When a new LLP is formed, its agreement outlining the rights, duties, and profit-sharing structure needs to be filed with the Registrar of Companies (ROC) using Form 3.
- Reporting Changes in LLP Agreement: If there are any modifications made to the existing LLP agreement, like adding or removing a partner, changing profit-sharing ratios, or revising contribution details, these changes need to be reported through Form 3 within 30 days.
So, the Blacktie Legal Services India LLP offer services related to LLP Form 3 would be to assist with drafting the initial LLP agreement or reviewing and updating the existing agreement. These services could be provided by lawyers, chartered accountants, or company secretaries.