Any constitutional changes must follow the LLP Act of 2008's strict form prerequisites. Form 4 must be filled out each time a partner is appointed, excluded, or their name, address, or classification changes.
The LLP Act of 2008 mandates that forms—Form 4 and Form 3—must be submitted to make any changes to the LLP’s constitution. Form 4 must be filled out for each appointment, termination, and change in a designated partner’s name, address, or designation. This article includes details like “What really is Form 4 LLP?” Also covered is information on the Limited Liability Partnership Form 4.
LLP (Limited Liability Partnership): What is it?
A Limited Liability Partnership (LLP) is one in which some or all partners’ liability is constrained. It can therefore show characteristics of businesses and partnerships. The actions or negligence of one partner toward another partner in an LLP is not the responsibility or liability of any one partner.
Attachments to LLP Forms 3 and 4
Form 4: Letters of appointment, resignation, and demise note of notification with the death certificate
Form 3 – Amended LLP Agreement with the required State-approved stamp paper denomination.
The following forms are to be filed under specific circumstances:
- You should submit these forms individually if you merely wish to make changes to your nominee or designation.
- If you intend to complete simply Appointments or only Cessation, you should submit these forms as linked forms.
- If you need to complete both the Appointment and the Cessation forms, you should submit them as linked forms.
- You must file if you want to make an appointment, a cessation, a change to the nominee’s designation, or both.
Benefits of LLP (Limited Liability Partnership)
An LLP’s primary benefit is that it is less formal and easier to establish and run than other business entities.
- Comparing it to a company, it has a lower registration fee.
- LLP is comparable to a business body that exists independently from its partners.
- LLPs can be established with any minimum capital requirement.
- The LLP partners’ liability would be restricted to the amount of their agreed-upon contribution.
- There is no obligation for a mandatory audit.
- LLP’s yearly ROC compliance requirements are lower than those of a Private Limited Company.
- Due to the LLP’s adaptability in structure and operation, it is a good vehicle for venture capital investment and small businesses.
LLP Form 4: What is it?
After the partner’s admission, the LLP must submit Form 4 within the first thirty days after the admission date. The LLP Form 4 needs to be signed by the partner who was appointed. The newly placed partner’s statement of consent is required to appear on the form.
A certificate from a company secretary, chartered accountant, or cost accountant who is currently employed must be sent with the form, testifying that the person has checked the form’s essential information and the limited liability partnership’s books and records and determined that everything is accurate.
You can determine when to file LLP Form 4 separately by keeping in mind the considerations listed below.
- These documents must be submitted separately if you only want to update the Designation or the Nominee.
- If you merely want to perform an appointment or cessation, submit the same forms as the linked forms.
- If both an appointment and a cessation must be filed, then these forms should be filed as related forms.
- You must file the following if you need to make an appointment, a cessation, and a change in the designee or designee’s designation:
- Together with the appointment or cessation, file Forms 3 and 4.
- Another Form 4, this time with a new nominee and designation.
Details and documents for LLP Form 4
- Authorisation to serve as a partner or designated partner (the form is required to be provided when a partner or designated partner is appointed).
- Evidence of cessation (Form must be provided for partner/designated partner cessation).
- Affidavit or any other documentation demonstrating a name change (obligatory for form is furnished for the amendment in the name of existing partner).
- When a corporate body is named as the appointed partner, a copy of the resolution on the letterhead of the same corporate body appointing it as a partner in the proposed LLP, as well as a copy of the resolution or authorization of this corporate body, in fact on the letterhead stating the name and address of the person nominated to function as the nominee or designated partner on its grounds must be sent (when the form is submitted for the body corporate’s appointment as a partner or the body corporate’s nominee’s amendment, it is required).
- Any supplementary information will be provided as an additional attachment.
LLP Form 4 Filing
Every appointment, termination, and amendment to a designated partner’s name, address, or designation requires the submission of Form 4. At the same time, paying attention to how these documents are submitted is essential. Additionally, there are situations where we must submit forms MCA LLP 3 and MCA LLP 4 separately, and there are others where they must be submitted together as connected forms.
Government Fee for the Admission of Partner MCA LLP Form
The following is indicated as the government charge for submitting Form 4 to admit a Partner in an LLP:
- Limited Liability Partnership’s maximum contribution is Rs. 1,000,000 -Rs 50.
- Limited Liability Partnership with a contribution that is greater than Rs 1,00,000 but not greater than Rs 5,00,000 – Rs 100
- Limited Liability Partnership with a contribution greater than Rs. 5,00,000 but not greater than Rs. 10,00,000-Rs. 150.
- Limited Liability Partnership with a minimum commitment of Rs. 200 and a maximum contribution of Rs. 10,00,000.
LLP Designated Partner Digital Signature
The LLP’s authorized partner must digitally sign the e-form. In cases where an e-form is submitted for the cessation of a partner or a designated partner, the individual signing the form must be different from the person whose name is being submitted. The DP’s designated partner identification number (DPIN) should be included.
Form 4 Certificate for LLP
By digitally signing the e-Form, a chartered accountant (in full-time practice), cost accountant (in full-time practice), or company secretary (in full-time practice) must attest to the authenticity of the e-form. If the professional is a fellow or associate, select the appropriate category.
If the individual is a chartered accountant (in full-time practice) or cost accountant, enter their membership number here (in whole-time practice). In the case of a company secretary who works full-time as a practising professional, you should put in the number of their certificate of practice.
Conclusion
Form 4 must be submitted for each designated partner or partner’s appointment, termination, and modification of name, address, or designation. Before Form 4 can be sent in, it needs to have its signature authenticated by the Designated Partner. Visit Vakilsearch to get more detailed information and assistance about LLP agreement creation.
Read More:
