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The Tax Publishers Limited Liability Partnership--LLP Agreement All About LLP Agreement CA. Deepak Harwani A Limited Liability Partnership agreement is an agreement between the partners of a LLP defining the rights and duties of all the partners towards each other and towards the firm. The Learned Author provides a brief overview of the LLP Agreement. 1. Introduction A Limited Liability Partnership agreement is a written agreement between the partners of a Limited Liability Partnership formed under LLP Act, 2008 defining the rights and duties of all the partners towards each other and towards the firm. LLP Act, 2008 constitute 81 sections and 4 schedules. Further, in order to file LLP agreement, LLP Rules 2009 has prescribed certain forms to be filed with MCA . 2. Importance of LLP Agreement (i) Such agreement is complete guide to efficiently run a Partnership firm (ii) The well structured agreement marks obligation for the partners & avoid mutual disputes in the future. (iii) Act as an important factor for decision making in cases such as addition/replacement of partners or change in profit sharing ratios. 3. Contents of A LLP agreement A LLP agreement should contain an introductory section defining the terms mentioned or used otherwise in the drafted agreement for clear understanding of the users. Further such other contents include: (i) Name The name mentioned in the agreement shall end with Limited Liability Partnership (LLP) as per the provisions of the LLP Act, 2008. (ii) Date of the agreement Every LLP agreement should be executed within 30 days from the date of incorporation of such Limited liability partnership. (iii) Parties to the agreement A LLP agreement must specify the parties to the agreement which will be referred as partners to the firm. The contract can be formed between all partners of LLP or between LLP & partners. (iv) Business of LLP The agreement should have clause for the business which will be carried out by the LLP, which shall be in accordance with the business activity mentioned in incorporation document approved by MCA. (v) Duration of LLP The duration of the LLP can be time based i.e specifying the tenure upto which firm will carry out it's operations or can be object based i.e clause mentioning the object on completion of which firm will be dissolved. (vi) Maintenance of accounts & auditing provisions The agreement should contain the clause regarding maintenance of books either on cash or accrual basis & also include the manner by which such records & other related documents will be stored & audited. (vii) Other Mandatory Clause SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Limited Liability Partnership--LLP Agreement

All About LLP Agreement

CA. Deepak Harwani

A Limited Liability Partnership agreement is an agreement between the partners of a LLP defining the rights and duties of all the partners towards each other and towards the firm. The Learned Author provides a brief overview of the LLP Agreement.

1. Introduction

A Limited Liability Partnership agreement is a written agreement between the partners of a Limited Liability Partnership formed under LLP Act, 2008 defining the rights and duties of all the partners towards each other and towards the firm. LLP Act, 2008 constitute 81 sections and 4 schedules. Further, in order to file LLP agreement, LLP Rules 2009 has prescribed certain forms to be filed with MCA .

2. Importance of LLP Agreement

(i) Such agreement is complete guide to efficiently run a Partnership firm

(ii) The well structured agreement marks obligation for the partners & avoid mutual disputes in the future.

(iii) Act as an important factor for decision making in cases such as addition/replacement of partners or change in profit sharing ratios.

3. Contents of A LLP agreement

A LLP agreement should contain an introductory section defining the terms mentioned or used otherwise in the drafted agreement for clear understanding of the users. Further such other contents include:

(i) Name

The name mentioned in the agreement shall end with Limited Liability Partnership (LLP) as per the provisions of the LLP Act, 2008.

(ii) Date of the agreement

Every LLP agreement should be executed within 30 days from the date of incorporation of such Limited liability partnership.

(iii) Parties to the agreement

A LLP agreement must specify the parties to the agreement which will be referred as partners to the firm. The contract can be formed between all partners of LLP or between LLP & partners.

(iv) Business of LLP

The agreement should have clause for the business which will be carried out by the LLP, which shall be in accordance with the business activity mentioned in incorporation document approved by MCA.

(v) Duration of LLP

The duration of the LLP can be time based i.e specifying the tenure upto which firm will carry out it's operations or can be object based i.e clause mentioning the object on completion of which firm will be dissolved.

(vi) Maintenance of accounts & auditing provisions

The agreement should contain the clause regarding maintenance of books either on cash or accrual basis & also include the manner by which such records & other related documents will be stored & audited.

(vii) Other Mandatory Clause