Increase Contribution of LLP

Increase in authorized share capital
10000
Increase in Paid Up Share capital
7000
Increase in authorized & paid up capital
15000

Support

unlimited

unlimited

unlimited

Government Fees Included
Change in Capital
Form SH-7
Form PAS 3

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Documents Required for Increase Contribution of LLP

  • 1     Board Meeting for Increase in Authorized Share Capital
  • 2     Board Resolution for Increase in Authorized Share Capital
  • 3     Notice of EGM for Increase in Authorized Share Capital
  • 4     Certified True copy of Ordinary Resolution.
  • 5     Altered Memorandum of Association.
Process Involved 20%

Step 1

Calling of Board Meeting

Step 2

Board Resolution

Step 3

Calling of EGM

Step 4

Ordinary Resolution

Step 5

Form SH-7

Step 6

Approval

Calling of Board Meeting Issue notice in accordance with the provisions of section 173(3) of the Companies Act, 2013, for convening a meeting of the Board of Directors.

Resolution to get in-principal approval of Directors for Increase in authorised share Capital.

Holding Extra-ordinary General meeting (EGM) to get approval of shareholders, by way of Ordinary Resolution, for amendment in authorized share Capital clause of Memorandum of Association.

Pass the necessary Ordinary Resolution under section 61(1)(a) of the Companies Act, 2013, for increase in authorize share capital of the Company .

File form SH-7 within 30 days of passing of Ordinary Resolution with the concerned Registrar of Companies, with prescribed fees and along with following attachments as desired by section 64

After Approval of Form by ROC, Authorized capital will be Increased

Increase in Authorize or Paid Up Share Capital of Company

 

Process involved in Increasing Authorize Capital

1.  Authorization in Article is must for Increase

Company has to make sure that its Articles of Association contain a provision authorising it to increase its authorised share capital. 

2. Calling of Board Meeting  Issue notice in accordance with the provisions of section 173(3) of the Companies Act, 2013, for convening a meeting of the Board of Directors .

3. To Get in-principal approval of Directors for Increase in authorised share Capital.

4. Fix date, time and place for holding Extra-ordinary General meeting (EGM) to get approval of shareholders, by way of Ordinary Resolution, for amendment in authorised share Capital clause of Memorandum of Association .

5. To authorise the Director or Company Secretary to issue Notice of the Extra-ordinary General meeting (EGM) as approved by the board.

6. Issue Notice of the Extra-ordinary General meeting (EGM) to all Members, Directors and the Auditors of the company in accordance with the provisions of Section 101 of the Companies. 

7. Holding of General Meeting: Hold the Extra-ordinary General meeting (EGM) on due date and pass the necessary Ordinary Resolution under section 61(1)(a) of the Companies Act, 2013, for increase in authorize share capital of the Company .

8. Concerned Registrar of Companies (ROC) will check the E-forms and attached documents and will approve the increase in authorize share capital. 

 

Documents process

File form SH-7 within 30 days of passing of Ordinary Resolution with the concerned Registrar of Companies, with prescribed fees and along with following attachments as desired by section 64

a. Notice of EGM.

b. Certified True copy of Ordinary Resolution.

c. Altered Memorandum of Association.

 

Process involved in Increasing Paid Up Capital

File form PAS-3 for Allotment of Shares.

FAQ

As per Sec 32(1) of the LLP Act,2008, the partners may introduce capital or contribute to the organization in the following manner, or combination thereof ; • Tangible, moveable property • Tangible, immovable property • Intangible property • Contracts for services performed or to be performed • Agreement for contributing cash or property • Monetary contribution • Promissory Notes.
Supplementary deed/Agreement shall be executed in any change in the contribution occurs.
Nothing mentioned in LLP Act 2008 or LLP Rules 2009, there is no time limit as such for bringing in the contribution by the partners of the LLP and shall be governed by the provisions of the LLP Agreement..
There is no such specific restrictions on the withdrawal of the contribution by the partners as per LLP Act,2008 and LLP Rules,2009Â and is guided by the provisions contained in the LLP Agreement..
As per Sec 24(5) of the LLP Act, 2008, the amount of loan shall be liable to be repaid to the respective partner in the event of his cessation (removal, resignation, death etc. as a partner of the LLP..
As per Sec 32(2) of the LLP Act, 2008, for the contribution in any form other than cash, the monetary value of the contribution shall be accounted for and disclosed in the LLP Accounts..
The procedure for increase in the contribution shall be in accordance with the provisions contained in the LLP Agreement. The steps involved are as follows: Check whether the LLP agreement contains a clause for, and procedure for such an increase in contribution. If it contains a clause therein, to modify the LLP agreement prescribed in the LLP Agreement for modification of the Agreement for: a) Inclusion of a clause for increase in contribution b) Actual increase in contribution.

 

Contribution can be change in following circumstances; • Existing Partner mutually decided to induct the additional contribution in the LLP. • Admission of the new Partner • Cessation of any Partner • Any of the partner decides to change in contribution.
As per Sec 23(1) of the LLP Act, 2008, the profit sharing pattern shall be governed by the LLP Agreement and shall not be related to the contribution of the partners..
We need to pay stamp duty on addition in contribution as per the prescribed stamp act of the relevant state..
In the event of the LLP Agreement being silent about the profit sharing pattern, it shall then be as prescribed in the First Schedule to the LLP Act, 2008. The First Schedule prescribes that in the absence of any express provision in the LLP Agreement, the profits shall be shared equally among all the partners..