LLP Form-3 Filing

Introduction

LLP or Limited Liability Partnership form 3 is used for filing of LLP agreement or making amendment in already existing LLP agreement. LLP form 3 should be filed within 30 days of incorporation of LLP or change in LLP agreement. Form 3 includes the roles and responsibilities of each partner, capital contributions and other provisions essential for governing the partnership. If you fail to file this form on time there are several penalties. To get more detail related to form-3 filing, read this article in detail.

What is LLP Form-3?

LLP form 3 is a webform registered with MCA on its portal. LLP form 3 simplifies the process of making changes related to LLP in LLP agreement with the concerned Registrar of Companies (RoC). This form is used for two main purposes and they are:

• Part A - Application for filling information with regard to LLP Agreement
• Part B - Application for filing information with regard to change in LLP Agreement.

While filing form 3 ensure that the DSC attached in the webform is duly registered on MCA portal against the DIN/DPIN/PAN/Membership Number. Remember, in case of changes in LLP Agreement, filling of form 3 shall not be allowed if there is any payment of fee pending for Form No. 4.

Information Required to fill form-3

There is several information required to fill the form-3. This information is divided into 3 sections. The basic details are mandatory irrespective of the purpose. However, part A is filled for initial LLP Agreement filling while Part B is used for amendment in existing LLP Agreement. This information includes:

Basic Details:

• Purpose of filing form
• LLPIN (Limited Liability Partnership Identification Number)
• Name of LLP
• Jurisdiction of Police Station
• Email Id

Part A:

• Place at which the Initial Agreement is made
• Date of Agreement (DD/MM/YYYY)
• Date of Ratification, if initial agreement was made prior
• Business Activities Carried out by LLP
• Total Number of partners
• Detail of each partner
• Profit Sharing Ratio (in %)
• Total Monetary Value of Partner’s Contribution

Part B:

• Date of modification of the agreement (DD/MM/YYYY)
• Number of amendments/changes made in LLP agreement till date
• SRN of Form 4 or Form 5 of last one year through which notice of change/amendment in the LLP agreement has been filed with the Registrar
• Whether change in agreement is on account of
• Details of change in business activity
• Description of business activities, after change

Fees for filing Form-3 of LLP

The fee for filing form-3 of llp depends on the contribution partners have made during the incorporation. Following is the table with detail fee structure:

Due Date and Penalty for not filing MCA LLP form-3

The due date for filing form-3 is within 30 days after the incorporation of the llp. There is a certain late filing fee for llp form-3. The penalty depends on the capital contribution and the period of delay. The detail penalty structure is given below:

Why is filing of form-3 is crucial?

For LLP operations, the LLP agreement acts as a backbone. This agreement ensures that all partners are on the same page with respect to their roles, duties, and financial rights. By filling the LLP Form-3 or making changes in it can provide the legal structure that safeguards the interest of all partners by making the agreement official and enforceable in the court of law.

There are a few reasons that tell us why filling the LLP form-3 is crucial and they are as follows:

• Legal Recognition of the LLP Agreement: If you fill the LLP Form-3, it becomes a legal document only if it is acknowledged by the MCA. Without MCA, the agreement between the partners exists in private only and makes it harder to enforce in court, if issues arise.
• Compliance With MCA Requirements: If you fail to file an LLP Form-3 within a given or stipulated period, it will be considered as a violation of the LLP Act, 2008. This can also result in financial penalties and in extreme cases legal complications for the LLP and its partners.
• Clarity in Roles & Responsibilities: Every partner's role, duties, and responsibilities are clearly defined and legally recorded only if they fill the LLP Agreement through form-3. This reduces misunderstandings between partners or reduces conflicts and disputes.
• Taxation & Financial Benefits: Since LLPs are taxed differently than other entities and it's a well-defined and legally recognized agreement, it is essential for smooth tax filing. During audits or financial reviews by tax authorities, clear documentation of capital contributions and profit sharing ratio is critical in nature.

Why Bizfoc?

We at Bizfoc, provide a seamless, hassle-free experience guided by a team of experts. Our Professionals ensure that every step is completed efficiently and in full compliance with legal requirements. At Bizfoc, we specialize in handling all LLP-related filings, including Form-3, ensuring that your business remains compliant with MCA regulations.

Conclusion

Filing of form 3 is essential for LLPs Formation as it increases the mutual understanding between its partners. It ensures the agreement is legally recognized and enforceable. LLP Form-3 governs the relation between partners. You can safeguard your LLP from potential legal disputes and penalties by following the correct procedure and filing it on time. The fees for filing form-3 depend on the capital contribution and the due date for filing form-3 is just 30 days after the incorporation of the LLP.

Frequently Asked Questions (FAQs)