Foreign LPLs may create an office in India by submitting Form 27 containing information relating to the inclusion of foreign LLP, details of the EP/partner of this foreign LLP and details of at least two representatives authorized to comply with LLP regulations. Yes, an existing partnership company can be converted into an LLP in accordance with the provisions of section 58 and Schedule II of the LLP Act. Form 17 must be submitted at the same time as Form 2 for such transformation and inclusion of LLP. Each LLP is required to submit “Solvency Accounts- Solvency” in the prescribed form 8 of LLP, which contains a statement on the creditworthiness of LLP by the designated partners, as well as information on the asset and liability account as well as the LLP profit and expense account. This form must be submitted annually by LLP. The authorized name of the LLP is valid for a period of three months from the date of approval. If the proposed LLP is not included in this time frame, the name has expired and is available to other applicants/LLP. Please note that there is no provision for name renewal. Yes, the conversion request (form 17 or 18) may be rejected by the Registrar if this is not appropriate with eForm 2. It is generally preferable to implement an LLP agreement when the partnership is registered with Companies House. At this point, members are best able to reach agreement on what they expect and receive from the company. While you may intend to return to work at a later stage, there can never be a good opportunity and, until then, members` expectations and attitudes towards business are quite different.
It would be much less easy to agree on the content of an LLP agreement. For LPLs, there is no legal equivalent of the statutes required for limited companies. There is no legal obligation to enter into a simple limited partnership agreement and an LLP can be implemented without agreement. However, the launch of a partnership agreement by a new LLP is a very common and generally good recommendation. In order to benefit from tax benefits, guidelines for the availability of LLP names can be taken into account in the development of LLP agreements, which are read in Section 15 of Rule 18 of the 2009 LLP rules. Our professionally developed LLP Model Agreement offers various potential improvements to the standard legal position and helps small LLP members protect their respective interests and investments.
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