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Limited Liability Partnership (Third Amendment) Rules, 2023

LLP amendment Rules 2023

Introduction:

Keeping up with regulatory changes is crucial for businesses, and the Limited Liability Partnership (LLP) landscape is no exception. The recent Limited Liability Partnership (Third Amendment) Rules, 2023, introduce significant updates, especially regarding the maintenance of partner registers and declarations of beneficial interest. In this blog post, we’ll delve into the key amendments and their implications for LLPs.

Date of Notification– 27th October 2023

Date of Enforcement – 27th October 2023

Applicability: Applicable to all LLP’s registered under the Limited Liability Partnership Act, 2008.

Key Amendments:

Maintenance of Register of Partners by every LLP (Rule 22A):

LLPs are now mandated to maintain a register of partners (Form 4A) from the date of their incorporation.

Existing LLPs must comply with this requirement within thirty days from the commencement of the amendment.

The register must include detailed particulars for each partner, encompassing personal information, dates of partnership, contribution details, and any other relevant interests.

The register of partners shall be kept at the place where registered office of the LLP is located.

Further, LLPs are mandated to update the register within seven days of any alterations in partner details. This covers changes in the contribution amount, modifications in the partner’s name or details as outlined in the LLP agreement, and instances of cessation of partnership interest.

In cases where rectifications are necessitated by orders from competent authorities under any law, the LLP is obligated to reflect these changes in the register.

Declaration of Beneficial Interest (Rule 22B):

As per this rule, Registered partners (those listed in the register of partners) without beneficial interest must file a declaration (in Form 4B) within thirty days of their inclusion in the register. They are also required to update the LLP within thirty days of any change.

Must Read: LLP ROC Filing Due Date (Check Out)

Beneficial partners (those with an interest but not listed in the register) must file a declaration (in Form 4C) within thirty days of acquiring such interest. Likewise, any modifications must be communicated within the specified timeframe.

LLPs are responsible for recording received declarations in the register of partners and also return (in Form 4D) shall be filed with the Registrar within thirty days of receiving a declaration, accompanied by the requisite fees.

Designated Partner Responsibility:

Every LLP must designate a partner responsible for providing information on beneficial interests. This information should be filed with the Registrar using Form 4.

Until a designated partner is specified, every partner is deemed responsible for these obligations.

Conclusion:

In adapting to these amendments, LLPs not only ensure compliance with the latest rules but also enhance transparency in their operations. Staying informed about the nuances of partner registers and declarations of beneficial interest is essential for LLPs aiming for seamless governance and regulatory adherence.

DOWNLOADS: Notification | Form 4A | Form 4B | Form 4C

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