admission of a new partner + increase in capital of llp

Dear All,


We want to admit a new partner in LLP whoes profit sharing ratio is fixed and does not depend upon his capital contribution (As he is admitting late).


The Capital clause in LLP agreement says that the Capital of the LLP should be Rs. 1,00,000 (which is already contributed by the exising Designated Partners) which is now going to be incresed with the admission and contribution of the new partner.


Secondly, His profit sharing percentage is fixed and it will not depend upon his Capital Contribution whereas the agreement says that the PSR will depend upon the contribution of the Partners.


My qustion is "Do we need the change the LLP agreement or a MOU will be sufficient between the new partner and the LLP?"


You have to make necessary change in the LLP agreement.


You'll have to amend the LLP Agreement. An agreement between the partners is not sufficient as you are doing something that expressly affects the LLP and how its constituted.




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