Llp - profit sharing pattern
This query is : Resolved
30 November 2015
Dear Sir/Madam
I want to incorporate LLP, where the client wants to have different profit sharing ratio, that means, at the time of incorporation one particular sharing pattern and while wounding up some other profit sharing pattern. Is this possible in LLP Agreement.
Pratik Shah
(Expert)
01 December 2015
Technically it is not possible, because Form will not accept different profit sharing ratio.
However, you can have one clause in LLP Agreement stating that
'In case of winding up, all partners are required to enter into Addendum/Supplementary Agreement, for revising Profit Sharing Ratio before closing/winding up of LLP.
So practically, when partners decides to wind up, they can enter into Supplement Agreement with 'new profit sharing ration' and once the Supplement Agreement is approved by ROC, LLP can apply for winding up.
I hope this will help.
However, you can have one clause in LLP Agreement stating that
'In case of winding up, all partners are required to enter into Addendum/Supplementary Agreement, for revising Profit Sharing Ratio before closing/winding up of LLP.
So practically, when partners decides to wind up, they can enter into Supplement Agreement with 'new profit sharing ration' and once the Supplement Agreement is approved by ROC, LLP can apply for winding up.
I hope this will help.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- Employee secondment
- IMS (import of goods) ITC related
- GST ITC as per notification 12/2023- central tax
- Urd purchase entry in tally prime
- Capital Gains Tax on Inherited Mutual Fund
- Positive Balance in RCM Liability/ITC Statement – Commercial Rent RCM – Guidance Required
- Form 144 TDS Return Validation Error – Mandatory Fields
- LLP audit and disclosure
- How do you manage client document collection and follow-ups in your CA/CS practice?
- Ito add credit side of bank
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
