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.
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
- STCG....................................................
- Supply through E-commerce Operators
- Sales return eway bill
- Relief u/s Section 89
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- TAN for Partnership
- STCG FOR GOLD ETFs
- STCG on ETF gold & silver
- Is it compulsory to File 10E if Income including Pension Arrears is below 12 Lakh for the F Y 25 26
- REGARDING GST LIABILITY/....
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
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
