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Actual initial contribution is not same as mentioned in LLP Agreement

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Amlan Ranjan Dutta

Business

104 Points Posted on 24 May 2021

In the LLP Agreement of an LLP, it is mentioned:

The initial contribution of the LLP shall be Rs. 1,00,000 (Rupees One Lakh only) which shall be contributed by the partners in the following proportions :

First Party : Rs. 50,000.

Second Party : Rs. 50,000.

But the actual initial contribution of the partners are:

First Party : Rs. 80,000.

Second Party : Rs. 20,000.

Is there any need to file Form-3 or ammend the LLP Agreement in this case? Is there will be any penalty?

Replies (2)

Quick Summary

This discussion addresses a discrepancy between the initial contribution stated in an LLP Agreement and the actual amounts contributed by partners. Although the total contribution remains the same, the proportions differ. The core question is whether this requires filing Form-3 or amending the LLP Agreement to ensure compliance and avoid potential penalties.