Legal Limitations • LLP Act does not provide explicit borrowing limits • Borrowing must align with objects stated in LLP agreement • No public borrowing allowed like companies issuing debentures • Cannot accept unsecured public deposits from individuals • Legal action...

Legal Validity • LLP is recognized as a separate legal entity under law• It can own, acquire, and hold property including shares• LLPs are legally allowed to invest in private company shares• There is no restriction in the LLP Act on such ownership• MCA and SEBI do...

Drafting Supplementary Agreement • A supplementary LLP agreement must be prepared• It should clearly mention revised partner contributions• All partners must consent to the changes in writing• Agreement must follow format prescribed under LLP rules• Execution must be...

Permissibility under Law • LLP Act 2008 allows formation for any lawful business purpose • There is no restriction on forming LLP for single project • Objective must be clearly stated in the incorporation documents • Project-based LLPs are legally valid and recognized...

Annual Filing Requirements • LLP must file Form 8 for Statement of Accounts and Solvency• LLP must file Form 11 for Annual Return with RoC• Filing must be done even if there is no business activity• Both forms must be filed within prescribed due dates• Failure to file...

Acts Against National Interest • LLP engages in activities against the sovereignty of India • LLP acts against the integrity or security of the country • LLP is involved in unlawful or terrorist-related operations • LLP violates foreign relations or friendly ties of...

Legal Requirement for Registered Office Every LLP must have a registered office as per the LLP Act, 2008 The address must be provided at the time of incorporation in Form FiLLiP It is used for official correspondence, legal notices, and communication with regulatory...

General Information Clauses Name of the LLP and its registered office address Date of incorporation and reference to the LLPIN (LLP Identification Number) Business objectives and nature of activities the LLP intends to carry out Duration of the LLP, whether perpetual...

Situations Requiring Amendment Amendments are needed when there are changes in partner details, capital contribution, profit-sharing ratio, business activities, or management roles Any change in terms agreed between partners must be reflected in a revised LLP...

Legal Permissibility Yes, an LLP (Limited Liability Partnership) can invest in mutual funds, provided it is allowed by its LLP Agreement There is no restriction under the LLP Act, 2008 prohibiting such investments The activity must be in line with the object clause of...