For the purpose of forming a LLP, there should be agreement between the partners interested in forming the LLP to be known as LLP Agreement.
The said Agreement forms the basis of the formation of LLP and lays down its founding structure. The LLP agreement is an agreement between the partners, and, between the LLP and its partners (Sec. 23).
The basic contents of Agreement are:
- Name of LLP
- Name of Partners and Designated Partners
- Form of contribution
- Profit-sharing ratio; and
- Rights and duties of partners.
In case no agreement is entered into, the rights and duties as prescribed under Schedule I to the LLP Act shall be applicable (Sec. 23).
It is possible to amend the LLP Agreement but every change made in the said agreement must be intimated to the Registrar of LLP.
