Increase LLP Contribution
Increase LLP Contribution
At Cardiff Service, we specialize in LLP compliance and capital restructuring solutions. If you’re planning to infuse additional capital into your LLP for growth, expansion, or financial stability, our expert team ensures seamless compliance with the Registrar of Companies (RoC) while helping you draft and file all required documents under the LLP Act.
With our professional support, you can enhance your LLP’s financial strength, attract investors, and confidently scale your operations.
Why Increase LLP Capital?
As your LLP grows, sufficient capital is vital to support initiatives and long-term sustainability. Increasing LLP capital provides several key benefits:
- Support Growth & Expansion:-Additional capital helps fund new initiatives such as entering new markets, launching products, or investing in advanced technology, keeping your LLP ahead of the competition.
- Enhance Financial Stability:- By increasing capital, your LLP strengthens its liquidity and working capital, ensuring it can meet obligations, manage risks, and withstand market fluctuations effectively.
- Attract Investors & Partners:- An LLP with a higher capital base is more attractive to investors and strategic partners, signaling stability and growth potential. This opens doors to collaborations, joint ventures, and funding opportunities.
- Facilitate Business Loans:- Financial institutions often evaluate capital strength while approving loans. A higher capital base improves your loan eligibility, interest rates, and repayment terms, supporting your business expansion.
- Flexibility in Decision-Making:- With increased capital, your LLP gains freedom to make strategic decisions without financial constraints—whether it’s R&D investments, hiring skilled talent, or executing large-scale marketing campaigns.
Features of Increasing LLP Capital
At Cardiff Service, we guide you through every aspect of increasing your LLP’s capital contribution, ensuring compliance and smooth execution.
Key Features:
Capital Contribution in LLP Agreement
The total contribution of the LLP and each partner’s share (with percentage) must be clearly stated in the LLP Agreement.
Form of Contribution
Contributions can be in the form of tangible or intangible property, cash, or any other agreed benefit to the LLP.
Accounting & Disclosure
The monetary value of each partner’s contribution must be accounted for and disclosed in the LLP’s financial records as per applicable rules.
No Fixed Legal Procedure
The LLP Act, 2008 and LLP Rules, 2009 do not prescribe a fixed procedure for increasing contribution.
The process is governed by the LLP Agreement of the firm.
Ways to Increase Contribution
Existing Partners may bring in additional contribution.
New Partners may be admitted with fresh contribution.
Supplementary Agreement
A Supplementary LLP Agreement must be executed on requisite stamp paper for modifying clauses related to capital contribution.
Mandatory Filing
Form LLP-3 for Supplementary Agreement must be filed with the Registrar within 30 days of the change.
Mutual Consent
The actual contribution shall be made as per mutual agreement between LLP and its partners.
Documents Required to Increase LLP Capital
When planning to increase the capital of your Limited Liability Partnership (LLP), Cardiff Service helps you prepare and submit all necessary documents with complete compliance. The following key documents are typically required:-
- Resolution:- A resolution signed by all partners (or designated partners) authorizing the capital increase. It should clearly mention the amount, purpose, and approval of the additional capital.
- Supplementary LLP Agreement:- An amended LLP agreement reflecting the revised capital structure, rights, obligations, and profit-sharing ratios of partners. This must be duly signed by all partners or designated partners.
- Form for Filing Changes:- Filing of the prescribed form with the Registrar of Companies (RoC) or relevant authority, including details of partners, current capital, and proposed increase.
- Bank Statement:- A bank certificate or statement of the LLP confirming the deposit of increased capital in the LLP’s bank account, issued on official letterhead.
- Proof of Capital Infusion:- Documents such as bank receipts, transfer records, or other evidence showing the infusion of funds into the LLP.
- Proof of Identity & Address:- Valid KYC documents (Aadhaar card, Passport, Driving License, etc.) of all partners or designated partners. Copies should be attested/self-attested as per requirements.
- Any Additional Documents:- Depending on RoC guidelines or jurisdictional requirements, additional documents such as board resolutions, power of attorney, or consent letters may be required.
Procedure to Change LLP Change
At Cardiff Service, we simplify the process of increasing your Limited Liability Partnership (LLP) capital by ensuring every step is legally compliant and efficiently executed. The procedure typically involves the following:
Check the LLP Agreement
Verify whether the LLP Agreement specifies any procedure for increasing the capital contribution.
If such provisions exist, follow them. If not, the procedure under the LLP Act, 2008 will apply.
Hold Meeting of Partners
Conduct a meeting of partners by issuing due notice to all partners.
Discuss and approve the proposal to increase the capital contribution.
Pass Resolution / Consent of Partners
Pass a resolution approved by a majority of partners for the increase of LLP contribution.
This follows Clause 7 of the First Schedule to the LLP Act, 2008.
Execute Supplementary LLP Agreement & Pay Stamp Duty
Draft and execute a Supplementary LLP Agreement to update the capital contribution clauses.
Pay applicable stamp duty (1% p.a.) on the difference between the existing and the increased contribution.
File e-Form LLP-3 with Registrar
File Form LLP-3 on the MCA portal within 30 days of the change.
Attach the following documents:
Initial LLP Agreement
Supplementary LLP Agreement
Any other required attachment
Frequently Asked Questions
A company name search ensures that your chosen business name is unique, legally compliant, and not already registered with Companies House UK. It helps you avoid legal disputes, trademark issues, and confusion in the Cardiff business market.
If your desired name is already registered, you’ll need to choose a different name or modify it. Using a taken name could result in rejection by Companies House or potential legal issues. Our experts can help you brainstorm alternative names that are compliant and market-ready.
It’s not advisable to use a name that’s too similar to another company, especially within the same industry. Similar names can confuse customers and risk trademark disputes. A company name search helps you identify these risks early.
For a company name search in Cardiff, you may need:
Proposed company name
Business entity type (Ltd, LLP, Partnership, etc.)
Jurisdiction (Cardiff / UK)
Owner or shareholder details (if applicable)
Business description
A “high probability” result means your proposed company name is likely to be available, but further checks are recommended. This is why our detailed Cardiff Company Name Search Report includes both identical and similar names for clarity.
Certain words are restricted under UK law (e.g., “bank,” “insurance,” “government”). If you want to use them, you’ll need special approval from regulatory bodies. We guide you through this process if your Cardiff business requires such terms