MCA has introduced a new mandate for all limited liability partnerships (LLPs) outlined briefly as follow:
TIMELINE TO COMPLY
Register of Partner
|· In Form 4A, register of Partners need to be maintained by LLP at their registered office.
· It must contain details of partners, nominee, date of becoming & cessation of partner. Further details of both tangible and intangible contributions, SRN Number and date of filing form 3, details of nominee
· If the LLP makes corrections in the register due to legal orders, the order’s reference will be noted in the register, with reasons recorded in writing.
|Newly incorporated LLP- Maintain the register from the date of incorporation of LLP.
Existing LLP- Maintain the register within 30 days from commencement of the said rule.
Pursuant to any changes in the contribution amount, or in name and details of the partners in the LLP agreement, or in cases of cessation of partnership interest within 7 days of such changes.
Declaration in respect of Beneficial Interest in any contribution
|· Person whose name is entered into register of partner but not hold any beneficial interest, fully or partly, in the contribution (hereafter referred to as the ‘registered partner’) shall provide the declaration in Form 4B to LLP.
|within 30 days of their name being entered in the register/changes thereto.
|· Person who holds or acquires a beneficial interest in the contribution, but whose name is not registered in the register of partners (hereinafter referred to as the ‘beneficial partner’) shall provide the declaration in Form 4C to LLP.
|within 30 days of acquiring beneficial interest/changes thereto.
|· LLP shall file return to the Registrar in respect of declaration of beneficial interest in contribution received by the LLP in Form 4D.
|within 30 days from the date of receipt of declaration in Form 4B/ Form 4C.
|· LLP needs to specify a designated partner who will be responsible for providing information on beneficial interest in the contribution to the Registrar or any authorized Central Government officer.
*In the absence of a specified designated partner, all existing designated partners will be deemed as responsible.
|The details of such designated partner to be submitted to the Registrar in Form 4.
The above amendment paves way for more transparency in the ownership of LLPs, these reportings are already in force for Companies in register of members/Director’s maintenance and declaration of beneficial interest in any share in MGT 4 and MGT 5.