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Change is the main objects means to change the existing main business activities of the LLP due to any reasons. Main activities mean those business activities which a LLP want to do after its incorporation. LLP can do business activities which are mentioned in its LLP agreement and other ancillary activities in supporting with the main activities of the LLP.
When a partner wants to expand its business, then they may change its main business activities and if the partners want to do any other business activities which is not mentioned in the LLP Agreement earlier then they may change their main business activities of the LLP with the mutual consent of the partners in the LLP Agreement.
What kind of business activities a LLP can do?
LLP is incorporated for doing any legal business activities. However, incorporation document prohibits, LLP from doing NBFC business activities. Also, LLP name guidelines, mandate that if the name of the LLP indicative of activity, LLP activities must relate to the activity indicated in the name.
How to Change objects in LLP?
The LLP agreement contains a clause regarding LLP activity and procedures to be followed for changing the object. Based on the partners understanding, the supplementary agreement is prepared and requisite e-Form filed with respective Registrar of Companies to changes the object of LLP.
Objects can be change by executing the supplementary agreement/deed and file the E-form LLP-3
Supplementary deed/Agreement shall be executed in any change in the objects of the LLP.
Business activities consisting of banking, insurance, venture capital, mutual fund, stock exchange and asset management are allowed provided that in-principle approval from regulatory authorities is obtained. Please note that as per RBI guidelines, LLPs are not permitted to undertake NBFI activities.