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    Charge creation by LLP

    Posted By : SARIKA / Published on : 07-Jul-2022 06:52 AM / View : 1185 / Comment : 4

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    There is no provision to get the charges registered under the LLP act 2008 and LLP rules 2009 Unlike the Companies Act 2013.

    But LLP form-8 shows that annual returns to be filed by LLP can be either as 'Annual form or interim'.

    Further, form 8 mandates a declaration of designated partners in part A (statement of solvency) stating that creation of charge modification or satisfaction has been filed till the present financial year. This implies that LLP can borrow secured loan. It is only inference that one can draw from reading the contents of Form No-8.

    Therefore, when LLP takes a loan and wants to create charge, it has to file interim Form No- 8 to create charge. (please note that the declaration in statement of solvency reads as 'We have already filed a statement indicating creation of charges or modification or satisfaction thereof till the present financial year'). It is worth noting that the word' SOLVENCY' is not defined in LLP Act or The Companies Act or even in The Insolvency and Bankruptcy Code, 2016.
    Read more on : creation charge

    • 11-07-2022 / 07:36:16 AM
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    • 11-07-2022 / 07:41:16 AM
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    • MANY THANKS SHIRITI ITS REALLY HELPED.

       

      12-07-2022 / 05:08:57 AM
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    • An LLP (Limited Liability Partnership) can create a charge on its assets or properties, subject to the provisions of the LLP Agreement and the LLP Act, 2008. The procedure for creating a charge by an LLP is as follows:

      1. Obtain the consent of all partners: Before creating a charge, the LLP must obtain the consent of all its partners, as per the provisions of the LLP Agreement.

      2. Identify the assets: The LLP must identify the assets on which the charge is to be created.

      3. Draft a charge document: The LLP must prepare a charge document, which should include details such as the nature of the charge, the assets on which the charge is created, the amount of the charge, the terms of repayment, etc.

      4. Stamp the charge document: The charge document must be stamped in accordance with the applicable stamp duty laws.

      5. Register the charge: The LLP must register the charge with the Registrar of Companies (ROC) within 30 days of its creation, using Form LLP-3.

      6. Obtain the consent of the lender: The lender must also provide its consent to the creation of the charge, which should be attached to the Form LLP-3.

      7. Pay the filing fee: The LLP must pay the applicable filing fee along with the Form LLP-3.

      Once the charge is registered with the ROC, it becomes a public record, and any person can inspect or obtain copies of the charge document. The LLP must also maintain a register of charges, which should contain all the details of the charge created by the LLP.

      04-04-2023 / 09:09:09 AM
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