Increase Capital

Raising the capital for your LLP is a process defined under the LLP Act of 2008. It needs to be formally documented in your LLP Agreement and then officially registered with the Ministry of Corporate Affairs (MCA).

At G K B & Associates, we manage the whole capital increase procedure for you – making it smooth, fast, and completely compliant with all the legal requirements. This way, you can concentrate on putting those extra funds to work for your business growth.

Benefits of Increasing LLP Capital

Expand Operations – Fund new branches, equipment, or projects.

Enhance Creditworthiness – Strengthen your financial standing with banks and investors.

Bring in New Partners – Allow higher contributions for incoming partners.

Maintain Compliance – Keep MCA records updated for capital changes.

Flexible Funding – Capital can be in cash, property, or other agreed contributions.

Documents Needed for LLP Capital Increase

From the LLP: :

1. Existing LLP Agreement
2. Certificate of Incorporation of LLP
3. Resolution of partners approving capital increase
4. Supplementary/amended LLP Agreement showing revised capital

From Partners:

1. PAN Card and Address Proof (for new or increasing partners)
2. Proof of capital infusion (bank statement, property valuation, etc.)
3. Digital Signature Certificate (DSC) of designated partner filing forms
4. Designated Partner Identification Number (DPIN/DIN) of signing partners

Our Process

Understanding the Need for More Capital

We'll take a look at why you need to increase the capital, review your LLP Agreement, and draft any necessary changes to it.

Partner Approval

We'll get everything ready for the resolution that approves the capital increase and make sure all partners give their consent, following what your LLP Agreement requires.

Finalizing and Updating Records

After the MCA gives the go-ahead, we'll provide you with the updated LLP Agreement and help you update the official registers and your internal records.

Frequently Asked Questions

What does increase of capital in an LLP mean?

Increase of capital in an LLP means enhancing the capital contribution by existing or new partners to support business growth, expansion, or compliance with funding requirements.

Why should an increased capital contribute?

An LLP may increase its capital to raise additional funds, strengthen financial stability, admit new partners, or meet statutory and contractual obligations.

What is the procedure to increase capital in an LLP?

The process involves:

Consent of existing partners
Execution of Supplementary LLP Agreement
Filing Form 3 with the Registrar of Companies (ROC) within 30 days
Updating records of capital contribution and profit-sharing ratio

What documents are required for increasing capital?

Key documents include:

Resolution/consent of partners
Revised LLP Agreement
Details of revised capital contribution
ROC filing forms

Is ROC approval required for increasing capital?

Yes. Any change in capital contribution must be filed with the Registrar of Companies (ROC) through prescribed forms for it to be legally valid.

Increase Capital