What is a Increase in Contribution LLP?
Contribution means “Part or Share”. In reference to LLP, contribution can be termed as, what a partner is contributing towards the Limited Liability Partnership for running of his business. For ease of understanding, what Share Capital is in case of Company, is Contribution in case Limited Liability Partnership. Therefore, in case of LLP, the ownership will be judged on the basis of contribution by the partners in the LLP.
The contribution can be in the form of tangible, movable or immovable or intangible property or other benefit to the limited liability partnership, including money, promissory notes, and other agreements to contribute cash or property and contracts for services performed or to be performed.
If partners wants to increase its share in the LLP, it can increase it by way of bringing contribution to the LLP and LLP needs to amend the LLP agreement after ringing such contribution and also shall intimate ROC for the said increase in contribution of the LLP within 30 days of increase in contribution in the forms available on MCA portal.