Know about change in Partners of LLP

Know about change in Partners of LLP

Introduction


A Limited Liability Partnership is run by its partners. From its management to the operation, the partners direct the LLP towards its goals and vision. New partners are added or existing leave; it does not affect the status of the LLP, but surely impacts the growth of the business and responsibilities of other partners. The change in partners and their details can be affected only after the approval from the Ministry of Corporate Affairs.

To add or remove a partner from LLP, the consent of other partners must be obtained, which is followed by a change in the LLP Agreement and application to MCA to approve the changes. The application to MCA must be filed within 30 days of effective date of the change.

Reasons for change in Partner in LLP

The requirement to change of Partner may arise after the Online LLP Registration and incorporation. Various reasons are there affecting the changes in the partners of the LLP. Following can be the prime reasons behind the change of Partners in LLP or their Designation after incorporation and LLP registration in India:

  • Requirement to invest capital in LLP;
  • Change of responsibilities or engagements of the Partner(s);
  • Disability to perform to reach the expectations laid down under LLP Agreement or by Partners;
  • Change of terms of agreement between Partners and LLP;
  • Resignation and retirement of the Partner;
  • Requirement to appoint expertise in specific field of operations of LLP.

Documents required for Addition or Removal of partner


   1


Photograph

Passport size photograph of the partner to be appointed

   2


PAN Card

Self-attested PAN card of the partner to be appointed

   3


Proof of Residence

Aadhar Card/ Voter ID/ Passport/ Driving License partner to be appointed

  4
Digital Signature Certificate

DSC of the continuing partner and partner to be removed

  5
LLP Agreement

LLP Agreement executed while registration and the modifications thereto




















Procedure to add a designated partner:

The proposed designated partner shall apply for a DSC. The following documents are required for the application:

  1. PAN Card of the applicant
  2. Aadhaar Card of the applicant
  3. Photo of the applicant
  4. Email Id of the applicant
  5. Phone number
  • Apply for DIN Number- After the DSC, the Director Identification Number of the Director will be applied in the form DIR – 3 along with the address proof and the identity proof of the applicant.
  • Once the DIN is allotted to the designated partner, all the existing partners of the LLP will call a meeting and pass a resolution to add a designated partner in the partnership deed.
  • A supplementary partnership deed will be drafted in which the new partner’s name will be added.
  • Then the consent of the incoming partner will be taken in writing.
  • After these documents are prepared, Form – 4 of LLP will be filed within 30 days of the appointment from MCA Portal
  • After filing this form, FORM – 3 will be filed, along with the supplementary and the original partnership deed within 30 days of appointment.
  • After the filing of all these forms, the name of the designated partner will be added and will be seen on the site if the Ministry of Corporate Affairs.

  • If Form – 3 and Form – 4 are filed within 30 days there is an additional fee on each form of Rs. 100/- per day. To know more visit Taxaj


    • Related Articles

    • Can an LLP have branches in different states?

      Can an LLP Have Branches in Different States in India? Limited Liability Partnerships (LLPs) have become a popular business structure in India, combining the benefits of a company and a partnership. One common question from entrepreneurs and ...

    • How to change the Name of LLP?

      Introduction Any LLP which is legally registered as per the Limited Liability Partnership Act, 2008 is allowed to change its name at any given time during its working after gaining approval from the appropriate authorities higher up. Usually, in most ...

    • How to appoint designated partners in an LLP?

      How to Appoint Designated Partners in an LLP: A Step-by-Step Guide:- The Limited Liability Partnership (LLP) structure has become a popular choice for startups and small businesses in India due to its flexibility and limited liability benefits. A key ...

    • Can an LLP have corporate partners?

      Introduction Limited Liability Partnerships (LLPs) have emerged as a preferred form of business structure in India due to their flexible management, limited liability, and lesser regulatory burdens compared to companies. One of the most frequently ...

    • Conversion of Private Company into LLP

      Understanding Limited Liability Partnership LLP is a combination of both Company and Partnership. It is especially suitable for small to medium-sized business enterprises.   It is governed by Limited Liability Partnership Act- 2008 which came into ...