Change of Partners in Limited Liability Partnership LLP

 Change of Partners in Limited Liability Partnership (LLP)

The Limited Liability Partnership is operated by its partners, who oversee all aspects of the business to achieve its objectives and vision. The addition or departure of partners does not affect the LLP's legal status, but it does impact the business's growth and the remaining partners' responsibilities. Any changes to the partners or their information require approval from the Ministry of Corporate Affairs.

The process of adding a partner to an LLP

  • The addition of a new partner to an existing LLP typically requires the approval of all current partners, unless the LLP agreement permits one partner to do so without the others' consent.
  •  To join the LLP, the new partner must express their intention to do so, and after being admitted, the LLP must file Form 4 within 30 days.

  • The form must be signed by an existing designated partner and accompanied by a certificate from a practicing company secretary or chartered accountant verifying the accuracy of the LLP's records.
  • Furthermore, an addendum to the existing LLP agreement must be executed for the addition of a partner.
  • To become a designated partner, the new partner must first obtain a digital signature certificate (DSC) and then apply for a Director Identification Number (DIN) for which the government charges its fees. Permission from existing partners is also required.
  • The firm must prepare the necessary documentation for adding a partner, and the same process applies if the partner changes from a regular partner to a designated partner.

Process

Step 1: Obtain the consent of all the partners or resolution of partners in the LLP meeting for the Addition of partners. Pass resolution for admission of Partner

Step 2: Revise the LLP agreement for the addition of partners. Execute Amendment to LLP Agreement

Step 3: File the LLP Form 3 and 4 for the addition of partner LLP. File an Application for approval of change Form 4 & Form3

List of documents for Adding Partner in LLP

  • PAN card of New Partner
  • Address Proof of New Partner (including PAN)
  • Consent form

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