ADD/REMOVE A PARTNER(LLP)

Adding a partner in LLP

LLP is governed based on the rules of the Limited Liability Partnership Act, 2008. Now-a-days, LLP has become more popular compared to Private or a Limited Company form of business because of its easy nature and lesser compliance.

Every LLP should have at least two partners and out of them, two will act as designated partners who work and participate in the day-to-day activities. Once appointed, a partner or a designated partner can be changed, removed or appointed based on the minimum and maximum number of partners available within LLP.

Procedure to add a designated partner:

Apply for a Digital Signature Certificate.
Apply for DIN Number.
After this, all the existing partners of LLP will have a meet and pass resolution to add a designated partner in partnership deed.
Along with this a supplementary partnership deed will also be drafted in which the new partner’s name will be added.
Then the consent letter of the incoming partner will be required in writing.
Form – 4 of LLP has to be filed within 30 days of the appointment.
Then, FORM – 3 will then be filed by affixing it to a supplementary and 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 of the MCA.

Removing a partner from LLP

A Partner in a Limited Liability Partnership may want to resign or can be removed for various reasons. The removal/resignation of a Partner has to be properly recorded and the relevant filings should be filed with MCA to affect the Partner removal/resignation.

Resignation or Removal of Partner
A Partner in an LLP may cease to be a partner of a LLP in accordance with the Limited Liability Partnership Agreement between the Partners. If the LLP agreement doesn’t have any restrictions, then a Partner in a LLP can resign from a LLP by providing notice of resignation in writing 30 days before release, to the other Partners in the LLP. In the following cases, a Partner would automatically cease to be a Partner in the LLP:

On the death of my Partner If the Partner is declared insolvent.
On dissolution of the LLP
A Partner in an LLP will be considered to be a Partner unless other Partners have received a written note about the intent of the partner to resign.

Moreover, Partners in LLP can't be removed by seeking a majority of the other Partner unless LLP agreement explicitly provides such powers to the partners. If LLP Agreement provides such powers, a Partner can be removed and Form 4 must be filed to effect the removal.