The requirement to change of Partner may arise after the LLP Registration and incorporation. This could get affected by many reasons for changes in the partners of the LLP. Following can be the key 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.
Apart from the reasons mentioned above, there are number of reasons which require the addition or removal of Partner(s); or change in designation of Partner(s) after LLP Registration.
The term change in Partners includes addition, appointment, resignation or removal of the Partner in the LLP. Whereas the term change in designation does not include addition or removal of Partner in LLP. The term change in designation refers to change in position of designation of the Partners. The Partners are classified as Designated Partner and other normal Partners.
The change in Partners, as well as change in designation, require following the same procedure with little changes. Our team of skilled and legal experts works closely with you both on line and face to face to get this process done for your company. To summarize some of the things that we would be guiding/assisting that are required to be followed to effect the changes.
When the application is filed for addition of Designated Partner or change of designation from Partner to Designated Partner, we would need to obtain DIN (Director Identification Number). In case of resignation of Partner or Designated Partner, the said person shall provide a Notice to the LLP for a minimum period of 30 days.
Pass resolution to affect the change
To effect any changes in the Limited Liability Partnership, the Partners shall pass the resolution at the meeting of Partners as required by the LLP Agreement of concerned Limited Liability Partnership.
Execute Supplement Agreement
The supplement deed to the LLP Agreement shall be executed by the Partners of the LLP including the Partner who is to be added or removed.
File an Application for approval of change
As soon as the Supplement Agreement is executed by the Partners for change of partner or their respective designation, an application shall be filed with MCA to approve the changes of partner or the designation filed in the prescribed forms, i.e. LLP Form 3 & LLP Form 4.
The application of change of designation or addition and removal shall be reviewed by the registrar for the approval.
In addition, to the above, a LLP agreement for adding Partner must be executed as an addendum to the existing LLP Agreement
We would be more than happy to hear from you, on your requirements and through our easy accessible and friendly team of experts would take care of the formalities. While you go about concentrating, on your core areas of business and growth.