Process of Change of Partner for LLP

Compliance

Process of Change of Partner for LLP

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For Admission of New Partner

  1. Apply for DSC and DIN Number, 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.
  2. 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.
  3. A supplementary partnership deed will be drafted in which the new partner’s name will be added.
  4. Then the consent of the incoming partner will be taken in writing.
  5. After these documents are prepared, Form – 4 of LLP will be filed within 30 days of the appointment.
  6. After filing this form, FORM – 3 will be filed, along with the supplementary and the original partnership deed within 30 days of appointment.
  7. 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.
  8. If Form – 3 and Form – 4 are filed within 30 days there is an additional fee on each form of Rs. 100/- per day.

For Retirement / Removal of existing Partner

  1. Partner shall pass written resolution after conducting meeting with partner. By this resolution partners authorize one of partner on behalf of LLP & firm to act for legal proceedings. Partner who is authorized to carry legal formalities of change in partner shall hold valid DSC & DIN number
  2. LLP agreement need to amended and necessary filing need to be done in case of removing / resigning partner. This agreement contains information about partner who is resigning, terms of resigning, effective date of resignation etc. This deed needs to be signed by removing and existing partners. LLP needs to ensure that it have minimum two designated partners for carrying business.
  3. Filing of Form 4 for intimating changes in partners of LLP.
  4. After execution of supplementary agreement for removal of partner. This agreement needs to be submitted within 30 days to MCA. This required certification from Certification form Practicing Chartered Accountant or Company Secretory of CMA. For failure to do compliance of Form 3 there is late filing fees of Rs. 100/- per day applicable.

Process of Change of Partner for Partnership

For Admission of New Partner

  1. Consent of all existing partner for admission
  2. Drafting of Supplementary deed

For Retirement / Removal of existing Partner

  1. Resignation letter
  2. Resolution for Removal
  3. Drafting of Supplementary deed