LLP Agreement Format for Adding Partner
February 11, 2019
Removal of Partner From LLP
February 11, 2019
Procedure for Adding Partner in LLP
Once Online LLP registration is completed and there is requirement for adding new partner in LLP. Below procedure for Adding Partner in LLP need to be followed as per Section 7 of LLP Act 2008.Existing partner need to give consent in writing and File form 4 & 3 with necessary attachments. This hole procedure may time upto 3-7 working days for completion. In this article we provided 3 step Procedure for Adding Partner in LLP.
There can be various reasons for addition of partner in LLP. Few of reasons are as below
- Invest Capital In LLP
- Change in role & responsibilities of LLP
- Mutual consent of Partners
- Family run LLP Business
- Retirement of existing partner
- For Expansion LLP Business
There any be other reason which required addition or change of partner in LLP. In this article we have provide 3 step guide for Procedure for addition or change of partner in LLP
Who Can Become Partner in LLP ?
- An individual unless other disqualified
- A company incorporated under the Companies Act 1956 or Companies Act 2013
- A LLP incorporated under LLP Act 2008
- A LLP incorporated outside India A company incorporated outside India
List of document for Adding Partner in LLP
- PAN card of New Partner
- Address Proof of New Partner
- Passport size Photo
- Email ID & Cell Phone Number
3 Step Procedure for Adding Partner in LLP
For Addition of Partner in LLP, incoming partner shall apply first for Digital signature Certificate (DSC). After DSC New Partner shall apply for DIN (Director Identification Number). Government (MCA) fees for DIN registration is Rs. 500/-. Writing Consent of exiting partners is required. Also firm need to prepare document for addition of partner. Same procedure shall be applicable in case Change in Partner status from Partner to Designated Partner.
- Pass resolution for admission of Partner
- Execute Amendment to LLP Agreement
- File an Application for approval of change Form 4 & Form 3
Step 1 : Pass resolution for admission of Partner
Partner shall pass written resolution after conducting meeting with partner. This Resolution for admission of Partner authorized existing partner to act on half of LLP & Partner’s. Existing partner who is authorized for legal formalities shall hold a valid DSC and DIN Number. Important Points Resolution for admission of partner.
- Execute Resolution of Letter Head of LLP
- Resolution of required Signature of existing partners and authorized partner
- Details about subject matter
- Affix Stamp of LLP
Status of existing partner about DIN can be check online at http://www.mca.gov.in/mcafoportal/showEnquireDIN.do.
Step 2 :Execute Amendment to LLP Agreement
LLP carries businesses as per terms and conditions of agreement. This is source document which have information of Capital , Profit & loss sharing ration, Role & Responsibilities of Partners etc. The supplement LLP Deed Agreement shall be executed by existing partner and new partner. This agreement may have information about New partner capital introduced , roles, duties etc. Check LLP Format for addition of Partner.
- It should contains terms & Condition towards admission of Partner.
- Previous LLP agreement can be amended through Supplementary agreement
- In case there is no change in capital this agreement can be executed on Rs.100/- stamp paper
- In case there is change in capital contribution of LLP then bond value applicable as per Stamp Act provisions.
- This supplementary agreement shall have sign of existing partner and New partner
Step 3 : File Form 4 & Form 3 intimating Change of Partner in LLP
Form 4 of LLP shall be filed online to Ministry of Corporate Affairs for intimation of Change in Partner of LLP. This Form need to be signed digitally by use of DSC of existing partner. Form 4 is towards Notice of appointment, cessation, change in name/ address/ designation of a designated partner or partner. and consent to become a partner/designated partner/ Notice of appointment, cessation, change in name/ address/ designation. Certification form Practicing Chartered Accountant or Company Secretory of CMA is required.
Attachments to Form 4 of LLP
- Consent to act as partner/ designated partner
- Resolution for Authorizing partner
- Consent letter from New partner
- Other Optional attachments
Form 3 of LLP shall be filed online for uploading supplementary LLP Agreement. This shall be filed towards making amendment to existing LLP agreement. Within 30 day of filing form 4 this Form 3 of LLP need to filed. This required certification from Certification form Practicing Chartered Accountant or Company Secretory of CMA. For non filing per day late fees of Rs.100/- applicable.
Attachments to Form 3 of LLP
- Existing LLP agreement
- New supplementary LLP Agreement
- Optional attachment of if any
Fee/Cost for Addition of Partner in LLP
Below is approx government fees & other expenses require for addition of designated partner in LLP.
| S.No. | Particulars | Amount |
| 1 | DIN Government Fees | 500 |
| 2 | Digital Dignature (DSC) | 1000 |
| 3 | Other Expenses ( appx) | 2500 |
| Total | 4000 |
Conclusion
The procedure for adding partner in LLP along with necessary documents and DIN & DSC may time upto 3-7 working days. All documents need to uploaded in soft copies of MCA. We provide export services towards LLP Related matters.
