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Addition of Partner in LLP

There are two types of Partners in a LLP viz.: Designated Partner and Partner.  Partners are responsible for the carrying on the business of the LLP and Designated Partners are responsible for ROC Compliances and Bank signing authorities. For addition of a Partner in the LLP, person proposing to become a Partner must obtain Director Identification Number (DIN) and Digital Signature Certificate (DSC).  

Designated Partner and Partner.  Partners are responsible for the carrying on the business of the LLP and Designated Partners are responsible for ROC Compliances and Bank signing authorities. For addition of a Partner in the LLP, person proposing to become a Partner must obtain Director Identification Number (DIN) and Digital Signature Certificate (DSC). All Partners have right to take part in the conduct of the business of the LLP.

ADDITION OF PARTNER IN LLP

 

Basic information

 

 

There are two types of Partners in a LLP viz.: Designated Partner and Partner.  Partners are responsible for the carrying on the business of the LLP and Designated Partners are responsible for ROC Compliances and Bank signing authorities. For addition of a Partner in the LLP, person proposing to become a Partner must obtain Director Identification Number (DIN) and Digital Signature Certificate (DSC).  Any person whether Indian Nationals or Non-Resident Indians or Foreign Nationals can obtain DIN to be appointed as Partner in LLP.

 

LEGALRAJ will assist in appointment of a partner in your company. The average time taken to file for appointment of Partner is about 10-15 working days, subject to government processing time and client document submission.

 

What will you receive in Director’s Appointment package ?

 

 

  1. DPIN of Designated Partner *
  2. DSC token of the Designated Partner
  3. Partners consent or resolution for his/ her appointment in the LLP
  4. Appointment Letter to Partner / Designated
  5. Consent of Appointee Partner
  6. Revised and Reinstated LLP Agreement
  7. All the ROC filing compliances related to addition of partner

 

* (DIN and DPIN both are the same and not different)

 

What are the Duties and Rights of a Partner in the LLP ?

 

1. General Duties:

Partners of a LLP are bound to carry on the business of the LLP to the common advantage, to be just and faithful to each other, and to render true accounts and full information of all things affecting the LLP to any partner.

 

2. Rights of Partners:

All Partners have right to take part in the conduct of the business of the LLP and access to inspect and copy the book of accounts of the LLP.

 

3. Duty to Indemnify:

Every Partner of a LLP is required to indemnify the LLP for any losses caused to it by fraud in the conduct of the business of the firm.

 

4. Implied Authority:

The authority of a Partner to bind the LLP, in case of any transaction carried on, as in the usual way business is carried on by the LLP, binds the LLP.

 

5. Properties of LLP:

All property, rights and interest in assets (tangible or intangible) acquired or developed with the money of the LLP belong to the LLP.

 

 

What is the process for addition of partner in LLP ?

 

Step 1: Apply for the Designated Partner Identification Number (DPIN) in form DIR-3

Step 2: Obtain the consent of all the partners or resolution  of partners in the LLP meeting for Addition of Partner.

Step 3: Revise the LLP agreement for the addition of partner

Step 4: File the LLP Form 3 and 4 for addition of partner LLP

 

The entire process for registration of Company will take at least 2 to 4 working days from the receipt of all the necessary documents and filing with the ROC.

 

(All the above documents are to be self-attested)

 

 

How we help with add partner to LLP

 

  1. Consultation: We will review your LLP Agreement to determine the course of action for addition of Partners or Designated Partner in the LLP. As per complexities involved, we will assist you with the procedure for addition of Partners or Designated Partner and matters related thereto.

 

  1. Partners’ Resolutions: Then we will provide timelines, documents and do the compliances for you.

 

  1. Filing: We will timely file applicable returns, documents and other formalities with the Ministry of Corporate Affairs to effectuate addition of Partners or Designated Partner.

Documents


Passport Photo

Passport Photo of appointee Partner


DSC Token

DSC Token of appointee Partner


PAN Card

PAN Card of appointee Partner


Aadhaar Card

Aadhaar Card of appointee Partner

FAQ

Limited liability partnerships (LLPs) has a partnership structure where each partner's liabilities is limited to the amount they put into the business. More business partners means spreading the risk, leveraging individual skills and expertise, and establishing a division of labor.

The Partners can be added by entering into the Supplemental LLP Agreement to the Original LLP Agreement. No special approval is required of any other authorities.However, the addition of the Partners in the LLP is to be intimated to the jurisdictional ROC by filing of LLP Form No. 3 and 4 within 30 days of the execution of the supplemental LLP Agreement for the addition of the partners.

No. However, in case of Designated Partners,the Signatory details of the LLP on the MCA portal will be updated when there is an addition of the Partnersin the LLP and the same can also be checked through this link; http://www.mca.gov.in/mcafoportal/viewSignatoryDetails.do. However, In case of addition of only Partners, there will be no receipt or acknowledgement will be generated and the Supplemental LLP Agreement will be the only evidence for the addition of the Partners in the LLP.

Addition of Partners usually takes 1-2working days subject to the approval of the jurisdictional ROC and the receipt of documents from the clients.

Click on Get Quotation tab above and fill the details, you will receive required documents list and quotation in few seconds in your mailbox. No charges for requirement list and Quotation.

LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name.

The role of designated partners in case of LLP is on the same parlance as of Directors in the case of a Company.Unlike normal partners, designated partners are responsible for doing all acts, matters, and things as are required to be done by LLP in respect of compliances of the provisions of the LLP Act.

A minimum of two partners will be required for formation of an LLP. There will not be any limit to the maximum number of partners.

It is given in section 5 of LLP Act, 2008 only an individual or body corporate may be a partner in a Limited Liability Partnership. An HUF cannot be treated as a body corporate for the purposes of LLP Act, 2008.

A limited liability partnership is owned by members, or 'partners'. There are no directors or shareholders. LLPs require a minimum of two members. There is no restriction to the maximum number of partners an LLP can have

It is not necessary that all the incoming partners should contribute to the capital of the LLP. Partners may not bring in the additional contribution to the capital of the LLP. However, whenever any incoming partner contributes the capital of the LLP then the capital ratio and the profit sharing ratio may also get changed.

An LLP has separate legal personality and therefore can own property and sue and be sued in its own name. The members of an LLP has limited liability like a limited company and not like a partnership.