In the Limited Liability Partnership (LLP), New partners can be admitted or removed easily in the existing LLP without change the constitution of partnership Firm.
The partner many be change, if the following events are happen
- Resignation of Partner
- New Admission of Partner
- Death of Partner
- Removal of Partner
Resignation of Existing Partner
If existing partner want to exist from the LLP they can be resign subject to the provision of LLP Agreement. The exit partner can be entitling for receiving his capital, profit or loss in the partnership firm in his profit sharing ratio.
The resignation from a LLP will not auto mode the exit partner should discharge his liabilities in respect of LLP and even the partner should responsible after resignation of his/her decision at that period was partner.
New Admission of Partner
As per the LLP Agreement and first schedule of LLP Act, without the consent of all existing partners no person can be admit in LLP. The LLP agreement can authorize for admission of new partner and authorize to existing partner to approval of new admission of partner.
Death of Partner
In case of death of any partner the legal heir of the deceased partner is entitled to admit in LLP and also entitle to receive accumulated profits or loss of deceased partner.
Removal of Partner
If LLP agreement having the provision of removal of partner after majority of voting they can be remove the partner.
Procedure for change of LLP Partner
- Partner meeting: Before any change the existing partners, LLP call a meeting for approval of the proposed change.
- Pass resolution to affect the change: To effect the changes in the LLP, the partners shall pass a resolution at the meeting of the partner. The resolution shall be authorised the existing designated partner.
- 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: 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. The application shall be filed with the help of a Practising professional including Company Secretary or Chartered Accountant.
- List of New partners or Removal
- KYC of new partners
- Copy of Resolution
- Digital signature
- Resignation of Removal partner