Add Partner to LLP

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Adding Partner to an LLP

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Add Partners or Designated Partners to LLP

LLP is run by its partners. LLP is a type of business entity that offers advantages of both company and a partnership firm. In the case of LLP, partner enjoys the benefit of limited liability and a separate legal entity. There are many reasons to add a new partner in LLP such as death of the existing partner, partner fired from the company due to negligence or misconduct in work etc. New partners are added or existing partners leave the organization but it does not affect the status of LLP but it surely impacts the business as well as the responsibilities of other partners. The changes are made in the partners and their details after getting the approval from ministry of corporate affairs (MCA).

In order to add a partner to an LLP, the consent of other partners must be obtained along with change in LLP agreement and application to MCA for approval. The application must be filed to MCA within 30 days from the effective date of change.

Any person proposing to become a partner must obtain a digital signature certificate (DSC) and director identification number (DIN). Any person who is having age of 18 years or above can obtain DIN. Indian nationals, foreign nationals, NRI’S can too obtain DIN and can be appointed as partners.

What Is Included In Our Package?

Eligibility Consultation

Document Preparation

Application Drafting

Government Fees

Documents Required For Adding A New Partner

Passport size photograph
PAN card copy
Residence proof (Aadhar card/ Voter-id card/ Driving license)
LLP agreement
Digital signature certificate of the adding partner
DIN number
Form 3
Form 4

Procedure for Adding Partner in LLP

The procedure for adding partner in LLP is as follows –

In the first step, the most important thing for any person proposing to become a partner in an LLP is that he/she should have Director Identification number (DIN) and Digital signature certificate (DSC). If not, he has to apply for the same first.
In the second step after getting DSC, proposed partner has to apply for DIN number in the form DIR-3 along with the identity and address proof.
After DIN is allocated to the proposed partner, consent of all the existing partners of LLP will be taken by holding a meeting and passing resolution to add a new partner in the partnership deed.
In the fourth step, a supplementary partnership deed will be drafted and the name of the new partner is added.
In the fifth step, written consent of the incoming partner will be taken.
After preparing all these documents, form-4 of LLP will be filed within 30 days of the appointment.
After filing form-4, form-3 will be filed along with original partnership and supplementary partnership deed within 30 days of appointment.
Finally, when all the forms filed become approved, the name of the proposed partner will be added on the website of ministry of corporate affairs (MCA).

Penalty

If company is unable to file form-3 & form-4 within 30 days, company will be charged with additional fee of Rs.100 per day.

Adding A New Partner FAQ’S

Whether it is compulsory to obtain DIN before becoming a partner in an LLP?

Yes, it is compulsory to obtain DIN before becoming a partner in an LLP.

Which form is used by a partner to apply DIN?

DIR-3 form is used by a partner to apply DIN along with the identity and address proof.

Which authority is responsible for approving application of new partner in an LLP?

Ministry of corporate affairs is responsible for approving application of new partner in an LLP.

What is the penalty for non-filing of Form-3 & Form-4?