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Change LLP Partners - Admission, Resignation or Death
LLP’s partners may change if any of the following events happen:
- Admission of New Partner without transfer or without transfer of partnership rights
- Resignation of a partner
- Death of a Partner
- Removal of Partner
Admission of a New Partner
LLP may admit new partner in the LLP by diluting their profit rights or some of the partner transfer his right to new partner. For example A & B are partner holding 50% rights in the LLP and if C is admitted by giving 20% rights, new ratio will be 40%, 40% and 20%. Otherwise, if B transfer 20% of this rights to C then new ratio will be 50%,30% and 20%. Both case documentation are different.
Resignation of a Partner
If a partner resign from LLP subject to provision of LLP agreement, is entitled to receive amount contributed to the capital of LLP and share of accumulated profit after deducting accumulated losses if any.
Removal of a Partner
Partners of an LLP can remove another partner subject to the provisions of LLP agreement if provided.
In all above four cases, compliance of regulation and filing with ROC is required to effect the changes.
Death of a Partner
In the event of death of partner, legal representatives of deceased partner is entitled to receive mount contributed to the capital of LLP and share of accumulated profit after deducting accumulated losses if any.
Requirements to Change LLP Partners
- Existing LLP Agreement: Since, LLP is governed by LLP agreement, present LLP agreement need detailed study to identify steps involved for partners change.
- New Partner as Designated Partner: If New partner is admitted as Designated Partner, then DIN number to be obtained by filing necessary documents.
- Amendment of Documents: Admission of new partner or resignation amount to amendment to LLP agreement.
- PAN copy self attested
- Address Proof self attested
- Digital Signature Application