For changing a partner in Limited Liability Partnership (LLP) in India you need to update the LLP agreement and file a request form with the MCA (Ministry of corporate affairs) as per the LLP rules in India.
But at first you need to get approval from existing partners and make changes to the limited liability partnership agreement.
This seems a bit confusing right, then let me explain to you in detail about the LLP partner change procedure in Assam, with the complete process and procedure.
What is a Limited Liability Partnership (LLP)?
This is a type of business structure governed by the Limited Liability Partnership Act, 2008 where two or more people join together to run a company and each person’s personal money is protected if something happens in the business.
As per the section 3 Act, an LLP is a separate legal entity and has continuous existence, meaning it continues to exist even after a change in business partners.
It combines the benefits of a partnership with the safety of a company, meaning the partners are only responsible for the business debts up to the amount they have invested in the business.
Add or Remove Partner in LLP Online
Here we will explain to you about the process to add and remove partners from LLP India:
Add New Partner in LLP India
- Ensure to take written consent from the new partner intending to join the LLP.
- Collect their PAN, Aadhaar, or any address proof along with a passport-size photo.
- Confirm that the new partner has a Digital Signature Certificate (DSC).
- If the new partner does not have a DPIN, it shall be applied for using Form DIR-3.
- There shall be a meeting among existing partners, and a resolution shall be passed to admit the new partner.
- A supplementary LLP agreement will need to be prepared, detailing the new partner, the capital contributions, and profit-sharing.
- Form 4 must then be filed on the MCA portal, attaching the consent letter, resolution, and proof of ID.
- Form 3 must be submitted on the MCA portal, along with the new LLP agreement.
- Make payment for the government filing fee online. All filings must be done within 30 days from the date of admitting the new partner.
Remove Partner From LLP India
- It’s mandatory to take a written resignation or concurrence from the partner who is leaving.
- Hold a meeting of existing partners regarding a resolution of acceptance for the partner’s removal or resignation.
- Amend the LLP agreement by removing the partner’s name and amending the profit-sharing ratio.
- Draft a supplementary LLP agreement indicating the modification.
- File Form 4 to the MCA portal with the resignation letter, resolution, and partner details.
- File Form 3 in the MCA portal with the updated LLP agreement.
- All government filing fees must be paid online.
- All the above filings must be completed within 30 days of the partner’s removal.
Mistakes to Avoid During Adding and Removing Partner in LLP
Not taking consent of other partners –
Always get written consent as needed within the LLP agreement.
- Ignoring the LLP Agreement Modification – Update and file the revised agreement with MCA.
- Not checking eligibility – Verify that the potential partner is not insolvent and is not disqualified.
- Delay in filing Form 4 & Form 3 – To avoid penalties, they should file the forms within 30 days.
- Not verifying KYC & documents – These documents must be obtained and verified as follows: PAN, Aadhaar, etc.
- No proper record of capital contribution – Update the contribution detail in the records and the agreement.
Mistakes to Avoid While Removing a Partner in LLP
- Failing to collect sufficient documents: like the resignation letter or the duly executed letter of consent; Leave a written record.
- Failure to Clear Dues – Settle profit shares and capital contribution liabilities before removal.
- Not updating LLP Agreement – Amendment and filing with MCA subsequent to the removal.
- If you delay filing Form 4 and Form 3 – Must be submitted within 30 days to avoid penalty.
- No public intimation – Banks, clients, and other stakeholders should be informed to avoid future liability issues.
- Ignoring Indemnity Clause – Ensure the out incoming partner is released from liability upon going forward, according to the agreement.
Conclusion
Changing a partner in LLC in Guwahati Assam requires careful commitment to legal procedure requirements to make the process smooth. Whenever you need to add a new partner or want to remove the existing one, or updating partner details it is essential to follow the LLP registration update process carefully through the MCA portal. Also all the things like LLP agreements, necessary approvals are all part of LLP partner change compliance India.
By following all the steps carefully you can successfully change LLP partners online without any other help. But if you need to consult someone for a professional point of view then take help from Regible Corporate Advisor LLP, the best LLP service provider in Guwahati Assam.
FAQs
How much is the government fee for adding and removing LLP online?
The government charges around ₹200–₹4,000 per form depending on the capital. But if you take legal help from any agency then the charges for this is ₹2,500 FORM 3 FILING (AFTER INCORPORATION, FOR INITIAL LLP AGREEMENT FILING).
What documents are required to change partners in LLP?
To change a partner in an LLP, the following documents are typically required:
- Consent letter from the incoming or outgoing partner
- Resolution passed by existing partners
- Supplementary LLP Agreement
- Identity and address proof of the new partner
- PAN Card and Aadhaar Card (for individuals)
- Digital Signature Certificate (DSC) of designated partners
- Form 3 and Form 4 filings on the MCA portal
Can I do this online by myself?
Yes, of course you can, but taking legal help makes the process more clear and smoother without any problem because sometimes legal things can get messy.
Who is the best LLP service provider in Assam?
Without a doubt Regible Corporate Advisor LLP is the best LLP service provider in Guwanti Assam. Contact them for further assistance.
How long does it take to change or add a partner?
The process usually takes around one to two weeks, done through MCA may come early.
