At least two people are needed as designated partner in an llp company registration. However, there is no restriction on the maximum number of partners. Every partner has limited liability, which denotes they are not accountable for any liability by the LLP; their liability is restricted to the unpaid amount of their assets contribution.
For a general partnership firm, there are 50 partners, but in an LLP, there is no bound. In a limited liability partnership firm, there is no constraint in including the partners or designated partners. They can be included anytime during the functioning duration of the business.
No meeting can be held without the permission of current partners, and if the partners agree to include any partner, then that person’s details must be added to the LLP agreement. The limited liability partnership firm can add or withdraw any partner from the LLP during its business tenure.
There are two kinds of partners in LLP – designated and usual partners. A designated partner conducts every function that is mandatory for the business. His role is similar to a director in the firm. He participates in everyday activities and performs every process necessary for the business. A designated partner has DSC and DIN prior to his appointment, but for a partner’s appointment, it is optional to have DSC and DIN preceding the appointment.
- What Are The Rights And Duties To Add Partner To Limited Liability Partnership?
LLP partners need to continue the business of the LLP by being honest to each other and giving the proper accounts and information about everything impacting the LLP to the partner.
Every partner has the right to participate in the LLP business and get access to examine and replicate the LLP accounts book.
Each partner of a limited liability partnership must repay the LLP for any loss due to a scam in the company's business.
The jurisdiction of a partner to join the LLP for any business deal in a general manner unites the LLP.
Every right, property, and asset gained with the wealth of the LLP fits with the LLP.
Procedure To Add A New Partner To A LLP
Current Partner’s Approval
You need to get the approval to Add partner to LLP from the current partners in the LLP meeting, and the approval must be in the resolution form. The partners should agree to Add Partner to Limited Liability Partnership.
Sanctioning Designated Partner
To comply with each requirement to Add Partner in Limited Liability Partnership, a designated partner will be sanctioned to sign the forms, implement the deed, and follow every step for this appointment.
Approval From New Partner
Consent should be taken in written form from the designated partner who will be appointed in the LLP.
Completion Of Supplementary LLP Agreement
After taking approval from the projected partner and current partner, a supplementary LLP agreement must be implemented, and the specifications of the new partner will be stated in the LLP agreement. The same will be attested on 100 INR stamp paper.
The LLP agreement will be attested on the state stamp paper, and the worth of the stamp paper is decided according to the registered office’s location and the partner’s wealth contribution.
Delivery Of Form-3 & Form-4
After the LLP supplementary agreement is implemented, it must be delivered to the ROC in form-3 and the specifications of the admission of a novel partner must be given in form-4.
Form-3 must be delivered with the form-4 with the approval letter of the projected partner, supplementary agreement, and a resolution copy with the required fees.
Consent From ROC
Suppose the registrar is content with the application for the change of the limited liability partnership firm agreement and the inclusion of the partner. In that case, he will provide his approval, and after giving the endorsement, he will get the update in the MCA database.
Documents To Add A New Partner To A LLP
FAQ's
Few doubts important to be resolved quickly
Only a natural person can be chosen as a designated partner.
Yes, a company registered as per the companies act 2013, or any preceding act can become a partner in the limited liability partnership. The company is an individual legal unit with a separate identity and can be the partner in limited liability.
There is a minimum of two designated partners in limited liability and no maximum limit as stated by the government.
Yes. If there are modifications in the LLP, it must be stated in the LLP agreement. If you Add Partner in Limited Liability Partnership, his specifications must be added to the agreement. Therefore, it is vital to change the agreement for the partner appointment and get approval from the ROC.
The agreement must be attested on 100 INR stamp paper of the state where the LLP registration office is located. If the partner raises the wealth contribution, then the value of the stamp paper rises to 100 INR, and the worth of the stamp paper is decided based on the increased value.
A llp registration online is owned by partners or members. There are no shareholders or directors. LLPs need a minimum of two members. There is no limit to the maximum number of LLP partners.
- A designated partner has a position in LLP similar to the director in the company.
- Designated partners should have DSC and DPIN preceding the appointment, but to appoint non-designated partners, there is no requirement for DSC or DPIN in limited liability partnership registration.
- Designated partner sanctions to sign the forms delivered to the ROC in llp company registration.
- Only a person can be the designated partner, but any individual can be the partner, i.e. individual, public limited company, private limited company, body corporate, or LLP.
To Add Partner in Limited Liability Partnership generally takes 1-2 working days based on the endorsement of the ROC and the receipt of the document from the clients.
No. For designated partners, the signatory specifications of the limited liability partnership will get updated on the MCA portal when you Add Partner to Limited Liability Partnership. For the addition of only partners, there would be no acknowledgement or receipt, and the supplemental LLP agreement is the only proof when you Add Partner in Limited Liability Partnership.
