ARE YOU GOING TO ADD PARTNERS TO YOUR COMPANY, WE PROVIDE THINGS YOU SHOULD CONSIDER BEFORE ADDING PARTNERS TO YOUR COMPANY.

            Thinking of expanding your business by adding new partners to it, then you should consider these steps for the success of your organisation. LimitedLiability Partnership (LLP) is  generally  a new kind of business entity in India that consolidates the benefits of both the Company and Partnership into a single form  of organisation and one partner isn't  responsible  or at risk for another  responsible  behaviour or carelessness. Therefore, all accomplices have a form of limited liability for every individual’s protection within the partnership, like that of the shareholders of a company. For various reasons, there might be a requirement for adding another Partner to a current Partnership.

In this article, we look at the procedure for Adding New Partner to the business. In order to admit a new partner, you will have to make amendments in the existing Partnership Deed. Section 30 of Indian Partnership Act, requires that such partner can be introduced only with the consent of the entire existing partner. The consent is put in writing by signing an agreement which is called as Deed of Admission.

The Deed of Admission must contain the terms regularly contained in Partnership deed along with the terms of introduction on new partner. It may specifically contains the details of capital introduced by new partner, the new profit and loss sharing ratio amongst all partners, new terms of payment of remuneration to the partners and other terms and conditions laying down rights and duties of partners, etc. The Deed of Admission must bear the necessary stamp payable under the stamp act applicable in the state in which the partnership deed is signed. It is also advisable to get the deed registered with the Register of Firms of the concerned state in which partnership business is constituted. This process may take few weeks to complete and the steps involved are,

1)     Apply for Digital Signature Certificate.

2)     Apply for DIN Number- after the DSC; the Director Identification Number of the Director will be applied in the form DIR – 3 along with the address proof and the identity proof of the applicant.

3)     Once the DIN is allotted to the designated partner, all the existing partners of the LLP will call a meeting and pass a resolution to add a designated partner in the partnership deed.

4)     A supplementary partnership deed will be drafted in which the new partner’s name will be added.

5)     Then the consent of the incoming partner will be taken in writing.

6)     After these documents are prepared, Form – 4 of LLP will be filed within 30 days of the appointment.

7)     After filing this form, FORM – 3 will be filed, along with the supplementary and the original partnership deed within 30 days of appointment.

8)     After the filing of all these forms, the name of the designated partner will be added and will be seen on the site if the Ministry of Corporate Affairs.

9)     If Form – 3 and Form – 4 are filed within 30 days there is an additional fee on each form of Rs. 100/- per day.

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