TIPS TO ADD NEW PARTNERS TO AN LLP
To add another Partner to a current LLP, consent of
every current Partner is normally required. In any case, if the LLP agreement
permits, one Partner can likewise have the powers to concede new Partners to
the LLP without consent of all the current Partners in the LLP. The new Partner
wishing to join the LLP must give intimation of his/her aim to join the LLP in
Form 6. Once, the individual is conceded as another Partner, the LLP needs to
document Form 4 within 30 days from the date he/she moves toward becoming
Partner in the LLP. For that an LLP Form 4 must be signed by a current
Designated Partner.
However, if the LLP agreement permits, one Partner can
also have the powers to admit new Partners to the LLP without consent of all
the existing Partners in the LLP. Further, a certificate is required from a
practicing Company Secretary or Chartered Accountant such that the CS/CA has
confirmed every details of the partner addition including the books and records
of the LLP and found them to be right. Each LLP should have at least 2
accomplices and out of them, 2 will go about as designated partners who take a
work on behalf of the partners in everyday activity. Once delegated, a partner
or a designated partner can be changed, removed or selected.
Moreover, to the above, a LLP agreement for including
Partner must be executed as an addendum to the current LLP Agreement. A Limited
Liability Partnership (LLP) is governed according to the guidelines of Limited
Liability Partnership Act, 2008. In the present time, a LLP is increasing more
popularity than a Private or a Limited Company type of business on account of
its simple nature and the lesser compliances. Procedures for adding new
partners to an LLP is as follows,
1)
Name proof and
address proof of the person to be appointed including PAN of the same.
2)
Consent to act as
partner or designated partner.
3)
Details of other
partnership, directorship, if any.
4)
Copy of the
minutes of the decision/ resolution/ consent of the partners authorizing.
5)
Person to act as
partner/ designated partner in case of company or LLP as partner.
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