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.

Again 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 practising 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 compliance. 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 authorising.

5)     Person to act as partner/ designated partner in case of company or LLP as partner.

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