Add Designated Partner

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Overview

At least two individuals who are partners shall act as designated partners.

These partners must have a Designated Partner Identification Number and their names must feature in the LLP partner agreement.

These are easy to apply and the compliances are lesser when compared to other types of company registrations.

There is no maximum limit on a number of partners.

There is also no restriction on joining and leaving an LLP. One can easily join or leave it.

The ownership can also be transferred from one person to another without much difficulty.

Overview

PAN and Aadhaar Card

Both PAN and Aadhaar Card of all Indian Shareholders and Directors

Identity Proof

Either Voter ID, Passport, or Driving License of the Shareholders and Directors.

Proof of Address

Copy of the latest Telephone Bill, Electricity Bill, or Bank Account Statement of the Shareholders and Directors

Photographs

Latest passport size photographs of all the Shareholders and Directors

Business Address Proof

Either of the latest Utility Bill (Electricity, Telephone, Gas, Water) or Property Tax Bill of the registered office address. Rent agreement and NOC from the owner in case of rented property

Proof of Address

Copy of the latest Telephone Bill, Electricity Bill, or Bank Account Statement of the Shareholders and Directors

Why is the change of partners required?

Expertise with additional capital

Normally, a partner is appointed either for need of capital or the expertise. With increase in capital, the borrowing power of the firm increases with loan opportunities. Admission of a partner not only benefits in form of capital but also leverages the skills and knowledge. The diversity of knowledge and goodwill base helps the business to grow far.

Inability of the existing Partner

The existing partner of the LLP may not be able to contribute his full time after a certain period, whether due to retirement or other reasons. Although the exit of one partner may not affect the existence LLP, it must be dealt with by intimation to MCA and also the appointment of a new partner, if required.

Change in terms of Partnership

It is an agreement between the partners, the terms can be changed mutually at any time. The change might impact the willingness of one or other partner. According to requirements and terms, need both, the addition or removal of a partner may arise. And consequently, the due process must be followed.

Number of Designated Partners is below the statutory limit

Every LLP requires maintaining minimum 2 Designated Partners all time. If due to the resignation of a designated partner from LLP, the total designated partners reduce below 2, the LLP must appoint a new designated Partner or change the position (status) of the existing another partner.

Documents required for Addition or Removal of partner

Photograph

Passport size photograph of the partner to be appointed

PAN Card

Self-attested PAN card of the partner to be appointed

Proof of Residence

Aadhar Card/ Voter ID/ Passport/ Driving License partner to be appointed

Digital Signature Certificate

DSC of the continuing partner and partner to be removed

LLP Agreement

LLP Agreement executed while registration and the modifications thereto

Filings first

Change partners in 3 Easy Steps

1. Answer Quick Questions

Pick a Package that best fits your requirements
Spare less than 10 minutes to fill in our Questionnaires
Provide basic details & documents required for change
Make payment through secured payment gateways

2. Experts are Here to Help

Assigned Relationship Manager
Supplementary agreement for a change of partners
Preparation of other necessary documents
Preparation and filing of Application
Updated MCA master data with modified details

3. Partner is Added or Removed

All it takes is 7 – 10 working days*

Filings first

Process for addition or removal of partners

Day 1

Consultancy for the requirement of change of partners
Collection of basic Information & documents
Application for DSC (for partner to be appointed)

Day 2 - 3

Drafting of necessary Resolutions and Documents
Drafting of Supplementary Agreement
Provide documents required provided after signature

Day 4 - 7

All it takes is 10-12 working days*
Let’s keep your business compliant and protected. Time to get on a free assessment call

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Have Questions? Find Answers Here

Whether the LLP Agreement is to be updated to add or remove Partner in the LLP?

Yes, the LLP agreement must be modified with terms of addition or removal by execution of the supplementary deed. All the details including the change of capital and change in terms and profit sharing ratio will be provided in the deed.

When the Supplementary deed shall be filed with MCA?

The Supplementary Deed must be filed within 30 days from effective date of change or from the date of execution (whichever falls earlier. The delay in filing levies additional fee of Rs 100 per day till the date of filing.

What is difference between Designated Partner and Partner?

The essential difference between both types of partners is the accountability. Where the partner is responsible only for acts and omissions by himself, the Designated
Partners are additionally responsible towards compliance and operational matters of the LLP, including penal provisions.

What should I do if my other Partner has resigned and I am the only one left now?

The LLP must appoint a new designated partner within 6 months from effective date. However, in case the LLP already has another partner, the status of such a partner can be changed to Designated Partner.

Whether Stamp Duty is required to be paid on Supplementary Deed?

The stamp duty shall be paid according to the added capital in the LLP as per the rate prescribed by the respective state. Where there is the addition of capital while addition or removal, the Supplementary Agreement shall be executed by payment of Rs 100/- as stamp duty.

What are the requirements to be a Partner/ Designated Partner of the LLP?

There are no limitations in terms of citizenship or residency to become a Partner. Therefore, the LLP Act, 2008 allows Foreign Nationals including Foreign Companies & LLPs to become LLP in India provided at least one Designated Partner is Indian Resident. The proposed Designated Partner shall hold valid DIN and not be disqualified.

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