A Limited Liability Partnership (LLP) is governed as per the rules of Limited Liability Partnership Act, 2008. In today’s era, an LLP is gaining more popularity than a Private or a Limited Company form of business because of its easy nature and the lesser compliances. Every LLP should have a minimum of 2 partners and out of them, 2 shall act as designated partners who work on behalf of the partners and participate in the day-to-day activities. Once appointed, a partner or a designated partner can be changed, removed or appointed. Hence after incorporation of LLP every one must know how to add and remove partners from LLP.

Procedure to add a designated partner

Once the LLP falls short of partners due to death or resignation, we can add them be following the basis steps:-

1. Apply for Digital Signature Certificate:
2. Apply for DPIN/DIN Number- After the DSC, DPIN 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. The consent of the incoming partner will be taken in writing.
6. After that 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.

Procedure to Remove Designated Partner from LLP by Majourity

Many a times LLPS donot work as planned hence to bring the working on track all the partners have to unanimously take a corrective steps so that the entity does not bear the consequence of the errors. However it is to be noted that a Partner from a LLP cannot be fired by other partner unless the LLP agreement has provided such powers to partners. Hence it is important to note that LLP Agreement is key document for firing partner by majority of other partners.

3 Step for Removal/ Resign Partner From LLP

Step 1: Pass resolution for Removal of Partner

Partners shall pass written resolution after conducting meeting with partner. By this resolution partners authorize one of partner on behalf of LLP & firm to act for legal proceedings. Partner who is authorized to carry legal formalities of change in partner shall hold valid DSC & DIN/DPIN number.

1. Execute Resolution of Letter Head of LLP
2. Resolution of required Signature of existing partners and authorized partner
3. Details about subject matter
4. Affix Stamp of LLP

Step 2: Execute Amendment to LLP Agreement

As per LLP Act 2008, LLP Agreement is a source document base for carrying business. This document needs to be amended and necessary filing needs to be done in case of removing partner. This deed needs to be signed by all the removing and existing partners. LLP needs to ensure that it has minimum two designated partners for carrying business.

• It should contain terms & Condition towards removal of Partner.
• Previous LLP agreement can be amended through Supplementary agreement as well
• In case there is no change in capital this agreement can be executed on Rs.100/- stamp paper.
• In case there is change in capital contribution of LLP then bond value applicable as per Stamp Act provisions.

This supplementary agreement shall have sign of existing partner and removing partner

Step 3: File Form 4 & Form 3 towards Removal of Partner from LLP.

MCA provides Form 4 for intimating changes in partners of LLP.

Attachments to Form 4 of LLP

• Consent to act as partner/ designated partner
• Resolution for Authorizing partner
• Consent letter from Removing / retiring partner
• Other Optional attachments

After execution of supplementary agreement for removal of partner,this agreement need to be submitted within 30 days to MCA.

Attachments to Form 3 of LLP

• Existing LLP agreement
• New supplementary LLP Agreement
• Optional attachment of if any