Appointment of a Designated Partner in Your LLP

In LLPs, designated partners manage daily operations and legal compliance, serving as separate entities for management and representation, unlike traditional partnerships. They handle day-to-day tasks, meet statutory requirements, and represent the business before government authorities.

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Four Steps to Add a Partner in a Limited Liability Partnership (LLP)

Fill the Form

Provide business details

Add to cart

Pay the required fee online

Submit Documents

Upload required papers

Certificate delivery

Official Document Delivery

Find the best plan for your needs

Basic Plan

Add to Cart
₹ 2,999
+GST
  • Consultation on Appointment Process
  • Preparation of Consent Documents for New Partner
  • Filing of Form 4 for Partner Addition

Standard Plan

Add to Cart
₹ 5,499
+GST

Basic Plan
+

  • DPIN of Incoming Partner
  • Digital Signature Certificate (DSC) for the new partner
  • LLP Amendment Agreement Drafting
  • Filing of Form 3 for LLP agreement Amendment

Premium Plan

Add to Cart
₹ 7,499
+GST

Standard Plan
+

  • Dedicated Account Manager
  • Compliance Calendar for New Partner
  • Assistance in updating GST, PT, ESI, PF Records

Overview of Adding a Partner

Adding a partner to a Limited Liability Partnership (LLP) in India involves a formal process as per the LLP Act, 2008. The existing partners must first agree to the addition, which typically requires amending the LLP Agreement. This can be done through a resolution passed at a partners’ meeting.

Once the agreement is amended, the LLP must file Form 4 with the Registrar of Companies (RoC) within 30 days of the change, providing details of the new partner. Additionally, Form 3, which includes the amended LLP Agreement, must also be filed with the RoC. Upon approval of these forms, the new partner is officially added to the LLP, and all necessary updates must be reflected in the LLP’s records and documents.

blank-paper-sheet-with-small-scooter-table
blank-paper-sheet-with-small-scooter-table

Adding a partner to a Limited Liability Partnership (LLP) in India involves a formal process as per the LLP Act, 2008. The existing partners must first agree to the addition, which typically requires amending the LLP Agreement. This can be done through a resolution passed at a partners’ meeting.

Once the agreement is amended, the LLP must file Form 4 with the Registrar of Companies (RoC) within 30 days of the change, providing details of the new partner. Additionally, Form 3, which includes the amended LLP Agreement, must also be filed with the RoC. Upon approval of these forms, the new partner is officially added to the LLP, and all necessary updates must be reflected in the LLP’s records and documents.

Why Add a Partner?

Adding a partner to an LLP offers several key benefits:

Expertise and Skills
Capital Injection
Business Expansion
Shared Responsibility
Risk Sharing
Succession Planning
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Expertise and Skills

New partners bring in fresh expertise and skills, enhancing innovation and problem-solving capabilities.

Capital Injection

Additional partners can provide extra financial resources for business growth or operational improvements.

Business Expansion

More partners enable the LLP to explore new markets and business opportunities.

Shared Responsibility

The addition of partners allows for a more efficient distribution of management tasks and responsibilities.

Risk Sharing

With more partners, risks are distributed among more individuals, reducing the burden on each and potentially encouraging bolder business strategies.

Succession Planning

Introducing new partners helps in planning for the future of the LLP, ensuring its sustainability and continuity.

Procedure for Adding a Partner to an LLP

Adding a partner to your Limited Liability Partnership (LLP) involves several steps and the completion of various formalities. Here’s a detailed breakdown of the process:

  • The new partner must obtain a DSC, a secure digital key that certifies the holder’s identity.
  • This is used for signing electronic documents submitted to the Ministry of Corporate Affairs (MCA).
  • Apply for a DIN for the designated partner using Form DIR-3.
  • This process involves submitting proof of identity and address.
  • DIN is a unique number allotted by the MCA, mandatory for anyone looking to be a designated partner in an LLP.
  • Existing partners must hold a meeting and pass a resolution agreeing to add the new partner.
  • The resolution should be on the LLP’s letterhead, signed by all partners, and state the details of the addition.
  • This resolution is often stamped with the LLP’s seal to formalize it.
  • Prepare a supplementary deed to the original partnership agreement.
  • This deed should include the new partner’s details, their role, responsibilities, and the terms of their induction.

Obtain a formal written consent from the incoming partner, stating their willingness to join the LLP.

  • Within 30 days of the appointment, file Form – 4 to inform the MCA about the addition of the new partner.
  • This form includes details of the appointed designated partner.
  • Also file Form – 3, along with the original and supplementary partnership deeds, within 30 days.
  • These documents are necessary to update the LLP’s records with the MCA.
  • After submission, the MCA processes the forms and updates the LLP’s records.
  • The new partner’s name will then be visible on the MCA’s website.

Note on Timely Filing:

To avoid incurring late fees, it is crucial to ensure the timely submission of Forms – 3 and – 4. If these forms are filed late, a penalty is levied, which amounts to Rs. 100 per day for each form.

Submit Required Amendment Applications Under the Following Legislation

If you need to make amendments or modifications to your business operations or compliance with various regulations, you may be required to file necessary amendment applications under the following acts:

 

► Goods and Services Act
► Shops & Establishment Act
► Factories Act
► Foreign Exchange Management Act
► Inter-State Migrant Workmen Act
► Private Security Agency Act
► Employees’ Provident Fund (EPF)
► Employees’ State Insurance (ESI)
► Other Labor Laws
► Industry-Specific Laws


These applications are crucial to ensure your business is in compliance with the ever-evolving legal landscape, and they may vary depending on your specific circumstances and the nature of your business. Always consult with relevant authorities or legal experts for guidance on filing the necessary amendments under these acts.

How V Smart Auditor Can Help ?

  • Eligibility Assessment

    It evaluates the eligibility of potential partners based on legal requirements, ensuring compliance with Indian laws such as the Companies Act and LLP Act.

  • Document Preparation

    Assists in preparing and reviewing necessary documents such as consent letters, partner’s personal information, and proof of address and identity, ensuring they meet legal standards.

  • Filing Forms with MCA

    Guides through the process of filling and submitting forms required by the Ministry of Corporate Affairs (MCA), like Form 3 (Information with regard to limited liability partnership agreement and changes, if any, made therein) and Form 4 (Notice of appointment, cessation, change in name/address/designation of a designated partner or partner).

  • Digital Signature Certificates (DSC)

    Helps in obtaining Digital Signature Certificates for new partners, which is mandatory for signing electronic documents submitted to MCA.

  • LLP Agreement Amendment

    Assists in the amendment of the LLP Agreement to include the new partner, outlining their roles, responsibilities, and profit-sharing ratio.

  • Compliance and Advisory

    Provides advice on compliance with statutory obligations post-addition of the partner, like changes in PAN, bank account details, and other regulatory requirements. It ensures that the LLP stays compliant with ongoing legal and financial regulations.

Frequently Asked Question's

How can a person become a partner of an LLP?

Persons, who subscribed to the “Incorporation Document” at the time of incorporation of LLP, shall be partners of LLP.
After incorporation, new partners can be admitted to the LLP as per the conditions and requirements of the LLP Agreement.

What will be the obligation of a partner in case he changes his name or address?

Every partner shall inform the LLP of any change in his name or address within fifteen days of such change.
In turn, the LLP would be obliged to file such details with the Registrar within thirty days of such change in Form 4.

What are the qualifications for becoming a partner?

Any individual or body corporate may be a partner in an LLP. However, an individual shall not be capable of becoming a partner of a LLP if—
he is of unsound mind by a Court of competent jurisdiction and the finding is in force;
he is an undischarged insolvent; or
he has applied to be adjudicated insolvent, and his application is pending.

How are partners added to LLP?

The Partners can be added by entering into the Supplemental LLP Agreement to the Original LLP Agreement.
No special approval is required from any other authorities. However, the addition of the Partners in the LLP is to be intimated to the jurisdictional ROC by filing LLP Forms No. 3 and 4 within 30 days of the execution of the supplemental LLP Agreement for the addition of the partners.

Is it compulsory for a new partner to bring the capital to the LLP?

Not all the incoming partners need to contribute to the capital of the LLP.
Partners may not bring in the additional contribution to the capital of the LLP.
However, whenever any incoming partner contributes to the capital of the LLP, then the capital ratio and the profit-sharing ratio may also change.

What forms will a designated partner have to fill at the time of addition?

The designated partner will have to fill out DIR Form 3 and Form 4 and submit it to the authorities to get added to the designated partners’ list of an LLP in India.

What are additional documents required for a foreign national who wants to be a designated partner?

Yes, a foreign national can be a designated partner in an LLP in India. He has to furnish his passport in addition to the documents required by Indian designated partners. Suppose his passport is in any foreign language other than English. In that case, he will have to get it apostilled, notarised, and then submit it.

How much time is needed for the addition of the Partner in LLP?

The addition of Partners usually takes 1-2working days, subject to the approval of the jurisdictional ROC and the receipt of documents from the clients.