A Limited Liability Partnership is a partnership in which some or all partners have limited liabilities. LLP must have at least one person known as “general partner” who has unlimited liability. Every LLP must have a minimum of 2 partners and out of them, 2 shall act as the Designated Partners. A Designated Partner should work on behalf of the partners and participate in the day to day activities of the LLP. The LLP can appoint, change, or remove a Designated Partner.
The rules of Limited Liability Partnership Act, 2008 is applicable to a Limited Liability Partnership (LLP). LLP is gaining more popularity because of its easy nature and lesser compliances.
Apply for Digital Signature Certificate i.e. DSC of the Designated Partner
After the DSC, apply for DPIN (Designated Partner Identification Number) in Form DIR-3 along with address proof and identity proof of the applicant
Once MCA allots the DPIN to the Designated Partner, all the existing partners of LLP should call a meeting and pass a resolution to add the designated partner in the Partnership Deed
A supplementary partnership deed will be drafted in which the new partners name will be added. Written consent of the new partner will be taken
After preparation of all documents, file Form-4 within 30 days on MCA Portal for the appointment of Designated Partner to the LLP
After filing Form-4, along with supplementary and original partnership deed file Form-3 on MCA Portal within 30 days of appointment
Once all these forms are filed, the name of designated partner will be added to the LLP master data on MCA. If you fail to file the application within prescribed period, an additional fee of Rs.100 per day of delay is applicable
You should amend the LLP Agreement by entering into a Supplement Deed. The LLP Agreement shall provide the details of changes including the additional capital introduced, new profit sharing ratio, and any other insertion or deletion of clauses in the original LLP Agreement. You must file the Supplement Deed with the MCA within 30 days of the date of execution.
If there is added capital to the LLP, the stamp duty should be paid according to the added capital in LLP and as per the rate prescribed by the respective state. If there is no capital added in LLP on addition and removal of a partner, the stamp duty of Rs. 100 should be paid.
While the addition of a partner in LLP, the Partner or Designated Partner may contribute the amount agreed by and between all the partners including present in any form whether tangible or intangible. However, it is not mandatory to bring capital to LLP.