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Removal of all existing partners and adding new partners in LLP

02 March 2024

Greetings of the day to all Professionals and Students,

We have a LLP which have 2 designated partners and want to remove those partners and add 3 new partners, is it possible in a single supplemental deed or not and what is chronological process for it.

Thanks in advance for your kind help.

Regards

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7 Replies

sabyasachi mukherjee (26219 Points)
Replied 03 March 2024

As per partnership deed

RAJA P M ("Do the Right Thing...!!!") (127400 Points)
Replied 03 March 2024

Yes You can Add and Remove in Single Deed.
But, Addition will be First..

1 Like

sabyasachi mukherjee (26219 Points)
Replied 03 March 2024

It can be consequential.

Sharath chandra (Accountant) (1215 Points)
Replied 03 March 2024

Sir i need the deed format... available with you or online?

RAJA P M ("Do the Right Thing...!!!") (127400 Points)
Replied 03 March 2024

Better to check the availability in online...

I will check it in my system. If I found then will share You...

Bcoz, It's used before 10 years back. and systems are format (ed)...

sorry...🙏

1 Like

Yasaswi Gomes new (Finance ) (4487 Points)
Replied 06 March 2024

To add or remove partners in an LLP, you’ll need to complete the necessary forms and follow the prescribed procedure. Here are the steps and forms involved:

Obtain Consent from Existing Partners:
- Before proceeding, ensure that the existing partners agree to the proposed changes.
- Obtain their consent for adding new partners and removing the current designated partners.
Amend the LLP Agreement:
- Prepare a supplementary partnership deed reflecting the desired modifications:
  - Add New Partners: Include the details of the three new partners.
  - Remove Existing Designated Partners: Specify the removal of the current designated partners.
- Update the LLP Agreement to reflect the revised partnership structure.
Application to the Ministry of Corporate Affairs (MCA):
- File the necessary forms with the MCA within 30 days from the effective date of the changes.
- The forms required are LLP Form 3 and LLP Form 4:
  - LLP Form 3: Contains details of the changes, including the notice of resignation/removal (if applicable) and consent to act as a partner/designated partner.
  To add or remove partners in an LLP, you'll need to complete the necessary forms and follow the prescribed procedure. Here are the steps and forms involved:
  
  1. **Obtain Consent from Existing Partners**:
  - Before proceeding, ensure that the existing partners agree to the proposed changes.
  - Obtain their consent for adding new partners and removing the current designated partners.
  
  2. **Amend the LLP Agreement**:
  - Prepare a supplementary partnership deed reflecting the desired modifications:
  - **Add New Partners**: Include the details of the three new partners.
  - **Remove Existing Designated Partners**: Specify the removal of the current designated partners.
  - Update the LLP Agreement to reflect the revised partnership structure.
  
  3. **Application to the Ministry of Corporate Affairs (MCA)**:
  - File the necessary forms with the MCA within **30 days** from the effective date of the changes.
  - The forms required are **LLP Form 3** and **LLP Form 4**:
  - **LLP Form 3**: Contains details of the changes, including the notice of resignation/removal (if applicable) and consent to act as a partner/designated partner.
  - **LLP Form 4**: Filed for change in partners, containing a statement of consent and interest in other entities by the newly inducted partner and the resignation letter by the ceased partner (if applicable)².
  
  Remember to consult legal professionals or company secretaries to ensure compliance with all legal requirements during this process. 📜🤝