New partners are added or existing leave; it does not affect the status of the LLP, but surely impacts the growth of the business and responsibilities of other partners. The change in partners and their details can be affected only after the approval from the Ministry of Corporate Affairs. In case of a Limited Liability Partnership (LLP), 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 agreement.
To add or remove a partner from LLP, the consent of other partners must be obtained, which is followed by a change in the LLP Agreement and application to MCA to approve the changes. The application to MCA must be filed within 30 days of effective date of the change. The first thing one need to obtain to be a proposed designated director is digital signature. Then the proposed director can be added to the company with the consent of the shareholder. Anyone who is above 18 years of age can become a partner. The nationality of the person is not a factor. The procedure will take 10-15 working days. All important documents need to be submitted.
1) Why is the change of partners required?
Expertise with additional capital Inability of the existing Partner
Change in terms of Partnership
Number of Designated Partners is below the statutory limit
2) What documents required for Addition or Removal of partner?
Proof of Residence
Digital Signature Certificate