What is Limited liability partnership?
LLP is a kind of business entity which brings together the advantages of both partnership & company where one partner is not responsible for other partners’ negligence or misconduct. Each partner has limited liability towards the organization. No one is personally liable to pay out of their personal property for any liability that arises towards the organization.
Every LLP shall have a least two designated partners, a least one of which must be resident in India. To add a new partner to existing LLP consent of all partners is required. However, if the LLP agreement allows that one partner can add new partner without the consent of other partners, then the consent of all partners is not required.
Procedure for Appointment of designated partner to LLP
- A designated partner can be Appointment to an existing LLP with the consent of all existing partners of LLP as per the provisions of section 25 of LLP Act, 2008.
- Liabilities of proposed designated partner Rights and liabilities of proposed designated partner will be decided to vide the LLP agreement entered by the existing partners of the LLP.
- Existing partners After getting the consent of existing partners for admission of a proposed designated partner in a duly convened meeting a supplementary LLP Agreement needs to be drafted and filed with Registrar of Companies.
- Consent of proposed designated partner is also required to be obtained from him/her in the prescribed form.
- After the appointment, it is required by the LLP to intimate concerned Registrar of companies about the change in E-Form LLP-4 after getting it certified by practicing CA/CS/CMA within 30 days of appointment.
- Supplementary LLP Agreement is also required to be filed with the concerned Registrar of Companies in E-Form LLP-3, within 30 days of the appointment of designated partner.
Documents Required for Appointment of designated partner to LLP
Document for Appointment of designated partner to LLP
- Copy of Aadhar card of proposed designated partner.
- Copy of PAN Card.
- Passport sized photograph.
- Scanned copy of signature.
- Existing LLP Agreement.