In adding or removing a partner it is quite obvious that consent of all the other existing partners is needed. But the LLP agreement can play a turning point in this process if it allows anyone partner can add or remove a new partner without concerning existing ones. On the other hand, the new partner who longs to join the firm has to provide his or her intimation in Form 6 that states their intention of joining the LLP.
It might be a possibility that the situation of adding or eliminating a partner in the LLP occurs after online registration of LLP and the firm is completed. Along with that the need for introducing or removing a partner might usually occur when business needs more funds as capital. There are several other reasons also like retirement or resigning of any existing partner, inefficiency of partner, need to appoint someone in a specific field, etc. Now, you might be wondering about the procedure of addition or removal of a partner, it could be done with following these simple steps given below-
And once a partner is appointed, it becomes quite essential to provide all the information to the company’s concerning registrar. This means that the registrar under who the office in which LLP was earlier registered should be informed. In the e-form that is available on the government site within a month of new partner’s appointment.
When it comes to addition or removal of a new partner or an existing partner in the LLP there are a number of questions that are asked quite frequently, here are some of them.
More than 18 years of age and have a sound mind
He or she should not be insolvent
No pending application of insolvency
Now, when you are well aware of the procedure of adding or removing a partner in the LLP always consider the fact that their addition or removal must be a benefit for your firm otherwise it will just be unnecessary paper works.