Resignation or Removal of Partner in LLP

The Resignation of partner is governed by LLP Agreement however Partner can resign from a LLP by providing notice of resignation in writing not less than 30 days to the LLP and other Partners of the LLP. In cases like death, insolvency or incompetency of a Partner or dissolution of the LLP, the Partner would automatically cease to be a Partner. LEGALRAJ will assist you to effectuate resignation or removal of Partner of LLP. The average time taken to file for resignation or removal of Partner is about 2 working days, subject to government processing time and client document submission.

Partners in the LLP are responsible for carrying out business of the LLP. A Partner in LLP can resign or can be removed for various reasons. Resignation or removal of Partner from LLP must be notified to the Registrar of Companies. The Resignation of partner is governed by LLP Agreement however Partner can resign from a LLP by providing notice of resignation in writing not less than 30 days to the LLP and other Partners of the LLP. In cases like death, insolvency or incompetency of a Partner or dissolution of the LLP.

RESIGNATION OR REMOVAL OF PARTNER IN LLP

 

 

Basic information

 

 

Partners in the LLP are responsible for carrying out business of the LLP. A Partner in LLP can resign or can be removed for various reasons. Resignation or removal of Partner from LLP must be notified to the Registrar of Companies. The Resignation of partner is governed by LLP Agreement however Partner can resign from a LLP by providing notice of resignation in writing not less than 30 days to the LLP and other Partners of the LLP. In cases like death, insolvency or incompetency of a Partner or dissolution of the LLP, the Partner would automatically cease to be a Partner. A Partner in a LLP can also be removed by a majority of the other Partners in the LLP, if the LLP agreement expressly provides such powers.

LEGALRAJ will assist you to effectuate resignation or removal of Partner of LLP. The average time taken to file for resignation or removal of Partner is about 2 working days, subject to government processing time and client document submission.

 

 

What will you receive in Resignation or Removal or Partners in LLP package ?

 

 

1.Resignation Letter of the resigning partner

2. Resolution / consent for acceptance of his/ her resignation from the LLP

3. Relieving Letter to Partner from LLP

4. Filing of LLP Form 3 & 4 for change in the partnership of the LLP

 

 

What are the Duties and Rights of a Partner in the LLP ?

 

1. General Duties:

 

Partners of a LLP are bound to carry on the business of the LLP to the common advantage, to be just and faithful to each other, and to render  true accounts and full information of all things affecting the LLP to any partner.

 

2. Rights of Partners:

 

All Partners have right to take part in the conduct of the business of the LLP and access to inspect and copy the book of accounts of the LLP.

 

3. Duty to Indemnify:

 

Every Partner of a LLP is required to indemnify the LLP for any losses caused to it by fraud in the conduct of the business of the firm.

 

4. Implied Authority:

 

The authority of a Partner to bind the LLP, in case of any transaction carried on, as in the usual way business is carried on by the LLP, binds the LLP.

 

5. Properties of LLP:

 

All property, rights and interest in assets (tangible or intangible) acquired or developed with the money of the LLP belong to the LLP.

 

 

What is the process for Resignation of Partner ?

 

 

Step 1: Preparing the Resignation Letter of the resigning partner

Step 2: Submission of the resignation letter to the partners of the LLP

Step 3: All the Partners accept the resignation by passing the resolution in their meeting

Step 4: File the LLP Form 3 & 4 for resignation and change in the LLP Agreement

 

The entire process for resignation of partner will take at least 2 to 4 working days from the receipt of all the necessary documents and filing with the ROC.

 

How LegalRaj will help with resignation of partner ?

 

 

1. Consultation: We will review your LLP Agreement to determine the course of action for resignation or removal of Partners or Designated Partner in the LLP. As per complexities involved, we will assist you with the procedure for resignation or removal of Partners or Designated Partner and matters related thereto.

 

2. Partners’ Resolutions: Then we will provide timelines, documents and do the compliances for you. ​​​​​

 

3. Filing: We will timely file applicable returns, documents and other formalities with the Ministry of Corporate Affairs to effectuate resignation or removal of Partners or Designated Partner.

Documents


Resignation letter

Resignation letter of the Resigning Partner


LLP Agreement

Revised and reinstated LLP Agreement


PAN Card

PAN card of the company/ organization.


Other Documents

Other documents will be intimated through e-mail.

FAQ

As per the provisions of the Limited Liability PartnershipAct, 2008, a Partner may resign from the LLP by giving a written notice to the LLP. This change in the Partners of the LLP is required to be intimated to the jurisdictional ROC by filing of the LLP Eform No. 3 and 4 within 30 Days’ of the date of resignation.

Yes, the other partners of the LLP may, by passing resolution in Partners’ meeting,and subject to the applicable provisions as contained in the LLP Agreement and the LLP Act, 2008, with the unanimous consent of all the remaining Partners,remove a Partner, but after giving a reasonable opportunity of being heard.

Following is the process for removal of Partner; Intimation of removal of the Partner will be given to the LLP; The LLP will deliver the Notice of removal to the Partner proposed to be removed; Partners Meeting of will be held and Resolution will be passed by the members for removal of Partner; LLP Eform No. 4 will be filled by the Company within clear 30 Days. The MCA will update its records and the Partner will be removed from the LLP.

Resignation or removal of Partner usually takes 1-2working days subject to the approval of the Central Govt. and the receipt of documents from the clients.

Click on Get Quotation tab above and fill the details, you will receive required documents list and quotation in few seconds in your mailbox. No charges for requirement list and Quotation.

No. However, the Signatory details of the LLP on the MCA portal will be updated when there is an addition of the Partners on the Board of the LLP and the same can also be checked through this link; http://www.mca.gov.in/mcafoportal/viewSignatoryDetails.do.