Admission of Partner
In most LLP Agreements and as per the First Schedule to LLP Act, no person can be admitted as a partner in an LLP without the consent of all existing partners. However, the LLP Agreement can authorize one or more partners to approve the admission of a new partner without having to obtain the approval of all Partners. Hence, before starting the process for admitting a new partner, its important to read the LLP agreement carefully on the requirements for admitting a new partner. If the LLP agreement is silent on the procedure for admission of new partner, then the consent of all existing partners would be required as per the first schedule to the LLP Act.
Requirements for New Partner Admission
Any person who wishes to become a Partner in an LLP must be above the age of 18. He/she must also have a valid PAN or Passport. Before initiating the procedure for admission, the partner to be admitted must obtain digital signature (DSC) and Director Identification Number (DIN). Once DSC and DIN is obtained, then the formalities for an appointment can be initiated by the LLP.
Resignation of a Partner
In case a partner decides to vacate his/her position as a partner in accordance with the LLP agreement and the consent of other partners, then the procedure mentioned or decided by the partners can be adopted. In the absence of an agreement, a partner can resign by intimating the other partners with a notice. Such a notice must be issued 30 days prior to the date of resignation. An amount that is equivalent to the capital contribution of the former partner actually made. His/her ‘right to share’ in the accumulated profits after deduction of accumulated losses, which is determined based on the date of resignation of the former partner.