Facts relating to Partners – LLP

 

Partners of Limited Liability Partnership (LLP) are not liable for the individual act of other partners, which protects the interest of individual partners. We have explained hereunder all the facts relating to partner/s in the recognized form of business i.e., LLP.
No. of Partners
Minimum two partners are required for formation of an LLP. There is no limit to the maximum number of partners.
Qualifications for becoming a LLP partner
Any individual or body corporate may be a partner in a LLP. However, an individual shall not be capable of becoming a partner of a LLP, if he is of unsound mind or an undischarged insolvent or applied to be adjudicated as an insolvent and his application is pending.
Designated Partners
Appointment of at least two “Designated Partners” is mandatory for all LLP who should be individuals and at least one of them should be a resident of India.  Designated Partners are accountable for regulatory and legal compliances.
Moreover, every Designated Partner is required to have DPIN (Designated Partner’s Identification Number) or DIN (Director’s Identification Number).
Procedure to become a partner of an LLP
At the time of incorporation – All the partners have to subscribe to the “Incorporation Document”, to be partners of LLP.
Subsequent to incorporation – New partners can be admitted in the LLP as per conditions and requirements of LLP Agreement.
How existing partner cease to be a LLP partner
An existing partner may cease to be a partner in accordance with the LLP agreement or in the absence of agreement, by giving 30 days notice to the other partners.
When existing partner can cease to be partner
A person can cease to be a partner of a limited liability partnership-

• on his death or dissolution of the limited liability partnership; or
• if he is declared to be of unsound mind by a competent court; or
• if he has applied to be adjudged as an insolvent or declared as an insolvent.

Notice is required to be given to ROC when a person becomes or ceases to be partner or for any change in partners.
Obligation of a partner in case of changes in his name or address
Every partner should inform the LLP of any change in his name or address within a period of 15 days of such change. The LLP, in turn, would be under obligation to file such details with the Registrar within 30 days of such change in Form 4.