Step-by-Step Process to Add a Partner in an LLP
Step 1: Obtain Consent of Existing Partners
The introduction of a new partner must be approved by all existing partners, unless the LLP agreement specifies otherwise.
Action Points:
- Conduct a partner meeting
- Record consent or pass a resolution
- Update capital contribution and profit sharing if needed
Step 2: Obtain the New Partner’s KYC & Consent
The incoming partner must provide:
- PAN & Aadhaar
- Address proof
- Email & mobile number
- Consent letter to act as a partner
- Contribution details
- Digital Signature Certificate (DSC) — if becoming a Designated Partner
Step 3: Apply for DPIN (If Becoming Designated Partner)
If the new partner will act as a Designated Partner, they must have a DPIN (Designated Partner Identification Number).
This is applied through:
- Form DIR-3 (for individuals not holding DIN/DPIN)
If the person already has a DIN/DPIN, this step is skipped.
Step 4: Draft Supplementary LLP Agreement
The agreement must be updated to reflect:
- New partner’s name
- Contribution amount
- Profit-sharing ratio
- Rights & obligations
- Roles (Partner / Designated Partner)
This supplementary agreement must be notarized and stamped.
Step 5: File Form 4 on MCA Portal
Within 30 days of partner admission, Form 4 must be filed with MCA.
Attachments required:
- Consent of new partner
- Resolution or approval letter
- Supplementary LLP Agreement
- KYC documents
- DPIN (if applicable)
Step 6: File Form 3 for Agreement Changes
After Form 4, you must file Form 3 to update the LLP Agreement.
Form 3 includes:
- Revised contribution
- Updated profit-sharing
- Updated partner details
Both Form 3 and Form 4 must be filed to complete the addition process.
Step-by-Step Process to Remove a Partner from an LLP
Step 1: Partner Resignation or Removal Notice
A partner may exit through:
- Voluntary resignation
- Automatic removal (as per LLP agreement terms)
- Mutual decision of partners
A Resignation Letter or Notice of Removal is required.
Step 2: Acceptance & Resolution by Existing Partners
Remaining partners must accept the resignation and pass a formal resolution.
Action Points:
- Conduct partner meeting
- Approve removal/resignation
- Decide revised contribution and profit-sharing ratios
Step 3: Settlement of Dues (If Any)
If applicable, settle:
- Capital contribution
- Profit share up to exit date
- Liabilities or responsibilities
A settlement confirmation may be included in the minutes.
Step 4: Execute Supplementary LLP Agreement
Update the agreement to remove the partner’s:
- Name
- Contribution
- Profit share
- Rights & responsibilities
This agreement must be notarized and stamped.
Step 5: File Form 4 for Removal
Removal of a partner must be reported in Form 4 within 30 days.
Attachments:
- Resignation letter / removal notice
- Resolution for acceptance
- Supplementary LLP Agreement
Step 6: File Form 3 for Updated LLP Agreement
Finally, file Form 3 to update the LLP Agreement after removal.
This completes the official removal process.
Documents Required (Addition & Removal)
For Adding a Partner
- PAN, Aadhaar, KYC documents
- Consent letter (Form 6)
- Resolution of partners
- Supplementary Agreement
- DPIN (if applicable)
For Removing a Partner
- Resignation letter / removal notice
- Acceptance resolution
- Settlement confirmation (if applicable)
- Supplementary Agreement
Timelines & Compliance
| Action | Timeline |
|---|---|
| Form 4 filing | Within 30 days of change |
| Form 3 filing | Within 30 days of Agreement update |
| DPIN application | Before partner addition |
Failing to file forms on time can attract penalties under MCA rules.
Benefits of Proper Partner Change Compliance
✔ Ensures legal validity of partner structure
✔ Updates public records on MCA portal
✔ Prevents penalties and notices
✔ Maintains transparency and governance
✔ Protects LLP from disputes
Conclusion
Adding or removing partners in an LLP is a structured process involving resolutions, agreement updates, MCA filings, and proper documentation.
By following the step-by-step guidelines above, LLPs can ensure complete legal compliance and smooth transitions in ownership or management.
SavingMantra can help with:
✔ Drafting resolutions & agreements
✔ Preparing Form 3 & Form 4
✔ DPIN assistance
✔ Complete partner addition/removal documentation pack
The information provided in this blog is for general informational and educational purposes only and should not be construed as legal, tax, or professional advice. While every effort has been made to ensure accuracy and compliance with the applicable provisions of the Companies Act, 2013 and related rules, laws and regulations may change over time and interpretations may vary based on specific facts and circumstances.
All services are subject to applicable laws, rules, and government approvals prevailing at the time of execution.