What is partner change in LLP?
Partner change means to appoint new partner or designated partner in the LLP and to resign the existing partner from the LLP.
Why we need to change Partners?
The change in designation of Partners can also be necessary during furtherance of Business. New partner can also be introduced, to contribute new capital in the LLP or to take the benefits of the professional services from the partners. Sometimes partner bring their goodwill that will increase the business of the LLP.
How to change in Partners and Designated Partner in LLP..?
As per Section 22 of LLP Act, 2008 on the incorporation of a LLP, the persons who subscribed their names to the incorporation document shall become its partners. A person can be admitted as partner in LLP as per the provisions of LLP agreement of the LLP and section 22 of LLP Act, 2008. If agreement is silent then partner shall be appointed as per Schedule I and need consent of all the Partners.
Who can become a the Partner in LLP?
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 has been found to be of unsound mind by a Court of competent jurisdiction and the
finding is in force.
He is an undischarged insolvent; or
He has applied to be adjudicated as an insolvent and his application is pending.