Who can be admitted as a partner to LLP?
Only individuals and body corporates can be admitted as partners in an LLP
How a person can be admitted as partner to LLP?
Admission of a partner to LLP happens in accordance with LLP Agreement. Usually, LLP Agreement provides procedures for admission. As per LLP law, every new partner shall give his consent for appointment before admission.
Is admission of a partner a complicated process?
No, it is a simple process. The process varies depending on the provisions in the LLP Agreement.
What are the rights of a partner in LLP?
Generally the partner of an LLP has economic as well as management rights in LLP. Economic rights enable him to participate in profits and losses of LLP and management rights assure participation in management of LLP.
What does a partner get after admission to LLP?
A partner admitted to the LLP gets economic as well as management rights in LLP.
Is it possible to admit a foreign national as a partner in LLP?
Yes. Subject to approval from central government a foreign national can be admitted as a partner in LLP
How can a partner of LLP resign?
A partner can resign from a partnership as per the process set out in LLP Agreement.
How can a partner of LLP resign from an LLP that has only 2 partners?
An LLP should have 2 partners at any point of time. If there are only 2 partners, the continuing partner needs to admit another partner to LLP. Only thereafter can one of the existing partners resign.
How can a partner of LLP be dismissed?
A partner can be removed or dismissed from LLP as per the process set out in LLP Agreement.
Is it mandatory to give notice to existing partners for resignation from LLP?
LLP act provides that unless LLP agreement provides otherwise, a partner can resign from LLP by giving notice in writing to other partners. In all other cases, it must be as per LLP Agreement.
What will happen to the rights of a deceased partner in LLP?
The LLP Rights will be vested as per LLP Agreement. In case the LLP agreement is silent as to vesting, all economic rights will be vested with legal heirs of deceased partner.