LLP Reconstitution

LLP Reconstitution

LLP Reconstitution refers to any change in the composition of designated partners of an LLP — adding a new designated partner, removing an existing one, or changing profit-sharing ratios and responsibilities. All such changes must be reflected in the LLP Agreement and filed with the MCA.

Types of LLP Reconstitution

• Addition of Designated Partner — Bringing in a new partner with a defined capital and profit share.
• Removal/Retirement of Designated Partner — Retiring or removing an existing partner and settling their dues.
• Change in Profit-Sharing Ratio — Revising the profit and loss sharing arrangement among partners.
• Change in Contribution — Altering the capital contribution of existing partners.

Process

1. Prepare and execute a Supplementary LLP Agreement reflecting the changes.
2. Obtain DPIN for the incoming designated partner (if new partner is being added).
3. File Form 4 on the MCA portal for addition or cessation of a designated partner within 30 days of change.
4. File Form 3 on the MCA portal for amendment of LLP Agreement within 30 days.
5. Update all LLP records, bank account mandates, and GST registrations.

Documents Required

• Supplementary LLP Agreement with all revised terms.
• Consent of incoming designated partner (Form 9).
• Resignation letter or notice of cessation from outgoing partner (if applicable).
• Existing LLP Agreement and Certificate of Incorporation.
• PAN Card and address proof of new designated partner (if applicable).
• DSC of all designated partners.

Timeline

Approximately 10–15 working days.

Why Choose Tax Precision?

• Expert Supplementary LLP Agreement drafting reflecting all changes.
• Form 3 and Form 4 filing management within the 30-day deadline.
• DPIN application for new designated partners.
• Bank account and GST authorized signatory update support.
• Settlement advisory for outgoing partners.