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Removal Of Designated Partner

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About Removal Of Designated Partner

A Partner can be removed by other partners from Limited Liability Partnership (LLP) anytime. If the majority of partners decides , then they can remove a partner. A partner can remove from LLP for various reasons, some of the reasons mentioned here

If A partner become Unsound Mind

If a partner becomes Insolvent

If a partner carry illegal business activity in their LLP

If a partner cannot take his duties

Other reasons


Inability of the existing Partner

The existing partner of the LLP may not be able to contribute his full time after a certain period, whether due to retirement or other reasons. Although the exit of one partner may not affect the existence LLP, it must be dealt with by intimation to MCA and also the appointment of a new partner, if required.

Number of Designated Partners is below the statutory limit

Every LLP requires maintaining minimum 2 Designated Partners all time. If due to the resignation of a designated partner from LLP, the total designated partners reduce below 2, the LLP must appoint a new designated Partner or change the position (status) of the existing another partner.

Documents Required

DSC of the continuing partner and partner to be removed.

LLP Agreement executed while registration and the modifications thereto.

Minimum Requirements

Designated Partners

Minimum 2 Designated Partners all time

Other Partners

LLP may run without other types of partner


Filing of form 4 must be for an LLP because it is mandatory filing for those who want to change of partner or their respective designation , an application shall be filed with MCA to approve the changes of a partner or the designation. This form will be presented with the help of CA or CS. You have to file your application with type 4. In this form, you have mentioned below given information

All above given information is required during filing of the form, and also you have to attach supporting documents of this information. Also, you have to mention other required details in form 4.

This form should be filed within 30 days of the effective date of change or execution of an agreement. In the case of failure of submitting this form, you may have to face legal consequences. This form will be checked by a registrar, and he will give his approval for changes if he satisfies with the form.

You can file this form online through official website of Ministry of Corporate Affairs.

Frequently Asked Questions

The rights and liability of the existing Partner will be as prescribed in the original LLP Agreement. Furthermore, the rights and restrictions can also be specifically mentioned in the Supplement Agreement with any amount of capital to be reimbursed and mode of payment.

In order to resign from the LLP, the Partner shall intimate about the intention to resign to the LLP and remaining partner. At least 30 days’ notice is required to be served by the resigning Partner for the stated purpose.

The LLP must appoint a new designated partner within 6 months from effective date. However, in case the LLP already has another partner, the status of such a partner can be changed to Designated Partner.

Yes, the LLP agreement must be modified with terms of addition or removal by execution of the supplementary deed. All the details including the change of capital and change in terms and profit sharing ratio will be provided in the deed.

The Supplementary Deed must be filed within 30 days from effective date of change or from the date of execution (whichever falls earlier). The delay in filing levies additional fee of Rs 100 per day till the date of filing.

The essential difference between both types of partners is the accountability. Where the partner is responsible only for acts and omissions by himself, the Designated Partners are additionally responsible towards compliance and operational matters of the LLP, including penal provisions.


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