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A Limited Liability Partnership (LLP) in India is a unique business structure that blends the benefits of both a company and a traditional partnership. One of its key advantages is that each partner’s liability is limited, meaning no partner is held accountable for the actions or negligence of another. This protection is similar to what shareholders experience in a company.

As your LLP grows, you might find the need to bring in new partners to support expansion or add new expertise. In this guide, we’ll walk you through the process of adding a new partner to your existing LLP. Additionally, we’ll provide a template for updating your LLP agreement to reflect the inclusion of a new partner.

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Adding a new partner to your LLP is a significant decision that involves a few essential steps. Typically, the consent of all current partners is required to bring in a new partner. However, if your LLP agreement allows it, a single partner may have the authority to admit a new partner without needing unanimous consent.

The prospective partner must formally express their intention to join the LLP by submitting Form 6. Once admitted, the LLP must file Form 4 within 30 days to officially register the new partner. This form should be signed by an existing Designated Partner. Additionally, a practicing Company Secretary (CS) or Chartered Accountant (CA) must provide a certificate confirming that all the details related to the partner addition, including the LLP’s records, have been accurately verified.

Furthermore, an addendum to the existing LLP agreement is required to include the new partner, ensuring that all terms are up-to-date.

This Agreement is executed in [City] on this [Date] of [Month, Year].

Between

  1. Mr. [Existing Partner A], son of [Partner’s Father Name], residing at [Partner’s Address], and
  2. Mr. [Existing Partner B], son of [Partner’s Father Name], residing at [Partner’s Address],
    (collectively referred to as "Existing Partners") of the first part;

And

  1. Mr. [New Partner A], son of [Partner’s Father Name], residing at [Partner’s Address],
    (referred to as "New Partner") of the second part;

Whereas the Existing Partners have been conducting the business of [Describe LLP Business Activity] under the name and style of [LLP Name] LLP (Registration No. [LLP Registration]) at [Registered Office] as per the LLP Agreement dated [Original LLP Agreement Date].

This Agreement witnesses the following:

  • This agreement serves as an addition to the original LLP Agreement dated [Original LLP Agreement Date] between the Existing Partners.
  • As of the date of this agreement, the New Partner shall join the Existing Partners under the terms of the original LLP Agreement, with the modifications outlined in this document.
  • The LLP's capital will now total Rs. [New LLP Total Contribution], with contributions from each partner as follows:
    • Partner A Contribution:
    • Partner B Contribution:
    • Partner C Contribution:
  • Profits and losses will be shared among the partners according to their respective contributions to the LLP.
  • Except for the changes made in this agreement, the original LLP Agreement dated [Original LLP Agreement Date] remains effective and is to be interpreted as if it includes the New Partner.

In witness whereof, the parties have set their hands and seals on the day and year first above written.

Partner A

Partner B

Partner C

Witness A

Witness B

  • For Accounts Subject to Audit: The deadline is October 31st of the assessment year.
  • When Reporting with Form No. 3CEB: The due date is November 30th of the assessment year.
  • For Non-Audited Accounts: The deadline is July 31st of the assessment year.

How to Complete the ITR 6 Form

To ensure a smooth and accurate filing process for the ITR-6 Form, follow these recommended steps provided by the Income Tax Department:

  1. Part A
  2. Schedules
  3. Part B
  4. Verification

Adhering to this sequence helps organize your information and simplifies the completion of your income tax return.

No Documents Required

When filing the ITR-6 form, you do not need to attach any documents, such as TDS certificates. However, it is important to reconcile the taxes deducted, collected, or paid on your behalf by comparing them with your Tax Credit Statement Form 26AS.

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