Grounds for Removal

• A partner may be removed voluntarily (resignation) or involuntarily (expulsion)
  
• Resignation must be given in writing to the LLP as per the terms of the LLP Agreement
  
• Expulsion is allowed only if it is specifically permitted in the LLP Agreement
  
• Removal can also occur due to death, insolvency, mental incapacity, or legal disqualification
  
• The LLP must follow the contractual and legal process as per the LLP Act, 2008
  

Amendment of LLP Agreement

• The LLP Agreement must be amended to reflect the partner’s removal
  
• Terms of capital withdrawal, profit settlement, and liabilities must be recorded
  
• All partners, including the outgoing partner (if applicable), should sign the revised agreement
  
• The effective date of removal should be mentioned
  
• Any redistribution of contributions or changes in rights must be documented
  

Filing withthe  Registrar of Companies (RoC)

• File Form 4 with the MCA within 30 days of the removal of the partner
  
• The form should include details of the outgoing partner and reasons for cessation
  
• Attach supporting documents such as the resignation letter or removal resolution
  
• If the partner being removed was a designated partner, a new one must be appointed to meet the minimum requirement
  
• Also, file Form 3 if there is any change to the LLP Agreement
  

Registrar Approval and Update

• Once filed, the Registrar reviews and updates the official records of the LLP
  
• The MCA portal reflects the updated partner list upon successful processing
  
• No specific certificate is issued, but the status can be verified on the MCA website
  
• All filings must be digitally signed using the DSC of a designated partner
  
• Ensure that there are no pending filings or compliance issues linked to the outgoing partner
  

Post-Removal Compliance

• Notify stakeholders, banks, vendors, and regulatory bodies of the change
  
• Settle the capital contribution and profit share of the outgoing partner
  
• Update internal records, financial statements, and business documents
  
• Ensure that the partner’s name is removed from LLP communications
  
• Maintain a signed copy of the updated LLP Agreement and filings for records