Process of Retirement under LLP

How is retirement dealt with in an LLP?

Answer (1)

Team Legistify

  • Sector-1, Noida

An LLP agreement will usually provide that a member wishing to leave gives e.g. 6 or 12 months’ notice. He or she then has the right to receive undrawn profits and the credit balance on his/her capital account. This can destabilise the LLP, but to avoid this you can have a repayment by instalments e.g. 10 years.

Answered on 28 Sep 2018

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