Add Designated Partner

Online Process to Add Designated Partner

In a Limited Liability Partnership (LLP), a minimum of two individuals act as designated partners. Their names must be mentioned in the LLP Agreement, and these partners must have a Designated Partner Identification Number. Compared to other business structures, adding or removing partners in LLP in India is easy as there are fewer compliances to adhere to.

There is no maximum threshold limit on the number of partners. A partner can freely join or leave an LLP with the correct procedure. An LLP’s ownership can be transferred to another person if the company is sold.

Duties of a Designated Partner in LLP

An LLP-designated partner should be aware of the duties and responsibilities to be followed during the period in which the partnership is held.

• Form – 8, a declaration, must be signed by the Designated Partner of the LLP.
• The LLP must file its annual returns with the Registrar within 60 days of the end of the financial year. A fine exceeding Rs 10,000 will be imposed on every Designated Partner if this does not happen.
• Document returns can be filed by the Designated Partner if necessary.
• Designated Partners must support the authority by providing necessary documents, information, signing any requirements, etc., by cooperating with the inspector during an inspection or inquiry.
• An inspector’s investigation expenses must be reimbursed by a Designated Partner when it takes place.

Eligibility of Designated partners in LLP

If a person fulfills the following requirements, then they are eligible to be a designated partner in LLP:

• The minimum age of the individual must be 18 years.
• Both individuals or body corporates can be eligible for the role of a partner in an LLP.
•  A unique identification number is required for the proposed designated partner.
• A minimum of two designated partners is necessary in an LLP.
• The mental state of the proposed partner should be appropriate.
• There should not be fraud in the applicant’s actions.
• Limited Liability Partnership has no maximum number of partners.
• One of the designated partners must be a resident of India.
• The remaining designated partners should provide consent along with proof and other documents.
• The individual should not have a history of bankruptcy in the last 5 years.

If the partner has changed their name or shifted to a new address, then the partner shall inform the LLP within 15 days from the date of any modification made in their name or address. It’s mandatory for the LLP to file such details with the Registrar within a period of 30 days about the change in Form 4.

Process of Appointment of Designated Partner in LLP

An LLP can anytime decide to remove or add a new partner, and the only condition is that the partner must fulfill the requirements and be well aware of their duties. Follow the steps mentioned below to add a partner to your LLP:

• Obtaining a DIN and DSC is a requirement for the designated partner.
• A meeting must be organized to make the decision of adding a partner and changes to the agreement.
• The supplementary partnership deed must contain the new partner’s name.
• Within 30 days from the date of appointment, the new partner must file form-4. This form must be submitted along with both the additional and original deed.
• Within 30 days of the appointment, form 3 must also be filled and submitted with the partnership deed.
• Upon completion of the procedure, the new designated partner’s name will be added to the LLP and updated on the Ministry of Corporate Affairs website.

Procedure for Adding a Designated Partner

3 Working Days

The proposed designated partner requires a Designated Partner Identification Number (DPIN). If they do not have the DPIN, then they should apply for a new one. If they already have a DPIN, they can use the same.

4 Working Days

For the approval of the appointment of a new designated partner, a resolution must be passed; for a change in a partner, form 4 must be filed and to give the amendment in the LLP Agreement, form 3 must be filed.

Frequently Asked Questions