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The phrase 'Partner' is a widely used term that refers to any individual who invests capital in a partnership business and agrees to share earnings and losses, risks and rewards. On the other hand, a designated partner, as the name implies, is the person appointed by the other partners to be accountable for adhering to the LLP Act's provisions.
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Add Designated Partner

An Overview - Adding a designated partner in LLP

In the case of a Limited Liability Partnership (LLP), the designated partners must be at least two of the partners. These partners must be certified with a Designated Partner Identification Number, and their names must appear in the LLP partner agreement. The designated partner may be changed or omitted at any time.

The number of partners is not limited in any way. Additionally, there are no restrictions on entering or leaving an LLP. It is simple to join or quit. Additionally, ownership can be easily transferred from one person to another.

Documents required for adding a designated partner in LLP

The mandatory documents for an individual required to become a designated partners in LLPs are:-

  • DSC (Digital Signature Certificate)
  • DIN (Director Identification Number)
  • Passport (if applicant is from another nation)
  • Supplementary deed for the new partner
  • Original LLP Deed (to be submitted within 30 days of addition)
  • Form 3 & Form 4 have to be submitted

Eligibility to become a designated partner in LLP

A person must meet certain qualifications in order to enrol as a designated partner in an LLP. Consider the following major prerequisites for becoming a designated partner in an LLP:

  • The applicant must be at least eighteen years old.
  • Any individual or business entity may become a partner in an LLP.
  • The individual seeking to become a partner must possess a unique identification proof (For instance, Aadhaar Card).
  • Each limited liability partnership must have a minimum of two specified partners.
  • The individual should be of sound mind.
  • The individual should not be involved in fraud.
  • A limited liability partnership may have an unlimited number of partners.
  • At least one selected partner must be a resident of India.
  • Additionally, the other Designated Partners must submit a permission letter expressing their proof and other supporting papers.
  • The individual must not have been adjudicated bankrupt in the preceding five years.
  • A person who has not properly finalised payment settlements with any creditors in the recent five years and has not also reached an agreement with them regarding the same.

A detailed procedure for changing designated partner in LLP

The best feature of LLPs is that they allow for the addition or removal of partners at any moment. However, before adding the designated partner to the LLP, he should be well informed of his roles and responsibilities. To add a partner to an LLP, complete the steps outlined below:

  • For the purpose of adding a designated partner, DPIN and DSC numbers must be collected and processed. We will acquire a letter of approval from it.
  • The decision to add a designated partner will be made in a meeting pursuant to the partnership deed.
  • The additional partnership deed will be amended to include the new partner's name.
  • Within 30 days of being appointed, the new partner must complete Form-4. This form must be submitted with both the supplemental and original deeds.
  • Within 30 days of the appointment, form-3 should be filed and processed simultaneously with the partnership deed.
  • Once all procedures have been completed, the new designated partner's name will be added to the LLP and will be visible on the MCA (Ministry of Corporate Affairs) website.

FAQs on Adding a designated partner in LLP

A designated partner becomes personally and severally liable for compliance with the LLP Act, including the filing of documents, returns, and statements, and in the event of a contravention/ non-compliance, a designated partner may become personally and severally liable for punishments/ penalties under the LLP Act.
The phrase 'Partner' is a widely used term that refers to any individual who invests capital in a partnership business and agrees to share earnings and losses, risks and rewards. On the other hand, a designated partner, as the name implies, is the person appointed by the other partners to be accountable for adhering to the LLP Act's provisions.
A minimum of two partners will be required for formation of an LLP. There will not be any limit to the maximum number of partners.
It is the agreement among the partners of the LLPs, that outlines the terms and conditions of the partnership. Partnership specifies the sharing of profit or loss, capital, addition or removal of partners and affairs of the company.
Follow the steps mentioned above to add a partner. You can get our experts help and guidance for legal issues and compliance needs.
Yes, in India, a foreign national may be designated as a partner in an LLP. He will, however, be required to present his passport in addition to the other documents necessary by India's recognised partners. If his passport is not in English, he must get it apostilled and notarized before submitting it.

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