Adding a Designated Partner to LLP
Hugely popular in India also, the Limited Liability Partnership (LLP) firms in India are formed, governed, and regulated by the LLP Act of 2008 and the LLP Rules of 2009. The Ministry of Corporate Affairs (MCA) of the Government of India, and its web-portal (www.llp.gov.in) is directly related for setting up LLPs in entire country by Indian or foreign people or entities.Naturally, the task of adding a designated partner to llp, is also guided and regulated by these statutes, which is exclusively described on this webpage, to help the interested LLPs located all across India.
The procedure for appointment of a new designated partner to LLP is exclusively explained in the lower section. Here now, some relevant pieces of information related with the partners of any LLP, and how to add a designated partner to LLP are being stipulated. For formation and incorporation of an LLP anywhere in India, there are essentially required at least two designated partners to it, one of whom must be an Indian citizen or a resident of India. Again, an Indian LLP can have an unlimited number of (designated) partners. The designated partners should have their respective DPIN and DSC, and their names must be present in the executive LLP Agreement. To add a designated partnerto LLP, required will be a provision/clause for doing this in the concerned LLP Agreement, as well as the unanimous consent of all partners of the LLP to such an addition.
How to Add a Designated Partner to LLP - Procedure for Appointment of any Designated Partner to LLP
For adding a new designated partner to an LLP located anywhere in India, followed is the procedure described below:
- (A) Eligibilities for the proposed Designated Partner - Documents Required
The prime eligibility criterion for becoming a designated partner to any LLP, is holding a valid DIN (Director Identification Number) or DPIN (Designated Partner Identification Number). The documents required for obtaining DSC and DPIN/DIN cover the following:
- Self-attested copy of the PAN Card of the applicant
- Self-attested copy of Aadhar Card / Driving License/ Passport of the applicant
- One Passport-Sized recent Photograph of the applicant
- Email ID and Phone/Mobile Number of the applicant
- And, other documents which may be demanded
- (B) In-House Procedure for the purpose
- After getting DPIN/DIN by the proposed designated partner, the concerned LLP is required to call a Meeting of the existing partners of the LLP, and pass a Resolution in support of adding a new designated partner to their LLP. Then prepared are draft of the resolution passed in the meeting, and Minutes of the meeting.
- Then, drafted is a Supplementary LLP Agreement, including name of the new designated partner.
- Lastly, a proper consent of the new designated partner will be taken in writing in the prescribed form.
- (C) Giving Intimation to the Registrar
- After appointment of the new designated partner, a proper intimation about it must be given by the LLP to the concerned Registrar in Form-4, within Thirty days of the appointment.
- Again, the LLP is also needed to send the Form-3 to the Registrar for making amendment in its original LLP Agreement, within Thirty days of making new appointment, along with the Supplementary LLP Agreement containing the name of the newly appointed designated partner.
It must be noted that the late filing of above forms and intimation attracts a penalty of Rs. 100/- per day.