ADD DESIGNATED PARTNER 2022
DEFINITION
In the case of a Limited Liability Partnership (LLP), there are at least two individuals who are the designated partners 2022. Such partners must possess a designated partner identification number and their names in the LLP partner agreement. An appointed partner can be changed/removed when required. The procedure to do this is quite easy and the compliances are much simpler compared to other forms of company registrations. There is no cap on the maximum limit a LLP can have as partners. Also, there is absolutely no restriction on a partner who joins/leaves an LLP. One can easily join or leave it. The ownership can be transferred from one individual to another with relative ease.
THE DUTIES OF A DESIGNATED PARTNER IN LLP
While adding a designated partner in an LLP, the partner should be aware of his/her duties and responsibilities mentioned below in the period of being a partner.
- A Designated Partner of an LLP is authorized to attach his/her signature on the statement of account and solvency in form – 8, which is considered as a declaration.
- An LLP must file their annual returns with the Registrar within a period of 60 days from the date of closure of the said financial year. If the returns are not filed in the stipulated time period, then every designated partner is liable to pay a fine in excess of Rs.10,000.
- If required, the designated partner may file the returns of documents.
- A designated partner must always provide the official authority/inspector with the necessary documents/information/signing etc., that they need by extending his/her co-operation during an inquiry or inspection.
- When an investigation is being conducted by an inspector, the designated partner is responsible to reimburse the expenses incurred.
DOCUMENT TO DETERMINE THE ELIGIBILITY OF A DESIGNATED PARTNER
An individual has to fulfill specific requirements in case he/she wants to enrol himself/herself as a designated partner with an LLP. Mentioned below are the eligibility requirements needed to become a designated partner in a LLP:
a) The said person must be at least 18 years old.
b) Any person or body corporate is eligible to be a partner in an LLP.
c) An individual who wants to become a partner must have a unique identification number like an Aadhaar Card.
d) Every LLP has to have a minimum of two designated partners.
e) The person appointed as a designated partner should be of sound mind.
f) The person appointed as a designated partner shouldn’t be involved in fraudulent activity.
g) There is no maximum limit/cap for the number of partners in a limited liability partnership (LLP).
h) At least one of designated partners in an LLP must be an Indian citizen who resides in India. The other designated partners have to provide a consent letter stating their address proof and providing other documents which are required.
i) An individual should not have declared bankruptcy in the last 5 years.
j) An individual shouldn’t have any pending dues with creditors in the last 5 years. Also, an individual shouldn’t have made an agreement with the creditors for the same.
k) In the case where a partner has changed his/her name or address, then the partner has to inform the LLP of any modification made in his/her name or address within a period of 15 days of such change. It’s the LLP’s responsibility at all times to file such details in Form 4 with the registrar within 30 days of such a change.
PROCESS FOR ADDING DESIGNATED PARTNERS IN LLP
In an LLPs partners can be added/removed anytime. However, a designated partner should be made totally aware of his/her roles & responsibilities before him/her are added to him to the LLP. In order to add a partner in an LLP, the below mentioned steps have to followed.
1) DIN and DSC must to be obtained and submitted to add a designated partner.
2) The company will obtain a consent letter from the new designated partner giving consent to this appointment.
3) Through the aegis of the partnership deed, the decision to add a designated partner will take place in a meeting between the existing partner.
4) The new partner’s name must be added to the supplementary partnership deed.
5) Following the appointment of the designated partner, the new partner must file form-4 within 30 days. The new partner must submit this form along with both the additional and original deed.
6) After this process is complete, form-3 must be filed and processed along with the partnership deed within 30 days of the appointment of the new designated partner.
7) Once all the processes are complete, the new designated partner’s name will be added to the LLP and can be viewed on the MCA (Ministry of Corporate Affairs) website.
DOCUMENTS REQUIRED FOR A DESIGNATED PARTNER IN LLP
An individual has to submit the below mentioned documents to become a partner of an LLP:
1) DSC (Digital Signature Certificate)
DSC is the first document one needs to become a partner in an LLP. For an individual to get a Digital Signature Certificate, he/she has to submit the following documents:
- PAN card
- Aadhaar card
- Passport size photographs
- Contact details such as Email ID and phone number
- Educational qualifications
Once an individual’s DSC is generated, they can proceed to apply for a Director Identification Number (DIN).
2) DIN number
A DIN number is necessary for to become a designated partner in an LLP. To get the DIN number, one has to submit the following documents:
- Application in e-form DIR – 3 (One can visit the MCA website to access this form)
- Identity proof (Aadhaar card, PAN card, etc.)
- Address proof (Rental agreement, Ration card, etc.)
3) PASSPORT
If the applicant is from another country, then a copy of their passport is required.
4) SUPPLEMENTARY DEED FOR THE NEW PARTNER
A supplementary deed has to be submitted with the new partner’s details. A written consent by the new partner will is also needed.
5) THE ORIGINAL DEED NEEDS TO BE FURNISHED
The original LLP deed needs to be submitted within 30 days of the addition of the designated partner.
6) FORM 3 AND FORM 4 HAVE TO BE FILLED AS WELL
Forms 3 & 4 must be submitted as per the stated procedure.
7) PASSPORT IF FOREIGNER IS DESIGNATED PARTNER
A foreigner must submit a copy of his/her passport to become a designated partner in an LLP. If such details are mentioned in a language other than English, he/she will have to get this translated/apostilled and notarized before submitting the passport copy.
PROCEDURE FOR ADDING A DESIGNATED PARTNER
1) 3 Working Days: If the proposed designated partner does not possess a Designated Partner Identification Number (DPIN), then the applicant must apply for the same. If the partner already has a DPIN, the same DPIN can be used.
2) 4 Working Days: A resolution needs to be passed, where the appointment of the designated partner will be passed and approved. Then form 4 must be filed for a change in a partner and form 3 for amendment in the LLP Agreement.
Our team of experts at ACE ALLIANCE will assist you to get the DSC (Digital Signature Certificate) and Designated Partner Identification Number (DPIN). Then our team will help you in the preparation of the supplementary partnership deed for adding a designated partner.