Add a Designated Partner

ADD DESIGNATED PARTNER

In a Limited Liability Partnership (LLP), there must be at least two individuals who are partners must act as Designated Partners. These partners must have a Designated Partner Identification Number (DPIN) and, their names must appear in the LLP partner agreement. Partners who are appointed as Designated Partners may be removed or some other individuals may be appointed as Designated Partner.

There is no ceiling on the maximum number of partners. There is also no limitation on joining and leaving an LLP. One can easily join or leave it. The ownership can also be passed on from one person to the other without much problem.

Important Provisions

Every Limited Liability partnership must have at least 2 Designated Partners who are individuals and, at least one of them must be resident in India.

Any partner may become Designated Partner by and in accordance with the Limited Liability Partnership Agreement.

An individual may become a Designated Partner in any Limited Liability Partnership if he/she has Designated Partner Identification Number (DPIN) and, he/she has given his / her consent to move as a Designated Partner to the Limited Liability Partnership.

Eligibility

An individual who desires to be a Designated Partner must satisfy following conditions:

The age of the individual must be at least 18 years.

Any individual or body corporate can be entitled to be a partner in an LLP.

Every LLP must fulfill the condition to have at least two designated partners.

The person should be in a sound mind.

The person shouldn’t be involved in fraudulence.

There is no ceiling on the maximum number of partners in a limited liability partnership.

One designated partner at the minimum must be an Indian national who resides in India.

The other Designated Partners are required to provide a consent letter disclosing their proof and other documents.

The individual should not have adjudged bankruptcy in the last five years.

One who has not properly closed the payment settlements with any creditors in the last five years and also haven’t made an agreement regarding the same with them.

Procedure of ADD DESIGNATED PARTNER

The method of admission of Designated Partner is different from method of appointment of Director in Private Limited Company.

Following procedure must be observed:

DSC and DPIN

An application for DSC and DPIN (DIN) should be made and DPIN (DIN) must be obtained

Meeting of Partners

Notice of Meeting of Partners must be given

Proper Resolution

Meeting of partners must be conducted and proper resolution must be passed in such meeting.

Designated Partner

Obtain consent letter from proposed Designated Partner

Limited Liability Partnership

In case of Limited Liability Partnership a Designated Partner is appointed through execution of Agreement. So supplemental Limited Liability Partnership Agreement must be executed.

Appointment Letter

Give appointment letter to the Designated Partner

ROC

File required form with ROC

Documents Required For ADD DESIGNATED PARTNER


Resolution for admission


Consent Letter


Supplemental Limited Liability Partnership Agreement


Letter of Appointment


Statement of Accounts

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