Adding a Designated Partner
In the case of a Limited Liability Partnership (LLP), at least two individuals who are partners shall act as designated partners. These partners must have a Designated Partner Identification Number and their names must feature in the LLP partner agreement. The appointed partner can be changed or removed. These are easy to apply and the compliances are lesser when compared to other types of company registrations.
There is no maximum limit on a number of partners. There is also no restriction on joining and leaving an LLP. One can easily join or leave it. The ownership can also be transferred from one person to another without much difficulty.
Checklist for Eligibility of a Designated Partner
A person has to fulfill the specific requirements in case he wants to enrol himself as a designated partner with an LLP. Let us have a look at some of the primary requirements to be eligible to become a designated partner in an LLP:
- The individual must be at least 18 years old.
- Any individual or body corporate can be eligible to be a partner in an LLP.
- The individual who wishes to become a partner must have a unique identification number (For instance, Aadhaar Card)
- Every LLP must have a minimum of two designated partners.
- The person should be in a sound mind.
- The person shouldn’t be involved in fraudulence.
- There is no maximum limit for the number of partners in a limited liability partnership.
- At least one designated partner must be an Indian national who resides in India.
- The other Designated Partners must also provide a consent letter stating their proof and other documents.
- The individual should not have adjudged bankruptcy in the last 5 years.
- One who has not properly closed the payment settlements with any creditors in the last 5 years and also haven’t made an agreement regarding the same with them.
In case if the partner has changed his/her name or address, then the partner shall inform the LLP of any modification made in his/her name or address within a period of 15 days of such revision. It’s the LLP firm’s responsibility to file such details with the Registrar within 30 days of such a change in the Form 4.
Procedure for Adding Designated Partners in LLP
The best thing about LLPs is that partners can be added or removed anytime. However, the designated partner should be made fully aware of his roles and responsibilities before adding him to the LLP. In order to add a partner in an LLP, you have to follow the steps mentioned below:
- DIN and DSC have to be obtained and processed for adding a designated partner. We will obtain its consent letter.
- Through the partnership deed, the decision to add a designated partner will take place in a meeting.
- The new partner’s name will be added to the supplementary partnership deed.
- We help you draft the partnership deed.
- Following the appointment, within 30 days, the new partner must file form-4. You must submit this form along with both the additional and original deed.
- After this process, form-3 should be filed and processed along with the partnership deed within 30 days of the appointment.
- Once all the procedures are done, the new designated partner’s name will be added to the LLP and viewed in the MCA (Ministry of Corporate Affairs) website.
Procedure for Adding a Designated Partner
3 Working Days
If the proposed designated partner does not have the Designated Partner Identification Number (DPIN), then the applicant should apply for one. If the partner already has a DPIN, the same can be used.
4 Working Days
A resolution needs to be passed, approving the appointment of the designated partner will be done, form 4 needs to be filed for a change in a partner and form 3 for amendment in the LLP Agreement.
Documents required for Designated Partner
In India, Designated Partner cannot be done without proper identity and address proof. These documents will be needed for all the directors and the shareholders of the company to be incorporated. Listed below are the documents that are accepted by MCA for the online company registration process acceptable.
Identity And Address Proof
- Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
- Scanned copy of Voter’s ID/Passport/Driver’s License
- Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill
- Scanned passport-sized photograph specimen signature (blank document with signature [directors only])
For the foreign nationals, an apostilled or notarized copy of the passport has to be submitted mandatorily. All documents submitted should be valid. The residence proof documents like the bank statement or the electricity bill must be less than 2 months old.
Registered Office Proof
For online company registration in India, the company must have a registered office in India. To prove admittance to the registered office, a recent copy of an electricity bill or the property tax receipt or water bill must be submitted. Along with the rental agreement, utility bill or the sale deed and a letter from the landlord with her/his consent to use the office as a registered office of the company should be submitted.
- Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill
- Scanned copy of Notarized rental agreement in English
- Scanned copy of No-objection certificate from the property owner
- Scanned copy of sale deed/property deed in English (in case of owned property)
Note: Your registered office need not be a commercial space; it can be your residence too.
