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.

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 to be followed while in the period of holding the partnership.

  • The Designated Partner of the LLP is authorized to attach his signature on the Statement of Account and Solvency, form – 8, which is a declaration.
  • The LLP must file annual returns with the Registrar within a specified period of 60 days from the date of closure of the financial year. If this isn’t implemented, every Designated Partner will be imposed with a fine exceeding Rs 10,000.
  • If there is any need, then the Designated Partner may file the returns of documents.
  • The Designated Partner must support the authority with the necessary documents, information, signing any requirements, etc. by extending his/her co-operation to the inspector on inquiry or inspection.
  • When an investigation conducted by an inspector takes place, then a Designated Partner is responsible to reimburse the expenses.

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.

FAQs on Adding a Designated Partner

What are the types of LLP Partners?

LLP Partners can be of various types. Some of the most common partners can be of following types –

  • Equal partners (1:1)
  • Differential Rights LLP partners
  • Husband and wife LLP
  • Differential Rights and Differential Powers LLP partners

Can a foreigner be made a designated LLP partner? If yes, then what are the additional requirements?

Yes, a foreign national can be made a designated partner in an LLP in India. He will, however, have to furnish his passport in addition to the documents required by Indian designated partners. In case his passport is in any foreign language other than English, he will have to get it apostilled and notarised and then submit it.

What are the forms that a designated partner will have to fill at the time of addition?

The designated partner will have to fill DIR Form 3 and Form 4 and submit it with the authorities to get added in the designated partners’ list of an LLP in India.

How many partners can be added to an LLP?

There is no maximum limit of the number of partners for an LLP. A partner can be added anytime and a partner can leave the LLP whenever he wants to. However, there should be a minimum of two partners in an LLP to function.