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Know Your Compliance for Adding a Designated Partner in LLP

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Basic Facts on Add Designated Partner in LLP

  • LLPs must have at least two designated partners.
  • The LLP partner agreement must include these partners' names and Designated Partner Identification Numbers.
  • The partner can be replaced.
  • Compared to other company registrations, these are simple and require less compliance.
  • Partners are unlimited.
  • LLP membership and termination are unrestricted.
  • There is also no restriction on joining and leaving an LLP.
  • Transferring ownership is also simple.

Duties Of A Designated Partner In LLP

  • An LLP's designated partner should know their responsibilities.
  • The Designated Partner of the LLP can sign the Declaration of Account and Solvency, form 8.
  • The LLP must file annual returns with the Registrar 60 days after the financial year ends. If not, every Designated Partner will be fined over ₹10,000.
  • The Designated Partner must provide the authority with documents and information, sign requirements, and cooperate with the inspector on inquiry or inspection.
  • Designated Partners pay for inspector investigations.

Checklist For Eligibility Of A Designated Partner

A person has to fulfil the specific requirements if they want to enrol 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:

  1. The individual must be at least 18 years old.
  2. Any individual or corporate body can be eligible to partner in an LLP.
  3. The individual who wishes to become a partner must have a unique identification number (For instance, Aadhaar Card)
  4. Every LLP must have a minimum of two designated partners.
  5. The person should be in a sound mind.
  6. The person shouldn’t be involved in fraudulence.
  7. There is no maximum limit for the number of partners in a limited liability partnership.
  8. At least one designated partner must be an Indian national who resides in India.
  9. The other Designated Partners must also provide a consent letter stating their proof and other documents.
  10. The individual should not have been adjudged bankrupt in the last 5 years.
  11. One who has not closed the payment settlements with any creditors correctly in the last 5 years and also hasn’t made an agreement regarding the same with them.
  12. If the partner has changed their name or address, then the partner shall inform the LLP of any modification made in their name or address within 15 days of such revision. The LLP firm’s responsible for filing such details with the Registrar within 30 days of such a change in Form 4.

Procedure For Adding Designated Partners In LLP

LLPs’ flexibility is their best feature. Before joining the LLP, the designated partner should be informed of his duties. Follow these steps to add a partner to an LLP:

  1. DIN and DSC have to be obtained and processed for adding a designated partner. We will obtain its consent letter.
  2. Through the partnership deed, the decision to add a designated partner will occur in a meeting.
  3. The new partner’s name will be added to the supplementary partnership deed.
  4. We help you draft the partnership deed.
  5. After this process, form-3 should be filed and processed along with the partnership deed within 30 days of the appointment.
  6. Along with Form 3, form 4 is filed simultaneously to record the changes in designated partners of LLP.
  7. Once all the procedures are done, the new designated partner’s name will be added to the LLP and viewed on the MCA (Ministry of Corporate Affairs) website.

Procedure For Adding A Designated Partner

3 Working Days

The applicant should apply for one if the designated partner still needs the Designated Partner Identification Number (DPIN). 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.

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