LLP business is gaining popularity and you may come across a situation, where you need a designated partner for your LLP business.
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.
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.
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:
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.
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:
Documentation plays a very important role in adding a designated partner in an LLP. An individual has to submit the following documents for becoming a member of an LLP:
DSC is the first requirement for becoming a partner in an LLP. To get the Digital Signature Certificate, you should submit the following documents:
Once your DSC is generated, you can proceed to apply for DIN (Director Identification Number).
DIN is necessary for becoming a designated partner. To get the DIN number, you should submit the following documents:
If the applicant is from another nation, then a copy of the passport is required.
A supplementary deed has to be provided with the new partner’s details. Written consent by the new partner will also be required.
The original LLP deed would also be required to be submitted within 30 days of the addition of the designated partner.
Form 3 and Form 4 have to be submitted as per the stated procedure
The foreigner has to submit a copy of his passport as well to become the designated partner. If the details are mentioned in any language other than English, he will have to get it translated, apostilled and notarized before submitting the passport copy.
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.
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.
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 –
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.
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