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:
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.
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