Procedure for appointment of Designated partners in an LLP

Last Updated at: Sep 30, 2020
Procedure for appointment of Designated partners of LLP
The government plans to decriminalise various provisions of the LLP Act as part of efforts to provide greater ease of doing business. These will include norms regarding eligibility and appointment of designated partners, registration of changes in partners, maintenance of books of account and filing of annual return, among others. The MCA  said this in a communication recently. 


Once the DIN is allotted to the designated partner, all the existing partners of the LLP will call a meeting and pass a resolution to add a designated partner in the partnership deed. A supplementary partnership deed will be drafted in which the new partner’s name will be added.


LLPs are slowly picking up momentum with respect to the Indian market due to the large number of benefits they provide. While LLPs provide partners with limited liability, we must know how to add and remove partners to form such a partnership. In this article, we take a look at the partners of an LLP. Read further to know more about the eligibility criteria required to become a designated partner and also the rules and procedures concerning the addition of designated partners.

Advantages of LLP

  • There are limited personal liabilities for each of the partners.
  • The company’s directors make all the decisions.
  • No restriction on joining, leaving and transferring an LLP.

Eligibility Criteria for Designated Partners

    1. Only individuals can become designated partners. Other firms, partnerships, companies and organisations cannot register themselves as a partner to a limited liability partnership.
    2. The individual who wishes to become a partner must have a unique identification number.
    3. Every LLP must have at least two designated partners.
    4. There is no maximum limit for the number of partners in a limited liability partnership.
    5. At least one designated partner must be an Indian national who resides in India.
    6. The other Designated Partners must also provide a consent letter.
    7. The individual must be over 18 years old.

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Who cannot be a Designated Partner?

  • Anyone adjudged bankrupt in the last five years
  • Who has defaulted payments to Creditors in the previous five years and not made an agreement regarding the same with them
  • Anyone who has served a sentence longer than six months
  • Persons involved in any fraudulence
  • Minors

Adding Designated Partners in LLP

  1. The individual who wishes to become a designated partner must have a valid director identification number.
  2. You can obtain this DIN or Director Identification number via submitting e-form DIR-3.
  3. Go to the MCA website to access this form and submit it.
  4. Once the filing process with the necessary information is over, upload the other necessary documents.
  5. Also, upload and register your DSC to authenticate the form.
  6. The following documents are required to obtain a DIN:
  7. Pan card
  8. Aadhar card
  9. Passport size photograph
  10. Contact details such as Email ID and phone number
  11. Educational qualifications
  12. Details about contribution towards the capital of LLP
  13. Once the DIN is allotted, the individual must infer this number to the LLP in which he or she is seeking partnership.
  14. You should draft a partnership deed with the new partner’s name.
  15. 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.
  16. Once all of this is done, the new designated partner’s name will be added to the LLP and may be viewed via the MCA website.