The Central Government will provide a Designated Partner Identification Number (DPIN) to the a designated partner of a (LLP) now read more

A designated partner is a partner who has been designated by other partners to be accountable for all compliance requirements outlined by the LLP Act, 2008 and LLP Rules, 2009.

Rights of Designated Partner 

The designated partner has the same rights as the other partners. They are not empowered to draw any compensation for their engagement and involvement in the management of the LLP, unless otherwise specifically provided in the LLP Agreement, but they have additional responsibilities to meet and will be liable for all penalties under the LLP Act if the provisions of the LLP Act are violated.

If a designated partner’s name or address has changed, the partner must notify the LLP within 15 days of making the change. It is the responsibility of the LLP firm to notify the Registrar of such changes in the Form 4 within 30 days.

What Is a Designated Partner Identification Number ?

The Ministry of Corporate Affairs (Government of India) issues a Designated Partner Identification Number (DPIN) to anyone who seeks to be designated as a Designated Partner of a Limited Liability Partnership (LLP). To put it another way, each Designated Partner in an LLP is allocated a role.

The number allotted to d esignated partners or the Designated Partner’s DPIN serves as proof of their legal validity. The Designated Partner Identification Number(DPIN) is often interchangeably used with the Director Identification Number (DIN).

To become a Designated Partner, you must first obtain the consent of other existing partners and obtain a Class 2 digital signature.

Every individual who wishes to be appointed as a designated partner of an existing Limited Liability Partnership must apply for a DPIN (Designated Partner Identification Number) in Form DIR-3, as per Rule 10(1)(a) of the Limited Liability Partnership Rules, 2009.  Name, address, father’s name of the applicant, occupation of the applicant, educational qualification of the applicant PAN and voter’s ID card number are all mandatory fields on the form apart from passport and driver’s licence number and Aadhaar

If you wish to onboard designated partners for your LLP and to avoid getting your DPIN application rejected, get in touch with the veteran experts at Vakilsearch. Our professionals will handle everything from LLP incorporation, DPIN and digital signature procurement to post-appointment compliances such as filing of designated partner particulars with the Registrar.

Prescribed Limit for Designated Partner & Designated Partner Identification Number 

• An application for name reservation using the RUN Service or RUN-LLP Service on MCA does not require a DPIN / DIN / DSC
• Form FiLLiP can be used by a maximum of two approved partners to apply for DPIN allotment. The number of individual or business partners, on the other hand, is unrestricted
• Under Form SPICe, a maximum of seven subscribers can apply for a DIN.

Need for Designated Partner & Designated Partner Identification Number

The LLP must file its particulars with the registrar within 30 days of individuals consenting to operate as Designated Partners, according to Section 7(4). A Designated Partner Identification Number (DPIN) must be obtained from the central government, according to Section 7(6), and Section 266A-G of the Companies Act, 1956, including the regulations of Mutatis Mutandis, will apply to Designated Partners. If the Designated partners violate the provisions of Sections 7, 8, or 9, the LLP and each partner are responsible to pay a fine of not less than ten thousand rupees and up to ₹5 lakh, according to Section 107.

Explanation –  If an LLP violates section 7 (1) of the LLP Act, which requires the nomination of at least two designated partners, the LLP and each of its partners are subject to a fine of not less than ₹ ten thousand but not more than ₹5 lakh.  In addition, violations of the LLP Act’s sections 7(4) [filing of designated partner particulars with Registrar], Section 7(5) [non-fulfilment of conditions and requirements for eligibility to be a designated partner], Section 8 [Liabilities of designated partners] and Section 9 [Changes in designated partners] will result in a fine of not less than ₹10,000 but not more than ₹1 lakh to the LLP and partners.

Appointing a designated partner and Obtaining their Designated Partner Identification Number (DPIN)  is a time-consuming process that requires the assistance of legal professionals. To prevent the difficulty of doing this yourself while running a business, the best alternative for you is to entrust this critical update to your LLP to the Vakilsearch team. To get your LLP the mandated DPIN in the most affordable and hassle-free manner possible feel free to contact us right away!

Procedure to obtain a DPIN

1. Designated Partner Identification Number (DPIN) is a unique identification number assigned to designated partners of a limited liability partnership (LLP).
2. To obtain a DPIN, designated partners must submit an online application on the official website of the Ministry of Corporate Affairs.
3. The application for DPIN requires personal details, educational qualifications, and professional experience of the designated partner.
4. After submitting the application, designated partners must complete the e-KYC verification process, which involves submitting scanned copies of relevant documents.
5. Once the e-KYC verification process is complete, the DPIN is generated and communicated to the designated partner via email.

Verification of DPIN application

1. The verification of Designated Partner Identification Number (DPIN) application is a crucial step in the process of obtaining a DPIN.
2. The Ministry of Corporate Affairs verifies the DPIN application by conducting an e-KYC (Know Your Customer) verification of the designated partner.
3. During the e-KYC process, the designated partner must submit scanned copies of relevant documents such as PAN card, Aadhaar card, and address proof.
4. The e-KYC process ensures that the details provided by the designated partner are accurate and up to date.
5. After successful verification of the DPIN application, the DPIN is generated and communicated to the designated partner via email.

In conclusion

The Designated Partner Identification Number (DPIN) is a crucial requirement for all designated partners of a limited liability partnership (LLP) in India. It serves as a unique identifier for designated partners and helps in maintaining transparency and accountability in the operations of an LLP. Obtaining a DPIN is a straightforward process, and designated partners can apply for it online through the official website of the Ministry of Corporate Affairs. It is important to note that DPIN holders must keep their personal and professional information up to date and adhere to all the regulations and compliance requirements of the LLP Act. By obtaining a DPIN and fulfilling all the necessary obligations, designated partners can contribute to the success and growth of their LLP.

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Also, Read:

• Procedure for Closing LLP
• Existing Partner Of An LLP Be A Partner In India
• Partners Are Required To Form An LLP In India