The Government of India has recently amended the provisions of the Limited Liability Partnership (LLP) Rules. The newly amended rules state that a Designated Partner must necessarily obtain the Designated Partner Identification Number (DPIN). This DPIN is required by the Designated Partner before his/her appointment.
What is DPIN?
The Ministry of Corporate Affairs (MCA) is responsible for allotting the DPIN to any applicant. This DPIN is a registration number that has to be obtained by any person who wants to be a Designated Partner. The legal validity of the Designated Partner can also be verified using Designated partner identification number as evidence. Obtaining DPIN is a statutory requirement under the Limited Liability Partnership Act 2008, as Section 7(6) makes it mandatory for any person wanting to be a Designated Partner to obtain a Designated partner identification number number from MCA. Here articles tells about Designated Partner Must Obtain DPIN from Central Government
The individual wishing to be a Designated Partner has to make an application to obtain DPIN electronically, as stated under Rule 10(1)(a) of the Limited Liability Rules 2009. This electronic form that has to be filled out to obtain the Designated partner identification number is Form DIR-3, which is available under the Companies (Appointment and Qualification of Directors) Rule 2014.
The requirements for becoming a Designated Partner are filling out Form DIR-3 and getting the consent of other partners. Additionally, the Designated Partner applicant must also acquire a Class 2 digital signature.
Procedure for Obtaining DPIN
The step in the process of obtaining DPIN is to download the DIR-3 Form from the MCA website . This form has to be filled out and uploaded on the MCA website. The form has to be uploaded with the following documents:
Supporting documents – documents that contain identity proof and things like the photograph, date of birth, and address proof. Foreign nationals have to submit their passports as identity proof
- Digital Signature – The form has to be uploaded electronically which means that it requires the digital signature of the applicant. This digital signature has to be verified by the directors of the company where the applicant is applying to be a Designated Partner.
- Fee Payment – After the applicant fills and uploads the DIR-3 Form with the abovementioned documents, the applicant needs to make an electronic payment on the MCA website. On the MCA website, click on ‘eForm upload’ to upload the DIR-3 Form and make the payment (https://www.mca.gov.in/mcafoportal/showEformUpload.do).
The DPIN number will be allotted to the applicant after the DIR-3 Form is filled and uploaded.
It is important to know that a Designated partner identification number number is similar to Director Identification Number (DIN). A DIN number is mandatory when a new company is registered under the Companies Act 2013. A Designated Partner applicant does not need to get a Designated partner identification number if he/she already possesses a DIN number. An applicant can use the DIR-3 Form for an application for the allotment of DIN. This is covered under Rule 9(1) of Appointment and Qualification of Directors Rules 2014 read with Section 153 of the Companies Act.
If you require any help with your Designated partner identification number application, VakilSearch houses experts which can streamline the process for you. Our experts will take care of the entire application, including the DIR-3 form to the digital signature required.
Who is eligible for a DPIN?
A Designated partner identification number is allotted to every Designated Partner and every person is eligible to become a Designated Partner. Under Indian law, every LLP is required to have 2 Designated Partners, out of which one has to be a resident of India. An Indian Resident can be a person who has stayed in India for more than 182 days in the last year, according to Section 7 of the Limited Liability Partnership Act 2008.
A supplement to Rule 7 is contained in Rule 9(1) of the Limited Liability Act Rules 2009 which states down persons who are ineligible to become a Designated Partner, are:
- People below 18 years of age
- An undischarged insolvent
- Deemed to be an insolvent by a court in the preceding 5 years
- A person has suspended payment to his/her creditor in the preceding 5 years
- A person guilty of an offence involving moral turpitude for which the minimum sentence is 6 years
- A person convicted by a court for an offence under Section 30 of the LLP Act i.e., liability in case of fraud.
The procedure of Appointment of Designated Partner
There are other forms that a Designated Partner applicant must keep in mind. These forms have to be filled and submitted alongside form DIR-3. These forms are:
- Form 4 – includes the information of the people who consented to the appointment of the Designated Partner applicant
- Form 5 – includes the details of the applicant. Must be submitted within the 30 days of the Designated Partner’s appointment
- Form 9 – includes a record of the applicant consenting to the application
This form contains a record of the consent made by the designated partner applicant for the application
- Form 10 – This form contains the details of the changes made by the designated partners.
The process of becoming a designated partner and obtaining the Designated partner identification number number is time-consuming and strenuous. Vakilsearch houses Legal experts who can help you become a designated partner and DPIN number without any hassle and in an affordable way.
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