Starting a new limited liability partnership is challenging, but so is appointing a designated partner in an existing LLP.
DIN/DPIN are very important documents that a designated partner should have if he is being a part of the LLP. Availing of these documents is mandatory for all legal purposes in an LLP.
Requirements of an LLP
- Two people must register the LLP. In contrast, the maximum number of partners is unrestricted
- Every LLP shall be required to have at least two Designated Partners who must have a DIN/DPIN
- One of the LLP’s designated partners must be an Indian citizen
- The Partners’ share can take any form, such as tangible and intangible assets, movable and immovable property, money, or cash.
Meaning of Designated Partner in an LLP: An Overview
Every Designated Partner would have to get a ‘Designated Partner’s Identification Number (DPIN), similar to the ‘Director’s Identification Number’ (DIN) required of the company directors. Enabling provisions have been developed to prescribe under regulations conditions that an individual who is eligible to be appointed as a ‘designated partner’ must meet.
|
MCA had been issuing two distinct identification numbers, namely the Director Identification Number (DIN) for becoming a Director under the Companies Act, 1956 and the Designated Partner Identification Number (DPIN) for becoming a Designated Partner under the Limited Liability Partnership Act, 2008. (LLP Act). To avoid duplication, MCA has decided to issue individuals with only one identification number for both purposes, namely becoming a Director and a Designated Partner. As a result, as of July 9, 2011, the DIN with DPIN stand is integrated. |
Is DPIN a Prerequisite for Incorporating an LLP?
The following are pre-requisites for incorporating an LLP in India –
- A minimum of two partners is required (Individual or body corporate)
- There should be at least two designated partners who are individuals, with at least one of them residing in India
- Certificate of digital signature
- LLP Agreement
- LLP Name
- Registered address
- DPIN/DIN
Hence we can see that DPIN/DIN is a pre-requisite for incorporating an LLP in India.
| If there is a change in the information relevant to the DIN or DPIN, one must submit Form-4 to the ROC. As a result, the form for updating DIN or DPIN data is the same. |
Reasons You May Not Be Successful in Getting a DIN/DPIN
In the following situations, an application for DIN/DPIN may be rejected:
The applicant’s and his or her father’s names are truncated, despite the fact that expanded forms were required
- In the applicant’s name, use of prefixes such as Mr./Ms./kumari, etc
- A mismatch between the DPIN form and the attached identity proof, including spelling mistakes in the applicant’s or his father’s name
- The validity of the linked documents, such as passports, identity cards, and driver’s licences, has expired
- Proofs of residency, such as power bills, bank statements, utility bills, etc., have the name of someone other than the applicant (such as the applicant’s spouse or father’s name) or are older than two months from the date of the application for verification
- The name, membership/practising certificate number, and designation of the supporting documents are not clearly mentioned or duly attested.
DIN/DPIN Allotment: Things to Know
Along with the LLPIN and Name of LLP, the application for DIN allotment now includes the necessity to indicate the DIN of the existing Designated Partner of the LLP. This makes it impossible for anybody else to use DIN unless the LLP’s partners agree. Previously, the allocation application did not correlate the LLP with the application, which might lead to the use of a DIN for prohibited activities or the creation of a duplicate DIN. These activities may be prohibited if the LLP and its partner are linked to the application, and the partners and LLP can be held accountable.
|
https://www.mca.gov.in/mcafoportal/showVerifyDIN.do The aforementioned link can be used to verify a DPIN/DIN’s validity |
DIN/DPIN Application: Procedure
Anyone who wants to start an LLP or become a Designated Partner of an existing one can get a Designated Partner Identification Number. A Designated Partner of an LLP must be a natural living person. As a result, the DPIN can only be obtained for natural persons and cannot be obtained for artificial legal entities such as companies, LLPs, or OPCs.
One must submit the following documents to get a Designated Partner Identification Number:
- A photograph of the applicant
- Proof of the applicant’s identification
- In the case of Indian nationals, a PAN is required.
- In the event of foreign nationals, a passport is required.
- Proof of the applicant’s address
A gazetted officer, notary public, company secretary, or chartered accountant must attest or certify the documents listed above.
The Takeaway
The terms DIN (Director Identification Number) and DPIN (Director Identification Number) are interchangeable. If a person has both a DIN and a DPIN, the DPIN will be cancelled, and the DIN will be used to appoint them as a designated partner of an LLP.
