Introduction
A Limited Liability Partnership is a type of partnership where the partners have limited liability. It is a popular form of business entity in India, especially for small and medium-sized enterprises. The LLP Act, 2008 provides for the appointment of designated partners in an LLP. In this blog, we will discuss how to add a designated partner in an LLP.
What is a designated partner?
A designated partner is a partner in an LLP who is responsible for compliance with the provisions of the LLP Act, 2008. The LLP Act requires that every LLP have at least two designated partners, one of whom must be a resident of India. The designated partners are responsible for filing annual returns and statements with the Registrar of Companies, maintaining the books of accounts, and complying with other legal requirements.
How to add a designated partner in an LLP?
Adding a designated partner in an LLP involves the following steps:
Step 1: Obtain consent from the proposed designated partner
Before appointing a designated partner, it is essential to obtain the consent of the proposed designated partner. The LLP Act requires that the designated partner must provide written consent to act as a designated partner.
Step 2: Obtain a Digital Signature Certificate (DSC) and Director Identification Number (DIN)
The designated partner must have a Digital Signature Certificate (DSC) and Director Identification Number (DIN). The DSC is used to sign electronic documents, while the DIN is a unique identification number assigned to a person who intends to become a director in a company or an LLP. The designated partner can apply for a DSC and DIN online through the Ministry of Corporate Affairs (MCA) website.
Step 3: Amend the LLP agreement
The LLP agreement must be amended to include the name of the proposed designated partner. The amendment must be approved by all the partners of the LLP.
Step 4: File the Form 4 with the Registrar of Companies
The LLP must file Form 4 with the Registrar of Companies within 30 days of appointing a designated partner. The form must be signed by the designated partner and all the other partners of the LLP. The following documents must be attached to the Form 4:
• Consent letter from the proposed designated partner
• Proof of identity of the designated partner
• Proof of address of the designated partner
• Digital Signature Certificate(Dsc) of the designated partner
• LLP agreement (as amended)
Step 5: File the Form 3 with the Registrar of Companies
After the Form 4 is filed, the LLP must file Form 3 with the Registrar of Companies within 30 days of the appointment of the designated partner. The Form 3 is a statement of the designated partners and must be signed by all the designated partners. The following information must be provided in Form 3:
• Name and address of the LLP
• Name, address, and DIN of all the designated partners
• Date of appointment of the designated partners
Conclusion
Adding a designated partner in an LLP is a straightforward process that involves obtaining the consent of the proposed designated partner, obtaining a DSC and DIN, amending the LLP agreement, and After submitting the necessary paperwork to the Registrar of Companies It is essential to comply with the legal requirements to avoid any penalties or legal issues. If you are unsure about the process, it is advisable to consult a professional for guidance.