When a person wishes to be a designated partner in a LLP (Limited Liability Partner) at that time it is mandatory for an individual to acquire DPIN (Designated Partner Identification Number). In this article information on Documents required for obtaining DPIN, Designated Partner in LLP, Validity of DPIN, and duties of the designated partner is mentioned.
Firstly, Let’s acquire knowledge about Designated Partner and rights of a Designated Partner in a LLP.
A Limited Liability Partnership firm requires that at least two individuals hold the designation of Designated Partner. The name of the Designated Partners must be stated in the incorporation document at the moment the LLP is registered. To ensure that each member has an equal opportunity to participate, the LLP Partnership Deed may provide for review or rotation of the Designated Partner function.
The status of designated partner in an LLP is comparable to that of a director of a company, and in some cases, it even has greater rights and advantages. Two or more people must be designated as Designated Partners and receive DPIN at the time the LLP is registered. It is mandatory for LLP to have 2 Designated Partners.
Anyone who requests to be identified as a Designated Partner of a Limited Liability Partnership is issued a DPIN by the Ministry of Corporate Affairs. To put it another way, an LLP assigns a role to each Designated Partner.
The chosen partner’s DPIN or the number assigned to them acts as evidence of their legitimacy in law. The Director Identification Number (DIN) and the DPIN are frequently used interchangeably. You must first get the approval of the other current partners and acquire a Class 2 digital signature before you can become a Designated Partner.
According to Rule 10(1)(a) of the Limited Liability Partnership Rules, 2009, every person who want to be nominated as a designated partner of an existing Limited Liability Partnership must submit a Form DIR-3 to obtain a DPIN (Designated Partner Identification Number).
Anyone who wants to establish an LLP or become a Designated Partner of an existing LLP can get a Designated Partner Identification Number. A Designated Partner of an LLP may only be a natural living person. Therefore, only natural people may get the DPIN. Artificial legal entities such as companies, LLPs, OPCs, etc., can not be registered as a designated partners in a LLP. Obtaining a Designated Partner Identification Number requires the submission of the following paperwork:
Gazetted Office, Company Secretary, Chartered Accountant, Notary Public or a Cost Accountant need to certified or attested the above documents to the MCA (Ministry of Corporate Affairs).
When a request for a DPIN is submitted to the MCA, a DPIN number is automatically assigned or marked for resubmission. The following are some of the most frequent causes for resubmitting a DPIN application:
Form-4, which is the same form used to modify the details of DIN or DPIN, can be used to notify ROC of changes to information linked to DIN or DPIN. Any person planning to be a designated partner of a Limited Liability Partnership must register for a designated partner identification number, as the name suggests.
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