All you need to know about the Designated Partner of a company
December 29, 2022
A guide on Designated Partner of a company
Table of Content
The LLP Agreement specifies that a Designated partner gap must be closed within 30 days of its formation. Each LLP member is an established partner if no designated partner is selected or if there is only one partner at any one time. If authorized partners cannot be found, the LLP and its partners may face legal consequences.
Who is a Designated Partner?
A limited partnership must have at least two authorized partners otherwise, the remaining partners are responsible for the LLP’s debts directly according to the LLP Act. One of the partners must be an Indian citizen, and both must be individuals rather than businesses or other legal bodies. A minimum of two authorized partners are also needed. A minimum of two individuals who are partners in the LLP or nominees of such bodies corporate must function as designated partners in cases where all of the partners are bodies corporate or if one or more partners are both individuals and bodies corporate.
How to Add a Designated Partner?
Step 1: Obtain the permission of the partner.
Step 2: Submit an application for DSC (Digital Signature Certificate)
Step 3: Obtain a DPIN (Designated Partner Identification Number)- the first letter of every word needs to be capital
Step 4: Create a supplementary deed with the name of a new partner.
Step 5: Submit Form 4 (Notice) with the attached consent letter within 30 days of the appointment.
Step 6: Submit Form 3 (Information regarding the Limited Liability Partnership Agreement and for the revisions, if any) with an original and supplementary deed as an attachment within 30 days after the appointment.
Documents required to add a designated partner in an LLP
Certified copies of your Pan Card, Identification and housing documentation
Digital signature (if available), applicant’s email address, and phone number
Passport size photograph of the applicant
Educational background and information about the capital investment to the LLP
If the applicant is from a foreign nation, a copy of their passport must be attached with-:
Proof of identity:
Driving License (DL)/Registration Certificate (RC)
Electricity Bill (Not older than 3 Months)
Water Bill (Not older than three months)
Rights And Duties of A Designated Partners In An LLP
In accordance with Section 83 of the LLP Act, Designated Partners are accountable for following the law’s/requirements and paying any fines that may result.
In accordance with the LLP Agreement, the Designated Partners in an LLP are legally required to perform specific documentation, such as reports and taxes.
The partnership agreement specifies who is responsible for following the guidelines of any additional laws or regulations.
They are solely accountable for all LLP Act compliance and fines.
The senior partner and Designated Partner organizations are not necessarily the same people, even if the LLP Agreement permits the selection of a portfolio manager in addition to the Designated Partners.
It is the managing partner’s responsibility to make sure all legal obligations are fulfilled.
The designated partner would be liable for carrying out all acts, matters, and things that the LLP is required to carry out and would be accountable for any fines imposed on the LLP for any violation of those requirements. Directors and company secretaries of Limited Liability Companies and authorized LLP members each have comparable responsibilities. They have the same rights and obligations as any other member, but they also have extra managerial tasks and legal obligations with reference to the LLP.
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