Online Adding a Designated partner in LLP

Adding a Designated Partner - Overview

In Limited Liability Partnerships (LLPs), authorized partners play an important role in directing daily operations and maintaining regulatory compliance. Unlike typical partnership forms, which place all management obligations on the partners, LLPs select designated partners as independent organizations to oversee overall corporate management. These authorized partners often comprise persons tasked with managing day-to-day operations, completing statutory requirements, and legally representing the firm before government authorities. In this article, we'll look at who designated partners are, how they're appointed, and how they contribute to LLP governance.

Role of Designated Partner

We also explained how Designated Partners are responsible for overseeing an LLP's internal management. They also conduct responsibilities on behalf of the LLP, such as ensuring statutory compliance, filing applications, and acquiring licenses and certificates in the LLP's name. The chosen partner, like a company's director, functions as the LLP's agent. We've mentioned a few necessary obligations for authorized partners below.

• A Designated Partner must sign the LLP's financial statements and solvency.
• In the context of an investigation, the Designated Partner should help and cooperate with the investigating authorities by supplying the appropriate official documents and records relevant to the LLP.
• The Designated Partner has to pay the inspector for the investigation that was done.
• Within 60 days after the end of the fiscal year, the Designated Partner must correctly file the annual returns with the Registrar; otherwise, the business would be penalized more than Rs. 10,000.
• The Designated Partner must sign the e-forms required by the Registrar and notify the Registrar of any changes to the LLP, such as changes in the partners' names or addresses.

Procedure for Adding Designated Partner

Adding a designated partner to a Limited Liability Partnership (LLP) in India requires following a precise procedure established by the Ministry of Corporate Affairs (MCA). Below is a comprehensive step-by-step guide for adding a designated partner:

• Apply for Digital Signature Certificate
• Apply for DIN Number- Following the DSC, the Director Identification Number of the Director will be entered into the form DIR-3, together with the applicant's address and identification verification.
• Once the DIN is allocated to the designated partner, all current LLP partners will convene and adopt a resolution to include a designated partner in the partnership deed.
• A supplemental partnership deed will be draft, with the new partner's name appended.
• Then the incoming partner's approval will be obtained in writing.
• After these all required documents are prepared, Form 4 of LLP will be filed within 30 days after the appointment.
• Within 30 days of appointment, FORM 3 will be filed, together with the supplementary and original partnership deed.
• After all of these paperwork are filed, the name of the authorized partner will be added and shown on the Ministry of Corporate Affairs' website.
• If Forms 3 and 4 are filed within 30 days, there is an extra cost of Rs. 100/- each day.

Document Required for Add a Designated Partner

Add a designated partner to a Limited Liability Partnership (LLP) in India, you will need the following documents:

• Consent to act as a designated partner: The designated partner must give their permission to act as a partner in the LLP.
• Board Resolution: A resolution by the board of directors is required for the appointment of a designated partner in the Limited Liability Partnership (LLP).
• LLP Agreement: The nomination of designated partners must be consistent with the LLP agreement.
• Identity Proof: The Designated partner must give a copy of their PAN card, Aadhaar card or passport as identity verification.
• Address Proof: A copy of the Designated partner's Aadhaar card, driver's license, or utility bill is required as address proof.
• Photograph: A recent passport-size photographof the designated partner.
• Digital Signature Certificate: The Designated Partner must have a valid DSC to sign the appointment-related e-forms.

Procedure to Make Changes in LLP Agreement

Before making the Change in LLP Agreement, there are a few formal actions to be taken:

• The first stage in forming a Limited Liability Partnership is to hold a meeting with all partners and obtain their permission. This is accomplished by passing a resolution for the partners.
• One of the Partners is authorised to fulfill appointment requirements and file with the Ministry of Corporate Affairs (MCA).
• After completing the stages above, the LLP Agreement is executed by paying stamp duty.
• Requirements for Stamp Duty, Supplementary Deed, and LLP Agreement validity.
• Partners must sign the agreement.
• Attestation requires at least two witnesses.

Once all of the preceding stages have been successfully accomplished, the next steps to modify the LLP Agreement are straightforward. The steps are as follows.

• Passing a Resolution is required to revise the LLP Agreement.
• If the resolution is passed within 30 days, Form-3 must be filed with the Registrar.