How to Add a Designated Partner in LLP?

The role of designated partners in an LLP is to look at the overall functioning and management of the LLP. A designated partner is responsible to take important decisions which are in his jurisdiction in the company.

• A designated partner is authorised to put his signatures on the important documents of the LLP company.
• The LLP company is also responsible for filing annual financial returns as per the rules mentioned by the government of India.
• The Designated partner is responsible for taking decisions in the LLP.

How to Add a Designated Partner in an LLP in Simple Steps:

• LLP Agreement: Go through the existing LLP agreement; it must allow the inclusion of designated partners and provide the manner for their appointment. In case of confusion, seek advice from a lawyer to interpret the meaning of such terms.
• Designated Partner: Identify who the designated partner shall be. He must be eligible under the LLP Act and also may be required to satisfy the additional requirements under the LLP agreement.
• Obtain a DSC : The appointee shall obtain a DSC from the MCA. The DSC shall be used to sign documents online during the appointment.
• Obtain DPIN/DIN: A person who doesn't have a DIN has to apply for a designated partner identification number from the Ministry of Corporate Affairs, which is a unique ID for designated partners in an LLP.
• Consent and Approval : The appointment, after getting the DSC and DIN, should be approved by the existing LLP partners either by a resolution at a meeting of partners or in any other manner provided in the LLP agreement.
• Preparation and Filing of Form 4 : The form to be prepared and filed with the ROC is Form 4, which is the Notice of Appointment of Designated Partner. Specify the name of the LLP, LLPIN, DIN of the proposed designated partner, and date of appointment. The form should be signed by the existing partners and the designated partner.
• Pay the Fee : Along with Form 4, pay the required fees for adding the designated partner. The fee depends upon the capital of the LLP and rules of ROC.
• Certificate of Designation : After verification of documents and the fee, the ROC will process the application. When approved, ROC issues a Certificate of Designation, which confirms the appointment of the partner.
• LLP Agreement: The LLP agreement should be updated with a new designated partner. Amend the details of profit sharing, responsibilities, and rights.

Adding a designated partner is a major compliance requisite that involves necessary documents and their timely filing with the ROC. It's possible but doing it without help can cause delays or mistakes.

Professional Utilities can assist in document preparation, filing of forms, and approvals for a quick, smooth process.

Contact Professional Utilities today to add your designated partner with ease and accuracy.