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.

Here's a step-by-step guide on how to add a designated partner in an LLP:

• Check LLP Agreement: Begin by reviewing the existing LLP agreement. Ensure that it allows for the addition of designated partners and specifies the procedure for their appointment. If necessary, consult with legal professionals to understand the terms and conditions set forth in the agreement.
• Selection of Designated Partner: Identify the individual who will be appointed as the designated partner. This person should fulfill the eligibility criteria as per the LLP Act and meet any specific requirements mentioned in the LLP agreement.
• Obtain Digital Signature Certificate (DSC): The designated partner-to-be must obtain a Digital Signature Certificate (DSC) from MCA. The DSC is essential for digitally signing the required documents during the appointment process.
• Obtain Designated Partner Identification Number (DPIN): If the selected individual doesn't already have a DIN, then they must apply for it from the Ministry of Corporate Affairs. The DIN serves as a unique identification number for individuals acting as designated partners in an LLP.
• Approval and Consent: Once the DSC and DIN are obtained, the existing partners of the LLP should approve the appointment of the new designated partner. This approval can be done through a resolution passed in a partners' meeting or by following the procedure mentioned in the LLP agreement.
• Prepare and File Form 4: Prepare and file Form 4 (Notice of Appointment of Designated Partner) with the Registrar of Companies (ROC). The form should include details such as the LLP's name, LLPIN (LLP Identification Number), DIN of the designated partner, and effective date of appointment. Ensure that the form is duly signed by the existing partners and the designated partner.
• Pay the Required Fees: Along with Form 4, pay the prescribed fees for adding the designated partner in LLP. The fee amount may vary based on the LLP's capital and the applicable rules of the Registrar of Companies.
• Receive Certificate of Designation: After verifying the submitted documents and fee payment, the ROC will process the application. Once approved, the ROC will issue a Certificate of Designation, officially recognizing the designated partner's appointment.
• Update LLP Agreement: Update the LLP agreement to reflect the addition of the designated partner. Make necessary amendments to the agreement, including details of profit-sharing, responsibilities, and rights of the designated partner.