Appointment of Designated Partner in LLP

Introduction:

As per Section 7 of LLP, 2008 every LLP shall have at least two Designated Partners (DP) who are individuals and at least one of them shall be residents in India. Only an Individual can be appointed as Designated Partner. To add a new Partner to an existing LLP, the consent of all existing Partners is usually required. However, if the LLP agreement permits, one Partner can also have the powers to admit new Partners to the LLP without consent of all the existing Partners in the LLP.

various reasons for the addition of Partner in LLP

a) Family run LLP Business

b) Invest Capital in LLP Change in role & responsibilities of LLP

c) Mutual consent of Partners

d) Family run LLP Business

e) Expansion LLP Business

f) Retirement of existing Partner

Documents require from new Designated partner

a) DIN of Designated Partner

b) Name proof and address proof of the person to be appointed including PAN of the same.

c) Consent to act as designated partner (Form-9).

d) Details of other partnerships, directorship, if any.

Procedure for appointment of Designated Partner/Partner in LLP

1) Apply for Digital Signature:

Digital Signature (DSC) of proposed Partner is required for applying DPIN. The following documents are required for the DSC application:

a) PAN Card of the applicant

b) Aadhaar Card of the applicant

c) Photo of the applicant

d) Email Id of the applicant

e) Phone number

2) Apply for DPIN:

DPIN of proposed designated partner will be applied in e-form DIR-3 along with identifying and address proof of the applicant (Proposed designated partner).

3) Meeting of existing partner:

Once the DIN is allotted to the designated partner, all the existing partners of the LLP will call a meeting and pass a resolution to add a designated partner in the partnership deed.

4) Drafting of a supplementary partnership deed:

A supplementary partnership deed will be drafted in which the new partner’s name will be added.

5) Consent of new Partner:

Then the consent of the incoming partner will be taken in writing.

6) Filling of e-forms with the ROC:

a) After these documents are prepared, Form – 4 of LLP will be filed within 30 days of the appointment.

b) After filing this form, FORM – 3 will be filed, along with the supplementary and the original partnership deed within 30 days of appointment.