Designated Partner in LLP - A Complete Guide

A Limited Liability Partnership (LLP) requires at least two designated partners who are responsible for regulatory compliance and business management. These partners must be named in the LLP agreement and have a Designated Partner Identification Number (DPIN).

Unlike other business structures, LLPs allow flexibility, making it easy to add or remove designated partners without disrupting business operations.

At Calzone, we simplify the process of adding, removing, or updating designated partners in an LLP, ensuring 100% legal compliance with the LLP Act, 2008.

Role & Responsibilities of a Designated Partner in an LLP

A Designated Partner has specific legal and administrative responsibilities in an LLP, including:

Calzone ensures your Designated Partner meets all legal obligations, reducing risks of penalties or non-compliance.

Eligibility Criteria for Becoming a Designated Partner in an LLP

To be appointed as a Designated Partner, an individual must meet the following criteria:

• Must be at least 18 years old.
• Can be an individual or body corporate (except ineligible entities - see below).
• Must have a valid DPIN (Designated Partner Identification Number).
• At least one Designated Partner must be a resident of India.
• Should not be involved in fraudulent activities.
• Must be of sound mind and not declared bankrupt in the past 5 years.
• Should not have unresolved financial disputes with creditors in the last 5 years.
• Other Designated Partners must provide a consent letter and proof of identification.
• If a Designated Partner changes their name or address, they must notify the LLP within 15 days. The LLP must then file Form 4 with the Registrar of Companies (ROC) within 30 days.

Need to add a Designated Partner? Calzone handles the entire process efficiently and ensures compliance with MCA regulations.

Who Cannot Be Appointed as a Designated Partner in an LLP?

Under the LLP Act, 2008, the following individuals cannot serve as a Designated Partner:

Calzone ensures that only legally qualified individuals are added as Designated Partners in your LLP.

Minimum & Maximum Number of Designated Partners in an LLP

• Minimum: 2 Designated Partners are mandatory under the LLP Act, 2008.
• Maximum: There is no upper limit to the number of Designated Partners in an LLP.
• If a Designated Partner resigns, dies, or is removed, the LLP must appoint a replacement within 30 days.
• Failure to maintain at least two Designated Partners may result in the LLP being dissolved.
• Calzone ensures compliance with LLP partner regulations, preventing legal complications.

Penalty for Not Appointing a Designated Partner

If an LLP fails to maintain at least two Designated Partners, the consequences include:

• Dissolution of LLP by the Registrar of LLPs.
• Penalty of up to ₹1 lakh imposed on the LLP.
• Penalty on individual Designated Partners ranging from ₹10,000 to ₹1 lakh per partner.
• Additional liabilities or legal consequences under the Companies Act, 2013.

Avoid penalties! Calzone ensures your LLP maintains the required number of Designated Partners at all times.

Process for Adding a Designated Partner in an LLP

The addition of a Designated Partner in an LLP requires MCA approval and legal documentation.

Step-by-Step Process

• Step 1: Obtain DPIN & Digital Signature Certificate (DSC)
  • The new partner must apply for a DPIN through Form DIR-3.
  • A Digital Signature Certificate (DSC) is also required for legal filings.
  • Calzone assists in obtaining DPIN & DSC within 24-48 hours.
• Step 2: Obtain Partner's Consent
  • A written consent letter from the new partner is required.
• Step 3: Pass a Resolution in a Partner's Meeting
  • The LLP must pass a resolution to approve the appointment.
  • The supplementary LLP agreement should include the new partner's name.
• Step 4: File Form 4 with the ROC
  • The LLP must file Form 4 within 30 days of the appointment.
  • Attach the resolution and partner's consent letter.
• Step 5: File Form 3 to Update LLP Agreement
  • Within 30 days of appointment, file Form 3 with an updated LLP Agreement.
• Step 6: MCA Approval & LLP Database Update
  • Upon successful verification, the new Designated Partner's name will appear on the MCA website.

Calzone ensures a smooth process for adding a Designated Partner, handling all legal filings and approvals.

Why Choose Calzone for Designated Partner Appointments?

• Complete Legal Compliance - We handle DIN/DPIN, DSC, Form 3 & 4 filings.
• Hassle-Free Documentation - Avoid errors with expert-prepared forms & agreements.
• Expert Advisory - Our Chartered Accountants & Legal Experts ensure compliance.
• Affordable & Transparent Pricing - No hidden costs, just fast & reliable service.

Need to add a Designated Partner? Contact Calzone today for expert assistance!

Frequently Asked Questions (FAQs)