Appointment of a Designated Partner in Your LLP

In LLPs, designated partners manage daily operations and legal compliance, serving as separate entities for management and representation, unlike traditional partnerships. They handle day-to-day tasks, meet statutory requirements, and represent the business before government authorities.

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Four Steps to Add a Partner in a Limited Liability Partnership (LLP)

Fill the Form

Provide business details

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Pay the required fee online

Submit Documents

Upload required papers

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Find the best plan for your needs

Basic Plan

₹ 2,999
+GST
  • Consultation on Appointment Process
  • Preparation of Consent Documents for New Partner
  • Filing of Form 4 for Partner Addition

Standard Plan

₹ 5,499
+GST

Basic Plan
+

  • DPIN of Incoming Partner
  • Digital Signature Certificate (DSC) for the new partner
  • LLP Amendment Agreement Drafting
  • Filing of Form 3 for LLP agreement Amendment

Premium Plan

₹ 7,499
+GST

Standard Plan
+

  • Dedicated Account Manager
  • Compliance Calendar for New Partner
  • Assistance in updating GST, PT, ESI, PF Records

Overview

A Limited Liability Partnership (LLP) is a popular business structure that combines the benefits of a company and a partnership. Every LLP must have at least two Designated Partners who are responsible for regulatory and compliance obligations.

If you need to appoint a Designated Partner in your LLP, this guide will help you understand the process, requirements, and legal formalities in a simple and clear manner.

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Process of Appointing a Designated Partner in an LLP

Applying for a DPIN is a straightforward process. Follow these steps

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Before applying for a DPIN, the individual must obtain a DSC, which is required for digital filing with the MCA.

If the individual does not already have a DPIN, they must apply for it using Form DIR-3 on the MCA portal. This requires submitting identity proof, address proof, and a passport-sized photograph.

If the LLP agreement needs to be updated to include a new designated partner, an amendment must be drafted and executed with the consent of existing partners.

The LLP must conduct a meeting of the partners and pass a resolution approving the appointment of the designated partner. The resolution should be documented for compliance purposes.

The appointment must be officially reported to the MCA by filing Form-4 within 30 days of the appointment. The following details are required:

      • DPIN of the new partner
      • Consent letter from the designated partner
      • Amended LLP agreement (if applicable)
      • Certified copy of the resolution passed by the LLP

If there is any change in the LLP agreement, Form-3 should be filed along with Form-4 to reflect the appointment of the designated partner.

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Documents Required for Appointment of Designated Partner

To appoint a designated partner, the following documents are typically required

For the Individual Being Appointed

For the LLP

PAN Card (mandatory for Indian nationals)

LLP Agreement

Passport (mandatory for foreign nationals)

LLP Incorporation Certificate

Aadhar Card / Voter ID / Driving License

Resolution passed by the partners

Address Proof (Utility bill, Bank Statement, etc.)

Consent Letter from the designated partner

Passport-sized photograph

Digital Signature Certificate (DSC)

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Frequently Asked Questions

How can a person become a partner of an LLP?

Persons, who subscribed to the “Incorporation Document” at the time of incorporation of LLP, shall be partners of LLP.
After incorporation, new partners can be admitted to the LLP as per the conditions and requirements of the LLP Agreement.

What will be the obligation of a partner in case he changes his name or address?

Every partner shall inform the LLP of any change in his name or address within fifteen days of such change.
In turn, the LLP would be obliged to file such details with the Registrar within thirty days of such change in Form 4.

What are the qualifications for becoming a partner?

Any individual or body corporate may be a partner in an LLP. However, an individual shall not be capable of becoming a partner of a LLP if—
he is of unsound mind by a Court of competent jurisdiction and the finding is in force;
he is an undischarged insolvent; or
he has applied to be adjudicated insolvent, and his application is pending.

How are partners added to LLP?

The Partners can be added by entering into the Supplemental LLP Agreement to the Original LLP Agreement.
No special approval is required from any other authorities. However, the addition of the Partners in the LLP is to be intimated to the jurisdictional ROC by filing LLP Forms No. 3 and 4 within 30 days of the execution of the supplemental LLP Agreement for the addition of the partners.

Is it compulsory for a new partner to bring the capital to the LLP?

Not all the incoming partners need to contribute to the capital of the LLP.
Partners may not bring in the additional contribution to the capital of the LLP.
However, whenever any incoming partner contributes to the capital of the LLP, then the capital ratio and the profit-sharing ratio may also change.

What forms will a designated partner have to fill at the time of addition?

The designated partner will have to fill out DIR Form 3 and Form 4 and submit it to the authorities to get added to the designated partners’ list of an LLP in India.

What are additional documents required for a foreign national who wants to be a designated partner?

Yes, a foreign national can be a designated partner in an LLP in India. He has to furnish his passport in addition to the documents required by Indian designated partners. Suppose his passport is in any foreign language other than English. In that case, he will have to get it apostilled, notarised, and then submit it.

How much time is needed for the addition of the Partner in LLP?

The addition of Partners usually takes 1-2working days, subject to the approval of the jurisdictional ROC and the receipt of documents from the clients.