Adding a designated partner in a Limited Liability Partnership (LLP) in India means appointing an individual to manage the affairs of the LLP. The designated partner holds similar rights and responsibilities as a director in a company. It is a process of expanding the management team and sharing the managerial responsibilities within the LLP.
PROCEDURE
The procedure for adding a designated partner in a Limited Liability Partnership (LLP) in India involves the following steps:
- ELIGIBILITY: Ensure that the person being added as a designated partner meets the eligibility criteria set by the LLP Act, 2008. This includes being above 18 years of age and not being disqualified from being appointed as a partner.
- CONSENT AND AGREEMENT: Obtain the consent of the person willing to be appointed as a designated partner. Prepare and execute a LLP Agreement or amend the existing agreement to reflect the addition of the new designated partner.
- DESIGNATION AND DIN: Obtain a Director Identification Number (DIN) for the new designated partner, if they don't already have one. The DIN can be obtained by submitting an online application to the Ministry of Corporate Affairs (MCA).
- FILING OF FORMS: Prepare and file the necessary forms with the Registrar of Companies (ROC) within 30 days from the date of appointment. This includes Form-4 (Notice of Appointment of Designated Partner) and Form-9 (Consent to become a Designated Partner).
- PAYMENT OF FEES: Pay the prescribed fees for filing the forms. The fee amount depends on the contribution and capital of the LLP.
- APPROVAL AND CERTIFICATE: After the forms and fees are submitted, the ROC will review the application. If everything is in order, the ROC will issue a Certificate of Incorporation with the new designated partner's details.
ELIGIBILITY CRITERIA
- AGE: The person must be at least 18 years old.
- CAPACITY: The person must have the capacity to contract as per the Indian Contract Act, 1872. This means they should not be disqualified or incapacitated by law from entering into contracts.
- NOT DISQUALIFIED: The person should not be disqualified from being appointed or continuing as a designated partner under the provisions of the LLP Act, 2008. Disqualifications can arise from factors such as insolvency, conviction for fraud, or being declared mentally unsound.
FAQs
An LLP must have at least two designated partners, and at least one of them should be a resident of India.
No, a minor cannot be appointed as a designated partner in an LLP. The person must be at least 18 years old.
Yes, a foreign national can become a designated partner in an LLP, provided they fulfill the eligibility criteria and obtain the necessary approvals, such as a valid visa or work permit.
Yes, a designated partner can be removed from an LLP. The procedure for removal should be followed as per the provisions of the LLP Agreement and the LLP Act, 2008.
The fee amount depends on the capital and contribution of the LLP. The exact fee structure can be obtained from the official website of the MCA.