Add Designated Partner In LLP – India Company Incorporation
The Limited Liability Partnership Act of 2008 has established the idea of having designated partners in LLP. Directors of a Private Limited Company are comparable to Designated Partners. When compared to a director of a company, a designated partner in an LLP has additional rights and privileges. The rights, responsibilities, and privileges of a Designated Partner are thoroughly examined in this article.
LLP Designated Partners may be anyone?
The only permitted partners are persons. Two or more partners may be designated as a Designated Partner from among the members of a Limited Liability Partnership. Among all the designated partner, At least one Designated Partner in every LLP must be an Indian resident.
The following people are ineligible to be designated partners:
- Unresolved insolvent.
- A person who has been implicated for the last five years.
- A person who has refused to pay their creditors at any point over the five years prior and has not reached a compromise with them.
- A person who has served at least six months of a jail sentence for any immoral behaviour.
- Minors who are under 18 years old.
However, the Central Government is empowered with the rights to annul the disqualification of a person.
Identification Code for the Designated Partner (DPIN)
A Designated Partner Identification Number (DPIN) or Director Identification Number is necessary for all Designated Partners in an LLP (DIN). Despite being referred to by various names, Designated Partner Identification Number (DPIN) and Director Identification Number (DIN) are interchangeable and the same number. A class 3 digital signature for the Designated Partner is required in order to get DPIN.
The position of Designated Partner is available to all LLP partners. The incorporation paperwork must name specific individuals as Designated Partners in order for the LLP to be registered. The role of Designated Partner may be subject to review and rotation under the LLP Partnership Deed, ensuring that all partners are involved.
With the approval of the other Partners already in the LLP, anyone can become a Designated Partner.
Documents Required for Becoming Designated Partner
To receive a DPIN and become a Designated Partner in an LLP, the following paperwork must be submitted:
- A copy of the identity proof that has been attested or certified and includes a self-portrait, the date of birth, and the name of the father or husband.
- A certified or attested copy of the evidence of residence.
- If the applicant is the body corporate’s nominee, he or she must enclose a copy of the resolution or authorization on the organization’s letterhead. The individual’s details including name and address must be mentioned, among other details.
- A copy of the applicant’s current passport would be sufficient if they were a foreign national.
- Authorities for Certification and Attestation
The below mentioned are list of the authorities in charge of attestation and certification:
- Officer of the Central/State Government with a gazette.
- Public notary.
Those who hold a certificate of practise under the Company Secretaries Act of 1980, the Charted Accountants Act of 1949, and the Cost and Works Accountants Act of 1959 are known as company secretaries, chartered accountants, and cost and works accountants.
When certifying the documents, the attesting authority must state the following:
- Capitalize the attesting authority’s name.
- Number of registration.
- Name of the department or ministry where the Gazetted Officer works.
A certified copy of the translation must be attested to the form if the proof’s language is any other than Hindi or English.
The designation of a designated partner
During Limited Liability Partnership (LLP) two or more individuals as Designated Partners must be made. If a Designated Partner leaves an LLP, the LLP must replace him or her within 30 days; otherwise, all partners in the LLP would be regarded as Designated Partners. The following forms are pertinent for designating a partner in a limited liability partnership (LLP):
- Form 9: Form 9 serves as a record of an assessee’s agreement to become a Designated Partner.
- Form 4: On this form, the information about the people who have provided their consents is listed.
- Form 10- Form 10 notifies the Designated Partners of any alterations.
- Form 5- It is the duty of every LLP to fill up this form with the information of each person who has given their consent to be a Designated Partner and submit it to the registrar. Within 30 days after the Designated Partner’s appointment, the form must be submitted.
Government for Designated Partner Appointment
The following is the government filing fee for consent and designated partner appointment:
LLP, whose maximum contribution is Rs. 1,00,000-Rs.
LLP, whose contribution is greater than Rs 1,00,000 but not more than Rs 5,000,001- Rs 100.
LLP, whose contribution is limited to Rs 10,00,000-150 but surpasses Rs 5,00,000 in total.
LLP, whose contribution is between Rs. 200 and Rs. 10,000.
Responsibilities of a designated party
It is clear that a All Designated Partner must file documents, statements, taxes, etc., but that is not the end of his or her responsibilities. Below are a few important ones must that we’ve listed:
- On the Statement of Account and Solvency, which is filled up by the LLP, the Designated Partner is permitted to sign it.
- The Limited Liability Partnership (LLP) is required to submit annual returns to the Registrar in prescribed format within a time frame of 60 days from following the end of the financial year.
- Every Designated Partner shall be subject to a fine exceeding Rs 10,000 if this is not done.
- If the necessity arises, the Designated Partner may file the document returns.
- The Designated Partner must cooperate with the inspector during an inquiry or inspection by providing the authority with the relevant papers, data, and signatures for examination, among other things.
- A Designated Partner is responsible for covering the Inspector’s investigation-related costs.
Penalty for Not Having Designated Parnter
Every LLP must have at least two Designated Partners in order to operate. If the requirements are not met, a penalty of at least Rs 10,000 may be assessed. Additionally, LLP will be subject to penalties of the same kind as those outlined above if the vacancy caused by the departure of a Designated Partner is not filled within a 30-day window.
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