An LLP must have at least two designated partners, listed in the LLP agreement and holding a Designated Partner Identification Number (DPIN). Partners can be added or removed easily. Compared to other company types, LLPs involve less compliance and are easier to register.

There’s no maximum limit on the number of partners. Joining, exiting, or transferring ownership is simple. Read on to learn how to add a designated partner in an LLP.

Role of Designated Partner in LLP

When joining as a designated partner in an LLP, the individual must understand their key duties and responsibilities.

A designated partner can sign the Statement of Account and Solvency (Form-8), which is a legal declaration.

The LLP must file its annual return within 60 days of the financial year-end. Failing to do so may lead to a fine of over ₹10,000 for each designated partner.

If needed, the designated partner can also file returns or documents on behalf of the LLP.

They must assist authorities by providing documents, information, and signatures during any inquiry or inspection.

If an investigation occurs, the designated partner is responsible for covering related expenses.

Eligibility for Designated Partner in LLP

To become a designated partner in an LLP, certain conditions must be met:

• Must be at least 18 years old.
• Can be an individual or a corporate entity.
• Must have a valid ID (e.g., Aadhaar).
• LLP must have at least two designated partners.
• Should be of sound mind and not involved in any fraud.
• No upper limit on the number of partners.
• At least one designated partner must be a resident Indian.
• Other designated partners must submit consent letters with required documents.
• The partner is liable for actions under the LLP Act, 2008.
• Should not have been bankrupt or unsettled dues in the last 5 years.
• Must inform the LLP of any name/address change within 15 days; the LLP must report it to the Registrar within 30 days using Form 4.

Minimum & Maximum Number of Designated Partners

According to the LLP Act, 2008, a Limited Liability Partnership must have a minimum of two Designated Partners. There’s no restriction on the maximum count.

• Designated Partners handle the operations of the LLP and should be residents of India. Their names must appear in the LLP incorporation documents.
• If a Designated Partner passes away, steps down, or is removed, a replacement must be appointed within 30 days.

If the LLP has less than two Designated Partners, it could be shut down.

Who Is Not Eligible to Be a Designated Partner in LLP

As per the LLP Act, 2008, the following individuals are disqualified from becoming Designated Partners:

• Undischarged insolvent – someone declared bankrupt by a court and hasn’t cleared debts.
• Anyone convicted of fraud or dishonesty – includes crimes like forgery or cheating.
• Those convicted under the Companies Act, 2013 – such as insider trading or fraudulent business practices.
• Persons barred from being company directors – disqualified by court or SEBI.
• Minors – individuals under 18 years of age.
• Body corporates – like companies, LLPs, or trusts, as they aren't natural persons.

Note: Other legal disqualifications may also apply under different laws.

Penalty for Not Appointing a Designated Partner

Under the LLP Act, 2008, every LLP must have at least two Designated Partners, with at least one being a resident of India.

• The LLP may be dissolved by the Registrar.
• A penalty of up to ₹1 lakh can be imposed.
• If an LLP doesn’t have two Designated Partners at registration, it may be dissolved.
• If it loses a partner later, it must appoint a new one within 30 days, or face action.
• The Registrar may also ask the LLP to compensate anyone affected by this non-compliance.

Other laws, like the Companies Act, may also apply additional penalties.

How to Appoint a Designated Partner in an LLP

One of the advantages of an LLP is the flexibility to add or remove partners anytime. However, a new designated partner must understand their duties before being appointed.

Here’s a simplified process:

• Get DIN and Digital Signature for the new partner. A consent letter is also required.
• A meeting is held to pass a resolution for the appointment through the partnership deed.
• The partner’s name is added to the supplementary deed.
• We assist in drafting the deed.
• Within 30 days, Form-4 must be filed with both original and updated deeds.
• Form-3 also needs to be submitted within 30 days.
• After completion, the new partner’s name appears on the MCA website.

Why Choose Sperso Filings

There are several reasons to rely on Sperso Filings for adding a designated partner to your LLP:

• You can easily raise a service request with help from our experts.
• Many clients misunderstand the LLP partner addition process, so we provide a clear and simplified document checklist through direct communication.
• We keep you informed at every stage, especially during document verification.
• In case of any urgent issues, our team ensures transparent and prompt communication.