Know The Procedure to appoint or add a designated partner in LLP (Limited Liability Partnership)
In this we provide you the information about the LLP, eligibility to become a designate partner and the procedure to add the designated partner in LLP.
These are the few advantages of LLP. In LLP once appointed, a partner or a designated partner can be changed, removed or appointed.
If you want to add a designated partner to your business there are some eligibility criteria to follow. Then what are the eligibility criteria to follow to become a designated partner?
Eligibility Criteria to become a Designated Partner in LLP
The below are the eligibility criteria to become a designated partner in Limited Liability Partnership (LLP).
- To become a designated partner one has to be an individual.
- The individual who wish to join as a designated partner in Limited Liability Partnership (LLP) must contain a valid identification number. After consisting of a valid identification number an individual is eligible for appointment as a designated partner.
Then what is meant by LLP?
What is meant by LLP?
The partnership which allows at least one owner limited personal liability for the business financial obligations, such as debts and court judgment is called the Limited Liability Partnership (LLP).
LLP is different from a limited partnership. It operates like a limited partnership, but in an LLP each member is protected from personal liability, expect to the extent of their capital contribution in the LLP.
Advantages of LLP:
- The main advantage of LLP is Limited personal liabilities provided to each of the partners.
- All the decisions and various management activities are seen and done by the directors of the company.
- There is no restriction upon the joining and leaving the LLP. It is easy to admit as a partner and to leave the firm or to easily transfer the ownership on others.
Who can be a Designated Partner?
Every LLP should require have at least two designated partners who shall be individuals and at least one of the designated partners shall be a resident of India.
In case of a LLP in which all the partners are bodies corporate or in which one or more partners are individuals and bodies corporate. At least two individuals who are partners of such LLP or nominees of such bodies corporate shall act as designated partners.
Then how to add the designated partner in LLP?
Procedure to add a Designated Partner in LLP
The below are the steps to follow to add a designated partners in LLP.
- The person, who wish to join as a designated partner must contain a valid director identification number.
- The Director Identification number may be obtain by filling the FORM DIR -3 which is available in http://www.mca.gov.in/
- Complete this application and submit with the required documents which are given below and this form require pre certification from practicing professional.
Documents required applying for Director Identification number in LLP
The below are the documents required to apply for the director identification number.
- Pan card of the application
- Aadhar card
- Passport size photograph
- Email ID and phone number.
- After the Director Identification number is allotted for the designated partner. The proposed designated partner is required to intimate his Director Identification number to the LLP.
- A supplementary partnership deed will be drafted in which the partner’s name will be added. And the consonant of the partner will also be added.
- And then form-4 of LLP will be filed within the 30 days of the appointment.
- After this form will also have to fill along with the supplementary and the original partnership deed within the 30 days of the appointment.
- After completing all these formalities the name of the designated partner will be added and the name is displayed on the website of the MCA.
By following this process one can add their designated partner to the LLP. For more information about LLP visit official website www.mca.gov.in