How to Start a Appointment of Designated Partner

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An Overview of the Appointment of Designated Partner

For Limited Liability Partnerships (LLPs) in India, the selection of a designated partner is an essential step. A designated partner is in charge of making sure the LLP abides by all rules and laws. Every LLP must have at least two designated partners, one of whom must be a resident of India. Swarit Advisors provides thorough assistance to people and businesses looking to name a designated partner in their LLP. Our team of legal experts helps with the drafting of all required paperwork and the submission of the appointment form and offers comprehensive support all along the way. We recognise the significance of designating a designated partner in an LLP, and we work to ensure compliance with all relevant rules and regulations while attempting to make the process as easy as possible.

Criteria for Appointment of Designated Partner

Certain requirements for eligibility must be satisfied in order to designate a partner in an LLP. A few of these include:

  1. Minimum Age: The designated partner must be at least 18 years old.
  2. Designated Partner Status: Only partners in an LLP can be appointed as designated partners.
  3. LLP Agreement: The appointment of designated partners must be in accordance with the LLP agreement.
  4. No Disqualification: The designated partner must not be disqualified under any law from becoming a partner or holding an office in an LLP.
  5. Indian Resident: At least one of the designated partners must be an Indian resident.
  6. DIN: The designated partner must have a Director Identification Number (DIN) issued by the Ministry of Corporate Affairs.
  7. DSC: A designated partner must have a Digital Signature Certificate (DSC) to sign e-forms required for the appointment.

It is essential to ensure that all the eligibility criteria are met before appointing a designated partner to avoid any legal complications.

Benefits of Appointing a Designated Partner

There are a number of advantages to designating a partner in an LLP, including:

  1. Legal Compliance: A designated partner is responsible for ensuring that the LLP complies with all legal requirements and regulations.
  2. Ease of Management: With the appointment of a designated partner, the LLP can delegate its management responsibilities, which results in better management of the business.
  3. Limited Liability Protection: The limited liability protection offered by an LLP structure ensures that its partners' personal assets are not at risk in the event that the LLP is found to be liable for any obligations or debts.
  4. Continuity of Business: In an LLP, the appointment of designated partners ensures continuity of business operations, even in the case of the death or resignation of a partner.
  5. Credibility: Appointing designated partners adds credibility to the business and increases the confidence of investors, clients, and other stakeholders.
  6. Tax Benefits: LLPs are taxed at a lower rate than companies, which makes it a more tax-efficient business structure.

Required Documents for Appointment of Designated Partner

The following documentation is needed in order to designate a partner in an LLP:

  1. Consent to act as a designated partner: The designated partner must provide their consent to act as a partner in the LLP.
  2. Board Resolution: A board resolution must be passed by the LLP to appoint a designated partner.
  3. LLP Agreement: The appointment of designated partners must be in accordance with the LLP agreement.
  4. Identity Proof: The designated partner must provide a copy of their PAN card or passport for identity proof.
  5. Address Proof: A copy of the designated partner's Aadhaar card, driving license, or utility bill must be submitted as address proof.
  6. Photograph: A recent passport-size photograph of the designated partner must be submitted.
  7. Digital Signature Certificate (DSC): The designated partner must have a valid DSC for signing the e-forms required for appointment.

Process for Appointment of Designated Partner

The process of appointing a designated partner in an LLP involves the following steps:

  1. Hold a meeting of the board of directors and pass a resolution for the appointment of a designated partner.
  2. Obtain a consent letter from the designated partner consenting to their appointment.
  3. Prepare and execute the LLP agreement in accordance with the provisions of the LLP Act.
  4. File form LLP-3 with the Registrar of Companies (ROC) within 30 days of the appointment.
  5. Pay the prescribed fee for the appointment of the designated partner.
  6. Once the form and fee are processed by the ROC, the designated partner will be added to the LLP and their appointment will be considered valid.

Validity of Designated Partner Appointment

The appointment of a designated partner in an LLP is valid for the duration specified in the LLP agreement or until the partner resigns or is removed from the position. A designated partner can be removed from the position through a resolution passed by the board of directors or as specified in the LLP agreement.It is important to note that any changes in the appointment of designated partners must be intimated to the Registrar of Companies (ROC) by filing the required forms within the stipulated time period. Failure to do so can result in penalties or legal consequences.

Swarit Advisors Support

Swarit Advisors offers end-to-end support for the appointment of a designated partner in an LLP. Our legal team ensures that the appointment process meets all legal requirements and is completed quickly. We offer a wide range of services, including drafting and reviewing appointment documents, filing the appointment form, and legal advice throughout the appointment's duration. We strive to make the process hassle-free and straightforward for our clients by leveraging our extensive knowledge and experience in designated partner appointments. To schedule a consultation with one of our legal experts and ensure a smooth and legal appointment of a designated partner, please contact us.

Frequently Asked Questions

A designated partner is an individual appointed by an LLP to manage its operations and make decisions on behalf of the LLP.

Yes, an LLP can have more than one designated partner as per the LLP agreement.

The procedure involves passing a resolution, obtaining consent from the designated partner, executing the LLP agreement, and filing form LLP-3 with the ROC.

There is no limit on the maximum number of designated partners an LLP can have.

No, being a designated partner in an LLP is not subject to any special requirements.

Yes, a designated partner can be removed from their position through a resolution passed by the board of directors or as specified in the LLP agreement.

Yes, the appointment of a designated partner must be intimated to the ROC by filing the required forms within the stipulated time period.

The validity period is specified in the LLP agreement or until the partner resigns or is removed from the position.

Yes, a person can be a designated partner in more than one LLP as per the provisions of the LLP Act.

Yes, Swarit Advisors can provide end-to-end support in the appointment process and ensure compliance with all legal requirements and regulations.

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Swarit Advisors Private Limited

Haradhan Saha

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