A Limited Liability Partnership (LLP) is a popular form of business entity in India due to its flexibility and ease of operation. An LLP requires at least two designated partners to be registered with the Ministry of Corporate Affairs (MCA). If you are looking to add a designated partner to your LLP, there are certain mandatory things that you must follow.
In this article, we will discuss these mandatory things that should be followed to add a designated partner in an LLP.
- Check the eligibility of the designated partner:
The first and foremost thing to consider is the eligibility of the designated partner. As per the LLP Act, 2008, the designated partner must be an individual who is a resident of India and has attained the age of 18 years. Additionally, the designated partner should not be declared as an insolvent or convicted of any offense involving moral turpitude.
- Obtain a Digital Signature Certificate (DSC):
To add a designated partner in an LLP, you must obtain a Digital Signature Certificate (DSC). Digital signatures are used to sign papers electronically. It is mandatory to have a DSC for all designated partners and partners of an LLP.
- Obtain a Director Identification Number (DIN):
The next step is to obtain a Director Identification Number (DIN) for the designated partner. A DIN is a unique identification number assigned by the MCA to the directors of companies and designated partners of LLPs. It is mandatory for all designated partners of an LLP to have a DIN.
- Hold a meeting of the existing designated partners:
Once the designated partner is eligible, has obtained a DSC and a DIN, the next step is to hold a meeting of the existing designated partners. The purpose of the meeting is to pass a resolution to add the new designated partner. The resolution must be passed by a majority of the existing designated partners.
- Submit Form 4 to the Companies Registrar:
After passing the resolution, the next step is to file Form 4 with the Registrar of Companies (ROC). Form 4 is an application for the addition of a designated partner. The form must be filed within 30 days from the date of passing the resolution. The form must be signed by all the existing designated partners and the new designated partner.
- Pay the prescribed fees:
Along with Form 4, you must also pay the prescribed fees. The fees vary depending on the capital contribution of the LLP.
- Obtain the Certificate of Incorporation:
After the ROC approves the application, you will receive a Certificate of Incorporation. The Certificate of Incorporation will have the name of the new designated partner and the date of their appointment.
Adding a designated partner in an LLP requires compliance with the LLP Act, 2008 and the rules made thereunder. It is important to check the eligibility of the designated partner, obtain a DSC and a DIN, hold a meeting of the existing designated partners, file Form 4 with the ROC, pay the prescribed fees, and obtain the Certificate of Incorporation. By following these mandatory things, you can add a designated partner to your LLP in a hassle-free manner.