Overview of Adding a Designated Partner

Immediately after the registration of LLP is done online and it has been brought to the notice that the LLP needs a new partner, then the original partners have to give their written consent by filing a form 3 & form 4 attached with the required documents. The need of adding a new partner for LLP can be numerous; some of the reasons why there is a need to add a designated partner/s are.

• Investing in the LLP
• Retirement of an existing partner
• Modification in the role and responsibilities of LLP
• Mutual consent of the partners
• For the purpose of expansion of LLP
• Family-run LLP business

An LLP that is incorporated under the LLP Act 2008, a person unless others disqualify and a company incorporated in India are the ones who can become the partner at the LLP. There is no upper or maximum limit to the number of partners who can join; there is no regulation on entering and leaving the LLP entity as well. Therefore, it is possible to easily transfer the ownership of LLP from one partner to another. However, for an LLP, it is obligatory to appoint at least two or more designated partners; failing these appointments will result in giving a penalty of Rs 10,000 or more. Furthermore, if the position of a designated partner is vacant due to their exit and if it has not been addressed within 30 days, then it will also attract a hefty penalty to the LLP.

Our highly qualified professionals at Taxrepair provide the best services for adding a designated partner for your LLP business. We seamlessly execute all the legal frameworks required for adding a designated partner, thereby easing the work of the original partners.

Documents required for Adding a Designated Partner

• Attested copy of PAN Card of the designated partner
• Attested copy of Aadhar Card of the designated partner
• Passport Photograph of the designated partner
• Email id of the designated partner
• Contact Number of the designated partner
• Digital Signature Certificate (DSC)
• Director Identification Number (DIN)
• Supplementary Partnership Deed where the designated partner’s name is added.
• Original LLP deed (submitted within 30 days of the appointment of the designated partner)
• Filing of Form 3 & Form 4
• Passport of the designated partner, if the partner is of foreign nationality)

Roles and Responsibilities of Designated Partner

• A Designated Partner is responsible for signing all the e-forms with the Registrar of Companies.
• The Designated Partner has to produce proper documents in front of the Inspector whenever required.
• A Designated Partner has to file for their annual returns with the Registrar of Companies within a prescribed period of 60 days from the date of the closure of the financial year. If not filed, a fine of Rs 10000 and more will be levied.
• A Designated Partner is accountable to reimburse expenses that occurred on an investigation conducted by the Inspector.
• The Designated Partner is also responsible for all compliance under the applicable laws like the GST, Income Tax, LLP Act and many such laws.
• Designated Partner is also responsible for maintaining proper books of accounts, auditing LLP accounts, and filing the annual statements of books.
• The Designated Partner is authorized to affix their signature on the Statement of Account and Solvency, the filling prepared by the LLP.

Timelines of Adding a Designated Partner

Taxrepair is one of the leading firms in the country providing all the legal consultancy and services to clients. We have the expertise in adding the designated partner at the LLP on a timely basis. The addition of the designated partner is subject to the time available to the concerned government official as well as on their approvals and the reverts on the same.

Contact our team of highly qualified experts to know more about the formalities of adding a designated partner at an LLP.