Adding a Designated Partner

Here’s What You’ll Need

Once you have the below documents ready, submit them digitally to add a new designated partner for your LLP. Zolvit uses the best-in-industry security protocols to ensure your documents are always secure.

• DSC
• DIN
• Address proof
• Copy of PAN card
• Supplementary partnership agreement

Did you know?

Partner of an LLP is ineligible to become or remain as Designated Partner for five years if he or she fails to file Financial Statements for any three consecutive fiscal years: MCA

The Ministry of Corporate Affairs (MCA) notified the LLP (Second Amendment) Rules, 2022, to amend the existing LLP Rules, 2009. Now at the time of incorporation, five partners can be appointed as designated partners.

An Overview on Adding a Designated Partner

In the case of a Limited Liability Partnership (LLP), at least two partners must serve as designated partners. These partners must be assigned a Designated Partner Identification Number and have their names included in the LLP partner agreement. The designated partner can be replaced or withdrawn. When compared to other forms of business registrations, adding a designated partner to an LLP is simpler to implement and requires less compliances.

Benefits of Online Payroll Management

• Authorised Signatory

  An LLP's Designated Partner is authorized to sign the Statement of Account and Solvency, form 8, which is a declaration.

• Penalty

  If this is not done, each Designated Partner will face a fine in excess of $10,000.

• Filing Returns

  If there is a necessity, the Designated Partner may file returns of documents.

• Inspection

  The designated partner must assist the authority by providing essential documents, information, and signing any requirements, as well as cooperating with the inspector during an inquiry or inspection.

• Reimbursement

  When an inspector conducts an inquiry, a Designated Partner is liable for reimbursing the expenditures.

Checklist for Adding a Designated Partner

• The applicant must be at least 18 years old.
• He must have a unique identification number (For instance, Aadhaar Card)
• Each LLP must have at least two designated partners
• The individual must be of sound mind
• The individual should not have committed fraud.
• At least one designated partner must be a resident Indian national.
• The proposed designated partner should not have declared bankruptcy in the previous five years.
• The other designated partners must provide a consent letter
• The individual must also have good relations with creditors.