{"id":13705,"date":"2020-07-27T12:47:24","date_gmt":"2020-07-27T07:17:24","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=13705"},"modified":"2020-07-27T12:49:14","modified_gmt":"2020-07-27T07:19:14","slug":"appointment-procedure-of-designated-partner-in-llp","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/appointment-procedure-of-designated-partner-in-llp\/","title":{"rendered":"Appointment procedure of Designated Partner in LLP"},"content":{"rendered":"\n<p class=\"has-drop-cap\">A Limited Liability Partnership (LLP) works under the strict provision of Limited Liability Partnership Act, 2008. Unlike other business models, LLP discourages stringent compliances. It is the only reason why the LLP-based business model is gaining a lot of popularity in the business arena.&nbsp;&nbsp; <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"611\" height=\"355\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-127.png\" alt=\"designated partner in LLP\" class=\"wp-image-13706\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-127.png 611w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-127-300x174.png 300w\" sizes=\"(max-width: 611px) 100vw, 611px\" \/><\/figure><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/appointment-procedure-of-designated-partner-in-llp\/#Advantages_of_LLP\" >Advantages of LLP<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/appointment-procedure-of-designated-partner-in-llp\/#Eligibility_for_Designated_Partner_in_LLP\" >Eligibility for Designated Partner in LLP<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/appointment-procedure-of-designated-partner-in-llp\/#Entities_that_cannot_serve_as_a_designated_partner_in_LLP\" >Entities that cannot serve as a designated partner in LLP<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/appointment-procedure-of-designated-partner-in-llp\/#Procedure_for_the_appointment_of_a_designated_partner_in_LLP\" >Procedure for the appointment of a designated partner in LLP<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/appointment-procedure-of-designated-partner-in-llp\/#What_is_Digital_Signature_Certificates\" >What is Digital Signature Certificates?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/appointment-procedure-of-designated-partner-in-llp\/#What_is_the_Director_Identification_number\" >What is the Director Identification number?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/appointment-procedure-of-designated-partner-in-llp\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages_of_LLP\"><\/span>Advantages of LLP<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The personal liabilities are\nlimited for each of the LLP&#8217;s partners.<\/li><li>The company&#8217;s directors are\naccountable for making the majority of the decisions. <\/li><li>There is no predetermined\ntenure of working in LLP. Every member has a right to leave the company\nwhenever they want. <\/li><li>Provision under LLP doesn&#8217;t\nimpose any restriction on account of joining or transferring on the\nmembers.&nbsp; <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_for_Designated_Partner_in_LLP\"><\/span>Eligibility for Designated Partner in LLP<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Only individuals have the right to become designated partners in the LLP-based company&#8217;s model. The private organization, firms, or other active companies cannot become designated partners in the LLP.<\/li><li>The unique identification number is a must-have requirement for an applicant. <\/li><li>Partnership in LLP. <\/li><li>A minimum of two designated partners is required to set up an LLP-based company model. <\/li><li>There is no threshold limit in the LLP on account of the number of partners.\u00a0 <\/li><li>At least one designated partner should be an Indian national. <\/li><li>The consent letter must furnish by the Designated Partners. <\/li><li>The minimum age criteria for an individual joining LLP as a partner in 18 years. <\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/modified-llp-settlement-scheme-2020\/\">Modified LLP Settlement Scheme, 2020<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Entities_that_cannot_serve_as_a_designated_partner_in_LLP\"><\/span>Entities that cannot serve as a designated partner in LLP<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Bankrupt personal cannot apply\nfor this designation. <\/li><li>Individuals tagged as a payment\ndefaulter by creditors such as private financial lenders<\/li><li>Individuals having a long\nhistory of fraudulent activities cannot serve a designated partner in LLP<\/li><li>Minors<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure_for_the_appointment_of_a_designated_partner_in_LLP\"><\/span>Procedure for the appointment of a designated partner in LLP<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are few procedure to appoint a designated partner in LLP. Those are as follows:-<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Apply for Digital Signature Certificate<\/h3>\n\n\n\n<p>DSC is mandatory when it comes to the appointment of a designated\npartner. The applicant needs to furnish the following document to obtain DSC. <\/p>\n\n\n\n<ul><li>PAN Card of the proposed\npartner. <\/li><li>Aadhaar Card of the proposed\npartner.<\/li><li>Photo of the proposed partner.<\/li><li>Email Id of the proposed\npartner.<\/li><li>Phone number<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Apply for DIN Number<\/h3>\n\n\n\n<p>After fulfilling the above requirement, the DIN will be applied in\nthe Form DIR, available on the MCA&#8217;s website. The form will be submitted along\nwith identity and address proof of the applicant. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Passing a resolution in a Board meeting <\/h3>\n\n\n\n<p>Once the concerned authority allotted a DIN to the designated\npartner, the LLP&#8217;s partners will conduct a meeting to authenticate the\nrecruitment of a designated partner in the partnership agreement. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Inclusion of partner name in agreement <\/h3>\n\n\n\n<p>Next, the LLP partner drafted a supplementary partnership deed to\nincorporate the name of the proposed partner. The applicant will furnish the\nconsent Letter to the LLP regarding its joining. As soon as the documentation\nmentioned above is prepared, the partner will file Form-4 within thirty days of\nthe appointment. <\/p>\n\n\n\n<p>Next, the Form-3 will be furnished to the concerned authority along\nwith partnership deed within the thirty days of the appointment. After\nfurnishing the forms mentioned above, the MCA will grant permission to the LLP\nto add the proposed partner. The applicant needs to visit the MCA website to\nsee whether the name of the designated partner is appended or not. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Digital_Signature_Certificates\"><\/span>What is Digital Signature Certificates? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Digital Signature is nothing but a digital key that is supposed to authenticate the holders&#8217; identity. The issuing of DSC is in the hand of certifying authority (CA). Such authentication is carried out by the electronic means as per Section 3 of <strong><em>The Information Technology Act, 2000<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Information_Technology_Act,_2000\"><strong><em>[1]<\/em><\/strong><\/a><\/sup>.<\/p>\n\n\n\n<p>Moreover, the DSC contains essential details such as the APNIC\naccount name and an email address. DSC excels on public key infrastructure and\na private key encrypts it. Thus, it can be treated as an authentic medium that\nestablishes the credential of the concerned entity during the online business.\nDSC is a legal way of authorizing electronic documents on the online platform.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Director_Identification_number\"><\/span>What is the Director Identification number? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Director Identification Number or DIN (MCA) is an encrypted 8-digit\nidentification number allotted to the individual seeking position of a Director\nin a company. The central government is the only legal body that allots the DIN\nto the individual. For the time being, DIN doesn&#8217;t come with an expiration\ndate; thus, it offers lifetime validity to its users. <\/p>\n\n\n\n<p>DIN not only acts as an identity for an individual, but it also\nhelps the government keep the database of an existing director. The DIN is\nsupposed to mention underneath the Director&#8217;s signatures. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Important points to remember<\/h3>\n\n\n\n<ul><li>A person with a fraudulent\nbackground cannot apply for a partner in LLP<\/li><li>The inclusion of minor\nindividual is prohibited in LLP<\/li><li>Digital Signature Certificate\nand Director Identification numbers are mandatory for a person seeking\npartnership in LLP.&nbsp; <\/li><li>A board meeting also plays a\nvital role in the appointment of a designated partner in LLP. <\/li><li>A minimum of two designated\npartners is required to set up an LLP-based company model.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For the time being, LLP is one of the trending business models in\nthe current time. With less compliance on board, LLP, as a firm, thrives more\nseamlessly than any other business model. With that said, it also offers the\nprovision for adding a partner through a predetermined legal procedure. Adding\na partner in LLP is a rather a simple task provided the applicant follows the\nprocess carefully and provides document accordingly. <\/p>\n\n\n\n<p>If you need some assistance in this context, we are open to help. Go ahead and use our comment section to drop the queries. We will make sure that your question will be answered in no time. Our <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz<\/strong><\/a> group be at your service if you need technical advice on <a href=\"https:\/\/corpbiz.io\/llp-registration\"><strong>LLP registration<\/strong><\/a> or compliance. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/llp-settlement-scheme-2020-for-defaulting-llps\/\">MCA Introduced LLP Settlement Scheme, 2020 for Defaulting LLPs<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Limited Liability Partnership (LLP) works under the strict provision of Limited Liability Partnership Act, 2008. Unlike other business models, LLP discourages stringent compliances. It is the only reason why the LLP-based business model is gaining a lot of popularity in the business arena.&nbsp;&nbsp; Advantages of LLP The personal liabilities are limited for each of [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":13708,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[155],"tags":[802],"acf":{"service_id":"3"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":8718,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/13705"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=13705"}],"version-history":[{"count":13,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/13705\/revisions"}],"predecessor-version":[{"id":13721,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/13705\/revisions\/13721"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/13708"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=13705"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=13705"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=13705"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}