Limited Liability Partnerships (LLPs) are a popular business structure among entrepreneurs due to their flexible and convenient features. An LLP is a separate legal entity that is governed by the Limited Liability Partnership Act, 2008. The designated partners are responsible for the management and compliance of the LLP. However, if you want to add a new designated partner to your LLP, there are certain procedures that you need to follow. In this blog, we will discuss the procedure to add a designated partner in an LLP.
Step 1: A Digital Signature Certificate (DSC) can be collected.
The first step in adding a designated partner in an LLP is to obtain a Digital Signature Certificate (DSC). The designated partners must have a DSC to file e-forms with the Ministry of Corporate Affairs (MCA). A DSC is a secure digital key that is issued by a licensed Certifying Authority (CA) and used to sign electronic documents.
Step 2: A Director Identification Number (DIN) can be collected.
The next step is to obtain a Director Identification Number (DIN) for the new designated partner. The MCA issues a DIN—a special identification number—to people who want to be directors of corporations or LLPs. The new designated partner must apply for a DIN by filling in the relevant e-form and submitting it to the MCA.
Step 3: Hold a Meeting of the Existing Designated Partners
The existing designated partners must hold a meeting to approve the appointment of the new designated partner. The meeting must be conducted as per the LLP agreement and the provisions of the Limited Liability Partnership Act, 2008. The minutes of the meeting must be recorded and signed by all the designated partners.
Step 4: The Registrar of Companies using Form 4
Once the existing designated partners have approved the appointment of the new designated partner, the LLP must file Form 4 with the Registrar of Companies (ROC). Form 4 is the application for the appointment of a designated partner in an LLP. The form must be filed within 30 days of the appointment of the new designated partner.
Step 5: Update LLP Agreement
After the appointment of the new designated partner, the LLP agreement must be updated to reflect the change. The LLP agreement is a legal document that outlines the rights and duties of the designated partners and the LLP. The LLP agreement must be updated as per the changes in the designation of the partners.
Step 6: Update PAN and TAN Details
The LLP must update the PAN and TAN details with the income tax department after the appointment of the new designated partner. The PAN and TAN details must be updated within 15 days of the appointment of the new designated partner.
Adding a designated partner to an LLP is a relatively simple and straightforward process. The designated partners must obtain a DSC and DIN, hold a meeting to approve the appointment, file Form 4 with the ROC, update the LLP agreement, and update the PAN and TAN details. It is important to follow the procedure as per the provisions of the Limited Liability Partnership Act, 2008, and the LLP agreement. By following the procedure correctly, the LLP can ensure compliance with the law and avoid any legal hassles in the future.