ADDITION OF DESIGNATED PARTNER

ADDITION OF DESIGNATED PARTNER

Designated Partners are generally who manage and stimulate all day to day affairs of the LLP under the company common seal. Limited Liability Partnership (LLP) must have two individual who will act as a Designated Partners and shoulder all responsibility of LLP. In order to add new Designated Partner to an existing LLP, consent of all existing partners usually required however, if the LLP agreement permits, one designated partner can also have power to admit new partner to LLP.

REASONS

EXPERTISE WITH ADDITIONAL CAPITAL

Normally, a partner is appointed either for need of capital or the expertise. With increase in capital, the borrowing power of the firm increases with loan opportunities. Admission of a partner not only benefits in form of capital but also leverages the skills and knowledge. The diversity of knowledge and goodwill base helps the business to grow far.

CHANGE IN TERMS OF PARTNERSHIP

It is an agreement between the partners, the terms can be changed mutually at any time. The change might impact the willingness of one or other partner. According to requirements and terms, need both, the addition or removal of a partner may arise. And consequently, the due process must be followed.

DOCUMENTS REQUIRED

MINIMUM REQUIREMENTS

Every LLP should have a minimum of 2 partners and out of them, 2 shall act as designated partners who work on behalf of the partners and participate in the day-to-day activities. Once appointed, a partner or a designated partner can be changed, removed or appointed.

 

PROCESS

DIGITAL SIGNATURE CERTIFICATE

Apply for Digital Signature Certificate.

DIN NUMBER

Apply fir DIN number-after the DSC, The director identification number of the director will be applied in the form DIR – along with the address proof and the identity proof of the applicant.

DESIGNATED PARTNER

Once the DIN is allotted to the designated partner, all the existing partners of the LLP will call a meeting and pass a resolution to add a designated partner in the partnership deed.

PARTNERSHIP DEED

A supplementary partnership deed will be drafted in which the new partner’s name will be added.

INCOMING PARTNER

Then the constant of the incoming partner will be taken in writing.

FORM - 4

After these documents are prepared, Form – 4 of LLP will be filed within 30 days of the appointment.

FORM - 3

After filing this form, FORM – 3 will be filed, along with the supplementary and the original partnership deed within 30 days of appointment.

MINISTRY OF CORPORATE AFFAIRS

After the filing of all these forms, the name of the designated partner will be added and will be seen on the site if the ministry of corporate affairs.

FORM - 3 AND FORM - 4

If form – 3 and Form – 4 are filed within 30 days there is an additional fee on each form of Rs 100/- per day.