Limited Liability Partnership (LLP) is a popular business structure in India that offers the advantages of both a partnership and a limited liability company. There must be at least two chosen partners for it to be considered a separate legal entity from its partners. In this blog, we will discuss the best way to add a designated partner in an LLP.
Step 1: Check the LLP Agreement
The LLP agreement is a legal document that governs the relationship between partners and the LLP. The agreement must be checked to ensure that it allows the addition of a designated partner. If the agreement does not allow for the addition of a designated partner, it must be amended before proceeding with the process.
Step 2: Obtain Digital Signature Certificate and Director Identification Number
The designated partner to be added must obtain a Digital Signature Certificate and a Director Identification Number . A DSC is an electronic signature that is used to sign documents online, while a DIN is a unique identification number assigned to every director by the Ministry of Corporate Affairs (MCA).
Step 3: Obtain Consent
The designated partner must obtain consent from all existing partners to be added to the LLP. The consent must be in writing and must be submitted along with the application for addition.
Step 4: File Form 4 with the Registrar of Companies (ROC)
Form 4 is the application for the addition of a designated partner in an LLP. The form must be filed with the Registrar of Companies (ROC) within 30 days of obtaining consent. The following documentation is required to be submitted with the application:
Consent of all partners
Copy of the DSC
Copy of the DIN
Address proof of the designated partner
Step 5: File Form 3 with the ROC
Once the Form 4 is approved, Form 3 must be filed with the ROC within 30 days. Form 3 is the intimation of the changes made in the LLP, and it must be accompanied by the following documents:
LLP Agreement (as amended)
Consent of all partners (as amended)
Copy of the DSC (as amended)
Copy of the DIN (as amended)
Address proof of the designated partner (as amended)
Step 6: Update LLP Agreement
The LLP agreement must be updated to reflect the addition of the designated partner. The amended agreement must be filed with the ROC within 30 days of the addition of the designated partner.
Adding a designated partner in an LLP is a simple process that involves obtaining consent, obtaining a DSC and DIN, filing Form 4 and Form 3 with the ROC, and updating the LLP agreement. It is important to check the LLP agreement before proceeding with the addition of a designated partner and to ensure that all documents are filed within the specified timeframes. By following these steps, the addition of a designated partner can be completed smoothly and efficiently.