Process for Appointing a New Designated Partner in an LLP
An LLP (Limited Liability Partnership) is a popular form of business organization in India that offers the benefits of both a partnership firm and a private limited company. A designated partner is a crucial member of an LLP who is responsible for managing the day-to-day operations of the business and ensuring compliance with various legal and regulatory requirements. If a designated partner resigns or is removed from the LLP, it is important to appoint a new designated partner as soon as possible to ensure the smooth functioning of the business. Here is a step by step process for appointing a new designated partner in an LLP.
- Prepare a resolution: The first step in the appointment of a new designated partner is to prepare a resolution that outlines the reasons for the change and the qualifications of the new designated partner. This resolution should be approved by all the partners of the LLP.
- File Form DIR-12: Once the resolution has been approved, the LLP must file Form DIR-12 with the Registrar of Companies (RoC) within 30 days of the appointment of the new designated partner. This form must be accompanied by a digital signature certificate (DSC) of the designated partner, a copy of the resolution, and a fee of INR 500.
- Obtain PAN and DIN: The new designated partner must obtain a PAN (Permanent Account Number) and a DIN (Director Identification Number) before they can be appointed as a designated partner in an LLP.
- Update the LLP Agreement: The LLP agreement must be updated to reflect the appointment of the new designated partner. This includes changing the name and details of the new designated partner in the LLP agreement.
- File Form LLP-3: Once the LLP agreement has been updated, the LLP must file Form LLP-3 with the RoC to notify them of the change in the designated partner. This form must be accompanied by a fee of INR 100.
- Update the Register of Designated Partners: The LLP must also update its register of designated partners to reflect the appointment of the new designated partner.
- Obtain a DPIN: The new designated partner must also obtain a DPIN (Designated Partner Identification Number) from the RoC. This is a unique number that is assigned to designated partners for identification purposes.
- Update Bank Account: The LLP’s bank account must be updated to reflect the appointment of the new designated partner. This includes changing the authorized signatory on the bank account and updating the name and details of the new designated partner.
Conclusion,
The appointment of a new designated partner in an LLP is a relatively straightforward process, but it is important to follow the steps outlined above to ensure that the appointment is valid and in compliance with the law. The process typically takes 7-10 days, and it is important to keep accurate records and documentation throughout the process. By following these steps, the LLP can appoint a new designated partner and continue to operate smoothly, while ensuring compliance with all legal and regulatory requirements.