Appoint/Remove A Designated Partner In LLP

In an LLP, it is mandatory to have at least two designated partners, with one of whom is a resident of India. The LLP deed specifies who the Designated Partners are, and they are responsible for managing the overall administration of the LLP and performing all necessary actions under the LLP Act. Designated Partners can be added or removed by passing a resolution and filing relevant forms with the Registrar of Companies.

To appoint a Designated Partner, you need to comply with specific requirements, including a valid Digital Signature Certificate (DSC), Designated Partner Identification Number (DPIN), and Consent Letter from the proposed Designated Partner. DPIN is similar to DIN for Directors of Companies, and it can be obtained by any person above the age of 18, including Indian nationals, Non-Resident Indians, and Foreign Nationals.

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• To begin the process of adding incoming partners, provide details of their occupation and educational qualifications.
• Scan photographs of all the Incoming Partners.
• Provide self-attested and color copies of PAN Cards for all the Incoming Partners.
• Provide self-attested and color copies of ID Proof for all the Incoming Partners, such as Driving License, Passport, or Voter ID.
• Provide details regarding the Capital Contribution of all the Incoming Partners.

• Minors below the age of 18 years are not eligible.
• Any person who has been adjudged insolvent within the preceding 5 years is not eligible.
• Any person who has defaulted in the payment to creditors within the preceding 5 years and has not made a composition with them is not eligible.
• Any person who has been convicted by a court for an offense involving moral turpitude and has been sentenced to not less than six months is not eligible.
• Any person involved in any act of fraud is not eligible.

• An LLP must have a minimum of two designated partners, who must be individuals and not a firm/association/company.
• The designated partners are responsible for the entire administration process in the LLP as per the LLP Act, and all actions in the LLP are vested in them.
• Adding partners to an LLP can be done by passing a resolution in the firm and filing the same in Form-4 along with relevant Forms (Form 3), with the Registrar of Companies.
• Indian nationals, non-resident Indians, and foreign nationals can be designated partners in an LLP firm in India.

• Removing a partner from an LLP requires filing relevant forms with the MCA, just like adding a partner.
• Resignation or expulsion of partner(s) from an LLP should be communicated to all the members of the company in writing, with prior notice.
• To effect the removal of a partner from an LLP, Form 4 must be filed within 30 days of the board resolution.

Rights:

• A partner in an LLP has the right to their capital contribution to the firm.
• Partners in an LLP also have the right to any accumulated profits after the deduction of accumulated losses.
   

Liabilities:

• If a designated partner in an LLP ceases to be a partner for any reason, they remain liable for any liabilities incurred during their tenure.
• Therefore, the liabilities of a partner in an LLP do not end when they leave the firm.

• A supplementary deed is a legal document created to add or modify the terms of an existing agreement or contract. It is also known as an addendum or an amendment.
• The purpose of a supplementary deed is to update or clarify certain aspects of the original agreement, without invalidating the entire contract.
• The deed can be prepared when partners are added or removed from an LLP.
• The supplementary deed has the same validity period as the original LLP agreement once it is drafted.
• The LLP agreement remains valid until or unless a change is made through the supplementary deed, such as the addition or removal of partners.