Designated Partners in LLP

Designated Partners

1) Every Limited Liability Partnership has at least two designated partners who are individuals and at least one of them shall be a resident in India:

Provided that in case of a Limited Liability Partnership in which all partners are bodies corporate or in which one or more partners are individuals and bodies corporate, at least two individuals who are partners of such Limited Liability Partnership or nominees of such bodies corporate act as designated partners [Section – 7(1)].

A resident in India means a person who has stayed in India for a period of not less than 182 days during the immediately preceding one year. Limited Liability Partnership and every partner shall be punishable with a fine of not less than Rs. 10 thousand and up to Rs. 5 lakhs for contravention of this provision.


2) The designated partners may be named at the time of incorporation of Limited Liability Partnership or if they are changed from time to time, then changed partners shall be designated partners. Any designated partner may so become or may cease to be such partner in accordance with Limited Liability Partnership agreement.


3) A designated partner has to give his prior consent before becoming such partner Section 7 (3). His consent shall be filed by Limited Liability Partnership within 30 days of such appointment with the Registrar as per the prescribed form [Section 7(4)].


4) Every designated partner of Limited Liability Partnership has to obtain a Designated Partner Identification Number (DPIN) from the Central Government (like Directors according to Sec 266 A to 266 G of Companies Act 1956). (Sec 7)


Liabilities of a Designated Partner

A designated partner is –

(a) responsible for doing of all acts, matters and things as are required to be done by Limited Liability Partnership to comply the Act including filing of any return, statement and the like report pursuant to the provisions of this Act and as may be specified in Limited Liability Partnership Agreement and

(b) for any contravention of this provision liable to all penalties imposed on Limited Liability Partnership by law. (Sec 8)


Change in Designated Partners

Any vacancy arising for any reason must be filled within 30 days of that vacancy. Punishment for not giving consent by designated partner or no compliance of any provision of the Act or not filling the vacancy, a fine of not less than Rs. 10 thousand, which may be extend up to Rs. One lakh rupee shall be imposed on Limited Liability Partnership and on its every partner (Sec 9).

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