Designated Partner in LLP
Designated Partner in LLP: In LLP, Designated Partners (‘DP’)is a concept introduced by the Limited Liability Partnership Act, 2008.
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Who is Designated Partner?
Designated Partner mean any partner designated as such pursuant to Section 7 of the LLP Act. DP is a term used in the LLP who have been designated as such for doing the duties and discharging the liabilities of such partners under the LLP Act.
In all LLP, atleast one of the DP must be an Indian Resident.
Non-qualification of a Designated Partner?
The persons listed below do not qualify to be a designated partner:
- He has been found to be of unsound mind by a Court of competent jurisdiction and the finding is in force;
- He is an undischarged insolvent;
- He has applied to be adjudicated as an insolvent and his application is pending
- Minors below the age of 18 years.
However, the Central Government is empowered with the rights to annul the disqualification of a person.
Designated Partner Identification Number (DPIN)
All DP in an LLP are required to have a Designated Partner Identification Number (DPIN) or Director Identification Number (DIN).
Digital Signature Certificates (DSC)
Digital Signature Certificates (DSC) are the digital equivalent (that is electronic format) of physical or paper certificates. Few Examples of physical certificates are drivers’ licenses, passports or membership cards. Certificates serve as proof of identity of an individual for a certain purpose; for example, a driver’s license identifies someone who can legally drive in a particular country. Likewise, a digital certificate can be presented electronically to prove one’s identity, to access information or services on the Internet or to sign certain documents digitally.
Pre-requisites to become a designated partner
A proposed designated partner needs to obtain a valid DSC and DPIN.
Minimum and maximum number allowed
There must be minimum of 2 (two) partners for formation of an LLP. There is no limit to the maximum number of partner, however there must be 2 (two) Partners.
Liability of designated partner of an LLP
Liability of partners is limited except in case of unauthorized acts, fraud and negligence. But a partner is not personally liable for the wrongful acts or omission of any other partner. An obligation of LLP whether arising in contract or otherwise, is solely the obligation of the LLP. The liabilities of LLP are met out of the property of the LLP.
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