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The concept of LLPs has been introduced by Limited Liability Partnership Act, 2008. Unlike in normal partnership, it allows the partners to have limited liability to the extent of their shares in the firm. Basically, it is a blend form of a company and a general partnership but not the same level of rigidness or compliance as in company. LLPs are required to have a minimum of two Designated Partners at a time.
Designated Partner Identification Number (DPIN) is a registration number allotted by Ministry of Corporate Affairs (Government of India) to any person who wishes to be appointed as a Designated Partners of a Limited Liability Partnership (LLP). In other words, every Designated Partners in an LLP is assigned
Designated Partner Identification Number (DPIN). DPIN is an evidence of legal validity to a Designated Partner. Designated Partner Identification Number (DPIN) is similar to Director Identification Number (DIN) and may be used interchangeably.
Obtaining consent of other existing partners and Class 2 digital signature are essential requirements for becoming Designated Partner.
Following documents must be submitted for obtaining DPIN.
Attested/Certified copy of:
In case applicant is a nominee of the body corporate, copy of his/her authorisation on the letter-head of body corporate must be attached. Details such as the name and address of the individual must be specified. If the applicant is a foreign national, copy of the valid passport must be attached.
The following authorities have the power of attestation/certification:
While attesting or certifying, the authority must mention his/her name of the attesting authority in capital, registration number, name of the ministry/department where the Gazetted Officer is employed and seal/stamp. The translation certificate needs to be attached if the language of proof is other than Hindi/English.
Ministry of Corporate Affairs (MCA) - Government of India) assigns DPIN automatically to the applicant at the time of submission of application for designated partner identification number.
But in following cases, it may send it back for resubmission:
Designated Partner is a title that must be held by at least two persons in Limited Liability Partnership firm. This concept was introduced by the Limited Liability Partnership Act, 2008. At the time of registration of LLP, the incorporation document must specify the name of Designated Partners. The LLP Partnership Deed may state for scrutiny or rotation of the role of Designated Partner i.e. to ensure the equal opportunity of participation to every member. Designated Partner in LLP is similar to the status of director of a Company and in fact, enjoys more rights and privileges at certain extent.
At the time of registration of LLP, two or more person(s) must be identified as a Designated Partners and obtain DPIN. The LLP must have at least two designated partners at a time and therefore in case of exit by any designated partner, the vacancy must be filled within a period of 30 days, else all partners in an LLP would be deemed as Designated Partners.
All natural living persons can be a designated partner. In an LLP, two or more members must be designated partners, among them at least one must be an Indian Resident. Section 7 states that for the purposes of the LLP Act, the term ‘resident in India’ means “a person who has stayed in India for a period of not less than one hundred and eighty-two days during the immediately preceding one year.”
Rule 9(1) of the Limited Liability Partnership Rules provides conditions in supplement to the Section 7 of the LLP Act. The below mentioned categories of persons are not eligible to become a designated partner:
However, the Central Government may by notification modify or annul the disqualification of a person.
Relevant Forms (LLP):
The government fee for filing of consent and appointment of Designated Partner depends upon the contribution limit of LLP:
up to Rs 1,00,000
Rs 1,00,000 - Rs 5,00,000
5,00,001 - Rs 10,00,000
Above Rs 10,00,000
The prime duty of designated Partner is required to file documents, returns, accounting statements etc. Listing all, a designated partner has the following functions:
Penalty in case LLP’s fails to maintain a minimum of two Designated Partner
It is mandatory for every LLPs to have at least two Designated Partners at a time. In case, LLP’s fails to comply with the same could attract penalty amounting to Rs 10,000 or more. Similarly if vacancy arises due to the exit of a Designated Partner and the same is not being filled i.e. the minimum requirement of 2 Designated Partner has not been fulfilled within a period of 30 days, the same penalty will be levied on the LLP.
DIN is an 8-digit unique Identification Number allotted by the Ministry of Corporate Affairs (Government of India) to an individual who intends to become or is appointed as a director of a company, upon making an application in form DIR-3 by virtue of Section 153 & 154 of the Companies Act, 2013. The concept of a Director Identification Number (DIN) was introduced for the first time in 2006 via Companies (Amendment) Act, 2006.
Designated Partners in LLPs are accountable for regulatory and legal compliance. Every Designated Partner must obtain a “Designated Partner’s Identification Number” (DPIN) which is analogous to the concept of “Director’s Identification Number” (DIN) required in case of directors of companies.
Director Identification number or DIN can be used interchangeably with Designated Partner Identification Number or DPIN and vice versa. In case of a person holding both DIN as well as DPIN, then DIN of that person will supersede DPIN at the time of his appointment as a designated partner of an LLP.
Any person who wants to become a director in an existing company, is required to make an application in eForm DIR-3. In case of application for allotment of DINs to the proposed first Directors in respect of new companies, the same must be made in SPICe form only.
Applicant may go through the instruction kit for filing eform DIR-3. Following procedures must be followed:
Note - Every user is required to register on the MCA21 Portal to obtain Login ID. Applicant must Login to the MCA21 portal and then click on 'eForm upload' link available under the 'eForms' tab for uploading the eForm DIR- 3. eForm DIR-3 will be automatically processed after the DIN application fee is paid.
In case Form DIR-3 details have not been identified as potential duplicate, Approved DIN shall be generated automatically but if the details have been identified as potential duplicate, a provisional DIN shall be generated. In case of potential duplicate, the same gets routed to DIN cell for back office processing and when it is approved, provisional DIN becomes the approved DIN of the applicant for future use.
Step 1: Visit the website of Ministry Of Corporate Affairs - Government of India
Step 2: Go to the portal of MCA Services and then click on Enquire DIN Status.
Some Important links