Introduction :
In India, a Limited Liability Partnership (LLP) is a popular business structure for small and medium-sized enterprises. An LLP must have at least two designated partners, who are responsible for the management and operations of the LLP. In this blog post, we will discuss the eligibility criteria for designated partners of an LLP.
Who can be a designated partner?
Resident of India: A designated partner of an LLP must be a resident of India. This means that the person must have stayed in India for at least 182 days in the previous calendar year.
Age: A designated partner must be at least 18 years old. There is no upper age limit for designated partners.
Capacity to Contract: A designated partner must have the capacity to contract. This means that they must be of sound mind and not disqualified from entering into contracts under any law.
No Disqualification: A person cannot be appointed as a designated partner if they have been declared bankrupt, convicted of an offence involving moral turpitude, or have been disqualified from being a director of a company.
Consent: A person can only be appointed as a designated partner with their consent. The consent should be given in writing and filed with the Registrar of Companies.
DIN: Every designated partner must have a Director Identification Number (DIN) issued by the Ministry of Corporate Affairs.
Designation: The person should be designated as a partner in the LLP agreement.
Liability: The designated partner should be liable for the actions of the LLP.
Involvement in Management: The designated partner should be actively involved in the management and operations of the LLP.
Disclosure of Interest: Every designated partner must disclose any interest or conflict of interest in any transaction or arrangement entered into by the LLP.
Educational Qualification: There is no specific educational qualification required to become a designated partner of an LLP. However, the designated partner should possess the necessary skills and experience to manage the operations of the LLP.
Conclusion:
In conclusion, the eligibility criteria for designated partners of an LLP are straightforward. A designated partner must be a resident of India, have the capacity to contract, be of sound mind, and not disqualified from entering into contracts under any law. They must also have a DIN, be actively involved in the management and operations of the LLP, and disclose any interest or conflict of interest in any transaction or arrangement entered into by the LLP. There is no specific educational qualification required to become a designated partner of an LLP, but the designated partner should possess the necessary skills and experience to manage the operations of the LLP. It is important for LLPs to ensure that their designated partners meet these eligibility criteria to avoid any legal complications in the future.