Table of Contents
Table of Contents
What Is The Meaning Of A Resident Designated Partner?
Resident Designated Partner plays an important role when setting up & running a Limited Liability Partnership in India.
Pankaj Verma
What is the Meaning of a Resident Designated Partner?
Resident Designated Partner plays an important role when setting up & running a Limited Liability Partnership in India. It means a designated partner who is a resident of India & meets a key rule under the Limited Liability Partnership Act 2008. The presence of a resident designated partner makes sure that the LLP follows the basic legal needs.
Today, in this article we will understand about Resident Designated Partner on Filesure.
What is a Resident Designated Partner?
When forming an LLP in India the law needs the LLP to have at least two designated partners & one must be a resident of India. It means a designated partner who stays in India for a fixed time & is recognized for legal filings.
The law under Section 7 of the LLP Act says every LLP must have at least two designated partners who are individuals & one must be a resident in India. The designated partner is someone chosen as such under the LLP Agreement & the Act. The Resident Designated Partner is simply a designated partner who is a resident in India.
Who Qualifies as a Resident Designated Partner?
Eligibility Criteria:
The person must be an individual. The person must be 18 years or older. The person must not be an insolvent or convicted under certain laws. The person must have stayed in India for the required number of days in the previous year.
Resident of India:
It means the person must have stayed in India for at least 120 days or 182 days in the last year as per rules. The idea is that the person should live in India long enough to be called a resident.
Appointment & Nomination Aspects:
At the time of registration, the LLP must share the names of its designated partners including the resident designated partner. The LLP must fill the vacancy quickly if the resident designated partner leaves or stops staying in India. The failure to do this may make all partners responsible for compliance work.
What are the Roles & Responsibilities of a Resident Designated Partner?
The resident designated partner has the same duties as other designated partners but also ensures compliance from within India.
Key Duties:
The person makes sure the LLP files annual returns & other legal forms
The person signs the Statement of Account & Statement of Solvency for the LLP.
The person helps with any inspection or inquiry from authorities.
The person ensures the LLP follows all laws like tax & labor.
The person maintains proper records & makes sure the LLP Agreement is followed.
Partner vs Designated Partner vs Resident Designated Partner
Feature | Partner | Designated Partner | Resident Designated Partner |
Role in LLP | A member of LLP | Manages & handles legal work | Same but must be a resident in India |
Legal Requirement | Only general role | Mandatory two partners | One must be a resident |
Eligibility | Any person or company | Must be an individual | Must be an Indian resident |
Identification | Not needed | Needs DPIN or DIN | Same rule |
Main Responsibility | Shares profits & risks | Handles legal & filing duties | Fulfills same duties with residency rule |
Failure to Appoint | No direct penalty | LLP can face penalty | LLP can become non-compliant |
Conclusion
Resident Designated Partner is a key part of an LLP in India. It ensures that at least one partner stays in India & takes care of legal duties. We can say this rule keeps the LLP connected to Indian laws & makes it accountable.
Also Read: Difference Between MOA vs AOA