LLP FAQs: Partners, Designated Roles & Registration

In Part 1,  LLP FAQs: Structure, Benefits & Legal Basics, we broke down what an LLP is and why it works so well for modern businesses. Now it’s time to get into the real-world stuff, the people who power your LLP and the documents that make it legit.

Who counts as a partner? What exactly does a designated partner do? Can a company join the party? And how do you go from a great idea to a legally registered LLP?

Here’s the thing: setting up an LLP isn’t rocket science, but you do need to get the basics right. Whether you’re registering with friends, representing a company, or helping a client, knowing who does what (and what form to file) saves you time, money, and stress.

So here’s the thing: setting up an LLP isn’t rocket science, but you do need to get the fundamentals right. It doesn’t matter if you are registering with friends or representing a company or just helping out a client; knowing who does what (and what form to submit) saves you time, money, and stress.

And if you’re planning your own LLP registration, having clarity on partner roles will help you start strong and stay compliant.

Let’s get into it.

Q1. What are the minimum and maximum numbers of partners allowed in an LLP?

At least two partners are required to create an LLP. No limit is imposed on the number of partners that can be maximally accommodated. This offers companies maximum freedom to increase the number of their partners according to their requirements without any concern regarding legal restrictions.

Q2. Can a body corporate become a partner in an LLP?

Yes, they can. The LLP structure allows corporate bodies and individuals to become partners, enabling more flexible and broader business arrangements.

Learn more about it in this guide: Can a body corporate be a partner in an LLP?

Q3. Who is eligible to become a partner in an LLP?

Any person or body corporate can be an LLP partner. A person is disqualified if:

(a) The court has pronounced them to be of unsound mind, and the aforesaid order is correct.

(b) They are still undischarged insolvent; or

(c) They have made an application for insolvency, which is under consideration.

These conditions ensure that only skilled and reliable persons are allowed to act as partners.

Q4. What are the requirements regarding Designated Partners in an LLP?

A minimum of two Designated Partners is required in every Limited Liability Partnership. In addition to being responsible for conducting affairs of the LLP, designated partners have privileged status and are also responsible for ensuring all statutory and legal compliance is timely maintained.

Q5. Who can be appointed as a Designated Partner?

Designated Partners can only be individuals, and at least one of them should be an Indian resident. In case body corporates are partners of an LLP then their nominees (again, who should be individuals) can also be designated partners. This ensures that there will always be an individual accountable for the LLP’s management.

Q6. Is there a requirement for the number of resident Designated Partners to be higher than those based outside India?

There is no such restriction on the number of Designated Partners based out of India as long as you have a resident Designated Partner in India. This provides the flexibility for Indian LLPs to expand beyond borders without any unnecessary restrictions.

Q7. Does a Designated Partner need any special identification number? What other criteria for eligibility exist?

Yes. Every designated partner must be provided with a special number which is called Designated Partner Identification Number (DPIN). This DPIN works almost like a DIN i.e., a Director Identification Number for directors of companies.

Further, certain eligibility conditions may be provided under the LLP provisions to ensure that only the right people are appointed to this important position.

Q8. How are the rights and obligations of partners in the LLP defined?

The rights and obligations of the partners with respect to each other and with respect to the LLP are set out in the LLP Agreement. It sets out how the LLP will operate, how decisions will be taken, and the sharing of profits and liabilities among the partners. Well, the LLP Agreement can be considered as a rulebook for partners of LLP.

Q9. Is it compulsory for every LLP to have an LLP Agreement?

Though an LLP Agreement is not compulsory per se, it is highly advisable.  If the partners fail to have their own LLP Agreement, Schedule I of the LLP Act will serve as the default. However, to the extent the partners desire to avoid the default provisions or to make their unique LLP Agreement, they will be required to prepare and file an LLP Agreement specifying such exceptions.

Q10. What is the process for registering an LLP in India?

To register an LLP, here’s the simplest process. The partners need to file an incorporation document with the Registrar of Companies (ROC). This document should contain a minimum of two partners names, the name of the LLP and the registered office address. Once the incorporation takes place, you need to file for the LLP Agreement as per the LLP rules, 2009. If there is any change in the LLP agreement, you must file Form 3. If there is any change in partner details you must file Form 4.

For a comprehensive guide on ROC registration, see this step-by-step guide.

Q11. Can foreign nationals or companies register an LLP in India?

In fact, foreign nationals, foreign LLPs, and foreign companies can establish LLPs in India. They must have at least one Designated Partner residing in India. Additionally, the LLP is required to adhere to all applicable FEMA laws and RBI regulations.

Q12. What are the naming guidelines for LLPs under the Act?

Every Limited Liability Partnership (LLP) must end its name using the words “Limited Liability Partnership” or “LLP.” Additionally, the name should be unique and should not be objectionable to the Central Government. Naming rules, rules of approval of names, and rectification in case of duplication are controlled by prescribed rules of naming.

Q13. How long can an LLP name be reserved once approved?

After approval by the Registrar (through Form 1), the name is held for three months. For foreign companies or LLPs seeking to conduct business in India, the name can be reserved for a period of three years and can also be renewed further by applying through Form 25.

Q14. Can an LLP specify an alternative address for official communication?

Yes, besides its registered office, an LLP can also furnish another address to receive communications from the Registrar. The Rules of the LLP mandate that this should be notified in the prescribed manner. Documents sent to this alternate address will be deemed to be duly served.

Setting Legal Groundwork for Sustainable Growth

Getting the personnel and documentation in place is what converts an idea into a successful LLP. Whether that means having the right qualified Designated Partner, submitting the correct forms, or organizing your agreement to suit your business requirements, every step constructs the ground of a legitimate, compliant, and growing entity.

The good news? LLPs are built for flexibility. You can start small, grow smart, and keep control while staying legally protected.

If you’d rather not navigate the forms and filings yourself, LegalWiz.in makes the process easy from partner setup to registration and beyond.

In the next blog in this series, LLP FAQs: Exit Strategies, Conversions & Legal Enforcement,  we are covering what happens when your LLP evolves, whether that means changing partners, merging, converting, or closing things down the right way. If you’re thinking long-term, don’t miss it.

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