Designated Partner in LLP – Full Explanation

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Let’s crack a super important topic under the Limited Liability Partnership Act, 2008 – the concept of the Designated Partner, or as we casually call it in this explanation – DP.

Now I know you’ve heard the word “partner” in a lot of places – movies, businesses, even “dost mere partner jaisa hai” – but in the LLP world, it has a very specific meaning. So sit tight, thoda dimag lagao, aur aage chalo mere saath!

Table of Contents

Quick Summary Table

Topic	Rule
Minimum Designated Partners	2 Individuals
Who Can Be a DP	Only Individuals
Can Companies Be Partners?	Yes
Can Companies Be DPs?	No, but can appoint Nominee
Resident DP Requirement	1 DP must stay ≥ 120 days in India
Relevant Section	Section 7 – LLP Act, 2008

Who is a Designated Partner (DP)?

Dekho bhai, in an LLP, not every partner is a DP, but every DP must be a partner.

So what’s the job of a DP?

A Designated Partner is someone who is responsible for complying with all legal formalities, handling filings with the ROC, and basically, managing the LLP.

In short:

Partner = Paisa lagane wala
Designated Partner = Dhandha chalane wala + Legal responsibilities lene wala

Same as in a company, you have shareholders (investors) and directors (managers). Similarly, in LLPs, the DPs are like the directors.

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DP vs Partner – What’s the Difference?

A partner is someone who contributes capital. He might not even care who’s running the show.

A DP is someone who is running the show, managing day-to-day operations ,and handling all compliance work.

Partner = “Main paisa laga raha hoon, bas.”
DP = “Main file bhi ROC mein daal raha hoon, GST bhi dekh raha hoon, notice bhi main hi bhugtu.”

Got the vibe? Let’s move to the rules now.

Minimum Requirement for Designated Partners

Here comes the law part:

Every LLP must have at least TWO Designated Partners, and both must be INDIVIDUALS.

That means:

You need 2 DPs minimum to start an LLP.
Both should be living, breathing individuals — Google, ya or koin company DP nahi ban sakte!

Ab bhai yeh toh law hai. LLP ka koi ek partner body corporate ho sakta hai, but DP banne ke liye individual hona zaroori hai.

Let’s Take an Example: Mister Y & Mister X

Time for a practical story. Picture this:

Mister Y and Mister X want to start an LLP – let’s call it LLP 1.

Mister Y invests money
Mister X will handle the operations

So in this case:

Mister Y= Partner
Mister X= Designated Partner (DP)

But ab dono decide karte hain – “Bhai, hum dono paisa bhi lagayenge, aur business bhi chalayege.”

Toh kya ho gaye dono?

Dono ban gaye – Partner + DP

Fair enough? Moving on.

Can a Company be a Partner in LLP?

Absolutely yes! LLP ka partner koi company bhi ho sakti hai, known as a body corporate.

But remember one golden line:

A body corporate cannot be a Designated Partner.

Bhai, fridge thodi na DP banega. Company ko apna ek individual nominee appoint karna padega to act as DP on its behalf.

Example:

LLP 2 has LLP 1 as one of its partners.
Since LLP 1 is a body corporate, it can’t be a DP.
So LLP 1 appoints Mister Bhai as its nominee, who becomes the DP in LLP 2.

Who is a “Resident in India”?

Acha ek aur cheez –

At least one of the DPs must be a resident in India.

So what’s the meaning of “resident in India”?

A person who has stayed in India for at least 120 days in the previous financial year.

That’s it. No need to be born here, no need to own a house – just stay here for 120 days.

So in your LLP:

1 DP must fulfil this condition
The other DP can be from outside India, no issue

Where is this All Defined?

Sab kuch clearly likha hua hai Section 7 of the LLP Act, 2008 mein.

Let’s quickly summarise what this section tells us:

Minimum 2 DPs (both must be individuals)
At least 1 DP must be resident in India
Body corporates can be partners but not DPs
They can appoint a nominee who is an individual to act as DP

Sir’s Signature Style Wrap-up:

“Bhai sun, partner toh koi bhi ban sakta hai — aadmi, company,… lekin DP sirf banda hi banega. Aur woh bhi jo India mein ghooma ho 120 din tak. Toh agar LLP banana hai, DP ready rakhna – warna ROC bol dega, game over!”

That’s the concept. Solidify it. Note it. Revise it. You’ll rock the Law paper if you think logically, just like we do in class.