Section 7 of LLP Act, 2008 : Section 7: Designated Partners

Explanation using Example

Imagine that Rita and Suresh decide to start a consulting business and choose to form a Limited Liability Partnership (LLP) for their venture. They register their LLP and as per Section 7(1) of the Limited Liability Partnership Act, 2008, they both agree to be the designated partners. Suresh is a resident of India as he has been living in India for the past 200 days, satisfying the residency requirement. Rita, on the other hand, is a US citizen but has been living in India for the past 130 days in the financial year, which also makes her eligible as a resident in India.

They draft an incorporation document where they specify themselves as designated partners as per Section 7(2)(i)(a). They submit this document at the time of incorporation, and upon the LLP's establishment, they both become the designated partners.

As required by Section 7(3), Rita and Suresh give their consent to act as designated partners by signing a consent form, which they file with the Registrar within thirty days as per Section 7(4).

Before starting their roles, they both apply for and obtain a Designated Partner Identification Number (DPIN) as per Section 7(6), which is mandatory to act as designated partners in an LLP.