DPIN serves as a unique identifier assigned to each designated partner within the LLP. It plays a pivotal role in regulatory compliance, accountability, and transparency of the LLP’s operations as well as the official acts carried out by DPIN holders. In simple words, it is a means by which regulatory authorities, partners, and other stakeholders monitor the administrative activities of designated partners in India. Moreover, DPIN also facilitates the delineation of roles and responsibilities among designated partners, ensuring clarity in decision-making processes and legal adherence to the concerned regulations. It not only streamlines the administrative procedures of LLPs but also reinforces their integrity and credibility in India.
What is DPIN?: DPIN Full Form & Meaning
The Ministry of Corporate Affairs (Government of India) issues a Designated Partner Identification Number (DPIN) to anyone who seeks to be designated as a Designated Partner of a Limited Liability Partnership (LLP). To put it another way, each Designated Partner in an LLP is allocated a role.
The number allotted to d esignated partners or the Designated Partner’s DPIN serves as proof of their legal validity. The Designated Partner Identification Number(DPIN) is often interchangeably used with the Director Identification Number (DIN).
To become a Designated Partner, you must first obtain the consent of other existing partners and obtain a Class 2 digital signature.
- Identification and authentication of Designated Partners: The Designated Partner Identification Number (DPIN) serves as a fundamental means of identifying and authenticating individuals appointed as Designated Partners within Limited Liability Partnerships (LLPs). Since multiple stakeholders are involved in establishing this entity, DPINs play a crucial role in distinguishing Designated Partners from other authorities, such as partners and employees.
- Ensures regulatory compliance within LLPs: Regulatory compliance is paramount for the smooth functioning and legal adherence of an LLP. In this regard, DPIN holds immense importance as it is a key detail used by designated partners to meet all the compliance requirements. Without a DPIN number, designated partners can neither authenticate the compliance filings nor track the LLP’s compliance status. In other words, using DPIN safeguards LLPs against potential legal repercussions arising from non-compliance with regulatory mandates.
- Facilitates seamless administrative process: The participation of Designated Partners in the administrative tasks of LLPs is vital for their efficient operations. These tasks encompass a wide range of activities, including filing documents, signing agreements, and holding meetings. Using DPIN establishes Designated Partners as the rightful authorities in charge of completing these tasks. Without them, Designated Partners may encounter obstacles in carrying out these administrative tasks, potentially leading to delays or non-compliance issues for the LLP.
Prescribed Limit for Designated Partner & Designated Partner Identification Number
- An application for name reservation using the RUN Service or RUN-LLP Service on MCA does not require a DPIN / DIN / DSC
- Form FiLLiP can be used by a maximum of two approved partners to apply for DPIN allotment. The number of individual or business partners, on the other hand, is unrestricted
- Under Form SPICe, a maximum of seven subscribers can apply for a DIN.
Need for Designated Partner & Designated Partner Identification Number
The LLP must file its particulars with the registrar within 30 days of individuals consenting to operate as Designated Partners, according to Section 7(4). A Designated Partner Identification Number (DPIN) must be obtained from the central government, according to Section 7(6), and Section 266A-G of the Companies Act, 1956, including the regulations of Mutatis Mutandis, will apply to Designated Partners. If the Designated partners violate the provisions of Sections 7, 8, or 9, the LLP and each partner are responsible to pay a fine of not less than ten thousand rupees and up to ₹5 lakh, according to Section 107.
Who Can Apply for a DPIN Number?
- Residency Status: While designated partners may be Indian or foreign individuals, at least one of them appointed in an LLP must be an Indian Resident. The LLP Act defines an Indian Resident for this purpose as an individual who has stayed in India for more than 120 days in the previous financial year.
- Age Requirement: Designated Partners must be at least 18 years old at the time of DPIN application. This ensures that individuals assuming these roles are legally competent to fulfill their responsibilities within the LLP.
- Capacity to Contract: Designated Partners must possess the legal capacity to enter into contracts. They should not be disqualified under any law from entering into contractual agreements.
- Sound Mind: Designated Partners must be of sound mind, meaning they should not be declared legally incompetent or incapable of managing their affairs.
- Convicted in a Legal Offense: Individuals who have been disqualified by law from holding the position of Designated Partner due to any legal proceedings or convictions are ineligible.
- No Insolvency Proceedings: Designated Partners must not be undergoing any insolvency proceedings or have been declared insolvent by a court of law.
- Educational Qualifications: While there are no specific educational qualifications mandated by law, individuals aspiring to become Designated Partners should ideally possess the requisite knowledge, skills, and experience relevant to the operations of the LLP.
What are the Steps for DPIN Application Process?
Step 1: Obtaining Digital Signature Certificate (DSC)
Step 2: Completing Form DIR-3
Step 3: Verification of Form DIR-3
Step 4: Submission to MCA Portal
Step 5: Payment of Fee
Step 6: Processing by MCA
Step 7: Issuance of DPIN
Step 8: Intimation to the LLP
Documents Required For DPIN Application
| Document Name | Description |
|---|---|
Proof of Identity | PAN is mandatory in the case of an Indian Applicant, whereas a passport is mandatory in the case of a foreign applicant. |
Proof of Address | Document confirming your residential address, such as Aadhar card, Passport, Voter ID card, or recent utility bills (not older than 2 months). |
Photograph | Recent passport-size photograph of the individual applying for DPIN. The photograph should be clear, with a plain background, and in color. |
Residence Proof for NRIs | In case of Non-Resident Indians (NRIs) applying for DPIN, additional documents such as an Overseas Citizen of India (OCI) card, Permanent Resident Card (PR card), or Foreign Passport with a valid Visa are required to verify residential status. |
Proof of Nomination | If the applicant is the nominee of a body corporate, a document indicating nomination will be required. This could include an authorization letter, a resolution passed by LLP partners, or any other relevant legal document serving the purpose. The document must be on the corporate’s letterhead. |
Verification of DPIN application
- Father’s name and the applicant’s name are mentioned in abbreviated forms. Even if the name is written in an abbreviated form on the ID proof, it should still be written in its full form in the application.
- The applicant’s name or father’s name mentioned in the application does not match with the names mentioned in the ID proof. Any name discrepancy, even a typographical error, may result in the denial of the application. Minor spelling variations in the father’s name are acceptable as long as they don’t significantly alter the name.
- Prefixes in the applicant’s name, such as Mr., Ms., Kumari, Shri, etc.
- Residence proofs—such as bank statements, utility bills, electricity bills, telephone bills, and other invoices—submitted for verification are more than two months old, or they are in another person’s name, like that of the applicant’s father or spouse.
- The supporting documents, such as Name, Designation, Membership/Practicing certificate number, etc., are not clearly mentioned and have not been properly attested. – If the seal or stamp doesn’t have a membership or practicing certificate number, such information can be manually entered.
- The documents attached like the passport, driver’s license, identity documents, etc., are all expired. Only documents that are still in effect today should be attached.
FAQs
Who needs to obtain a DPIN in an LLP?
Any individual seeking to be recognized as a Designated Partner within an LLP must obtain a DPIN. This includes individuals appointed as Designated Partners during the formation of the LLP or subsequent changes in partnership dynamics.
What are the documents required for obtaining a DPIN?
The documents required for obtaining a DPIN include proof of identity, proof of address, PAN card, photograph, educational qualification certificates (optional but recommended), and proof of designation/nomination as a Designated Partner within the LLP.