The Designated Partner Identification Number (DPIN) is a unique identification number issued to individuals who desire to become designated partners in a Limited Liability Partnership (LLP). It’s a unique number that is not available for everybody, but only you are eligible for it, and he needs to apply for it as per the procedure provided. Under the Limited Liability Partnership Act of 2008 in India, this number ensures streamlined compliance and accountability for partners, and it ensures transparency between the partners. Acquiring a DPIN is a simple and straightforward process that you need to follow, but it requires attention to detail and compliance with the legal framework. This article will discuss and guide you on how to obtain a DPIN, the necessary documents, eligibility criteria, and practical tips to ease the process.
What is a DPIN?
The DPIN is a mandatory identifier for individuals designated as partners in LLPs in India. Similar to the Director Identification Number (DIN) used for company directors, the DPIN enables the government and other regulatory authorities to track the involvement of partners across various LLPs and ensures compliance with legal and statutory obligations.
Why is a DPIN Necessary?
The DPIN serves multiple purposes, including:
- Ensuring the transparency and traceability of individuals managing LLPs and accountability between the partners in the firm.
- Maintaining an official database of all designated partners.
- Facilitating compliance with the LLP Act and allied regulations.
- Preventing fraudulent activities by making it mandatory for partners to be identifiable.
Eligibility Criteria for Obtaining a DPIN
To apply for a DPIN, an individual needs to fulfil the following criteria:
- Age Requirement: The applicant must be of an age of 18 years old as per his official document.
- Citizenship: Both Indian and foreign nationals are eligible to apply for DPIN.
- Competency: The individual must be of sound mind and not declared insolvent or convicted of a criminal offence by a court.
Steps to Obtain a DPIN (Designated Partner Identification Number)
1. Registering on the MCA Portal
Firstly, you need to get yourself registered on the Ministry of Corporate Affairs (MCA) portal. Follow these steps:
- Visit the MCA website.
- Firstly, you need to create your account by clicking on the ‘Register’ option.
- Provide your personal details, such as name, email address, and mobile number.
- Enter a secret username and password as per your choice, remember it for future login purposes, and complete the LLP registration process.
2. Filling Out the Application Form (Form DIR-3)
Once registered, you need to fill out Form DIR-3, which is the prescribed form for applying for a DPIN. Here are the key steps:
- Download Form DIR-3: You can find it on the MCA portal under the e-Forms section.
- Fill in Personal Details: Enter details such as full name, father’s name, date of birth, and address.
- Specify LLP Details: Provide the name and LLP identification number (LLPIN) of the LLP in which you will be a designated partner.
- Contact Information: Enter your email ID and phone number for official communication.
3. Documentation
Attach the following documents along with Form DIR-3:
- Identity Proof: Copy of your PAN card, which is mandatory for Indian nationals and passport for foreign nationals.
- Address Proof: Recent utility bills (electricity, telephone, or water), bank statements, or Aadhaar card.
- Photograph: A passport-sized colour photograph.
- Declaration: A declaration from an existing LLP partner or director stating your intention to join as a designated partner.
- Digital Signature Certificate (DSC): Its necessary that you have a valid DSC registration on the MCA portal.
- Getting the Form Verified and Certified
The completed Form DIR-3 must be digitally signed by the specific applicant and verified by a professional, which may include a chartered accountant, company secretary, cost accountant or any other expert. This ensures the authenticity of the information provided.
4. Submitting the Form
- Log in to your MCA account.
- Upload the completed and verified Form DIR-3 along with the necessary attachments.
- Lastly the payment of application fee online through net banking, credit card, or other available modes.
5. Approval Process
After submission, the application is reviewed by the Central Registration Centre (CRC). If the details and documents are in order, the DPIN is approved and issued. You will receive the DPIN via email, and it will also be available for download on the MCA portal.
Common Mistakes to Avoid
- Incorrect or Incomplete Information: Double-check all personal and LLP details before submission.
- Invalid Documents: Ensure that the identity and address proofs are valid and not older than two months.
- Unregistered DSC: A valid and registered DSC is essential for signing the form.
- Delay in Verification: Get the form verified promptly by a professional to avoid delays.
Renewal and Changes in DPIN
The DPIN does not require the process of renewal because it is valid for a lifetime. However, if there are changes in your personal details, such as name or address, you must update your DPIN information by filing Form DIR-6 on the MCA portal.
Benefits of Holding a DPIN
- Legal Compliance: Simplifies adherence to statutory and regulatory requirements.
- Transparency: It provides a transparent database of LLP partners.
- Ease of Management: Facilitates the smooth operation and management of LLPs.
- Credibility: It provides the credibility of LLP.
Conclusion
Obtaining a Designated Partner Identification Number (DPIN) is an essential step for individuals who want to become designated partners in a Limited Liability Partnership (LLP). By following the outlined steps and ensuring that all requirements are met, you can obtain your DPIN without any hassle, and you can also get guidance from professionals and various experts in the medium of online or offline as per your preference. Always keep your details up-to-date to maintain compliance and leverage the benefits of being part of a legally recognized business structure like an LLP.
By understanding the process, preparing the necessary documentation, and adhering to the guidelines, you’ll be well on your way to successfully becoming a designated partner in an LLP.
Frequently Asked Questions (FAQs)
1. Can I apply for a DPIN if I already have a DIN?
No, if you already have a DIN, you do not need to apply for a separate DPIN. The DIN serves the same purpose for both companies and LLPs.
2. Is there an application fee for DPIN?
Yes, a nominal fee is charged during the submission of Form DIR-3. The fee may vary, so check the latest fee structure on the MCA portal.
3. How long does it take to get a DPIN?
If all documents and details are in order, the DPIN is usually issued within 1-2 business days.
4. What happens if my application is rejected?
In case of rejection of your application form, you will receive a notification from the verified source detailing the reasons. Rectify the issues and reapply with the corrected form and documents.
5. Can a foreign national become a designated partner in an LLP?
Yes, foreign nationals can become designated partners in an LLP and are eligible to apply for a DPIN. Their passport and proof of address are mandatory for it.
