Updated : March 01, 2024Designated Partner Identification Number (DPIN)
Overview : In this comprehensive blog, we will delve into the details of Designated Partner Identification Number, a crucial identifier for designated partners appointed in an LLP. We will cover what is DPIN, what is its purpose, and what is the process of obtaining it with complete information on the application, documentation, and fees required for the same. Our objective is to help entrepreneurs and LLP owners effectively manage their LLP, without any legal hindrance or departmental hurdles. Read further for more information.
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
DPIN full form stands for Designated Partner Identification Number. As its full form suggests, it is a unique identifier for Designated Partners appointed in LLPs across India. Additionally, it formally recognizes them and defines their roles within an LLP. The DPIN format resembles an alphanumeric code akin to personal identification numbers, and the purpose of its allocation includes the following.
- 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.
Who Can Apply for a DPIN Number?
Anyone aspiring to be recognized as a Designated Partner must possess a Designated Partner Identification Number. In other words, no individual can be appointed as a Designated Partner unless the Ministry of Corporate Affairs has allotted a DPIN number to them. So, before delving into its application process, let’s first understand who can apply for it based on the prescribed eligibility criteria for the same.
- 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?
The application process for obtaining a Designated Partner Identification Number (DPIN) involves several steps mandated by the Ministry of Corporate Affairs (MCA). It ensures that individuals meet all the compliances and fulfill the required formalities before being appointed as Designated Partners. Explained below are the detailed steps involved in the DPIN application process for your complete clarity.
Step 1: Obtaining Digital Signature Certificate (DSC)
Before initiating the DPIN application process, individuals must first obtain a Digital Signature Certificate (DSC) from a certifying authority recognized by the MCA. The DSC serves as an electronic signature for digitally signing documents submitted during the DPIN online application process.
Step 2: Completing Form DIR-3
The next step involves completing the online Form DIR-3, which is the application form for the allotment of DPIN. This form can be accessed on the MCA website and requires individuals to provide personal details such as name, date of birth, address, educational qualifications, and other relevant information while applying.
Step 3: Verification of Form DIR-3
Once Form DIR-3 is filled out with accurate information, it needs to be verified by a practicing Chartered Accountant, Company Secretary, or Cost Accountant. The verifier attests to the authenticity and correctness of the information provided in the form.
Step 4: Submission to MCA Portal
After verification, the completed Form DIR-3 along with the necessary supporting documents must be submitted electronically on the MCA portal. The submission process requires individuals to create an account on the MCA portal and upload the documents in the prescribed format.
Step 5: Payment of Fee
Along with the submission of Form DIR-3, applicants are required to pay the applicable fee for DPIN allotment. This payment is made online on the MCA portal itself and costs Rs.500 per DPIN application.
Step 6: Processing by MCA
Upon successful submission of Form DIR-3 and payment of the fee, the MCA reviews the application and verifies the information provided. This process may take a few days, during which the MCA conducts necessary checks and validations.
Step 7: Issuance of DPIN
Once the application is processed and approved by the MCA, the applicant is allotted a DPIN. The DPIN is issued electronically and sent to the registered email address provided during the application process. It shall be valid for a lifetime, subject to annual DIR-3 KYC updation and voluntary DPIN surrender.
Step 8: Intimation to the LLP
Once the DPIN is allotted, the applicant shall intimate the same in Form 9 to the Limited Liability Partnership he shall be appointed in. This intimation is necessary to ensure transparency and legal adherence in the appointment process.
Documents Required For DPIN Application
Ensuring smooth and efficient processing of your DPIN application involves providing the necessary documents as per the regulatory requirements. These primarily include the identity and address proofs of the applicants, their photographs, and documents establishing their nomination. Additionally, the MCA also mandates certification and an attestation of the documents by professionals. Refer to the comprehensive list below for full information.
| 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. |
| Note: All these documents must contain updated and correct details. These details must be in line with the information provided in the application, as any discrepancy can lead to legal hurdles. Moreover, they must be duly attested by a public notary, gazetted officer, or a professional including CA, CS, or CWA. | |
Verification of DPIN application
When the DPIN application is finally submitted to the MCA, it is examined carefully and only after a successful verification, the DPIN number is assigned to the applicant. However, if the application is not successfully verified, it automatically gets marked for resubmission. Here are some of the most common reasons for a DPIN application to be marked for resubmission:
- 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.
Changes in DPIN Number
In the event of circumstances necessitating changes to a partner’s DPIN within a Limited Liability Partnership (LLP), swift action is essential to maintain regulatory compliance and accurate records. The process typically involves identifying the need for change, reviewing regulatory requirements, and submitting an application for DPIN alteration in Form 10 to the Registrar of Companies (ROC). It is imperative to provide all necessary documentation and information supporting the change, ensuring adherence to regulatory guidelines. The application should be submitted within 30 days of the occurrence necessitating the change. Additionally, the changes must also be intimated to the LLP within 15 days of the occurrence of change in Form 6.
Conclusion
Designated Partner Identification Numbers (DPINs) serve as indispensable identifiers within the realm of Limited Liability Partnerships (LLPs), ensuring transparency, accountability, and regulatory compliance. From understanding the significance and application process of DPINs to navigating changes and updates, individuals embarking on LLP endeavors must grasp the intricacies surrounding DPINs to uphold the integrity and efficacy of their partnership structures. By adhering to regulatory requirements, promptly addressing changes, and maintaining accurate records, LLPs can foster a conducive environment for growth, innovation, and sustainable business practices.
