In the context of limited liability partnerships in India, a Designated Partner Identification Number (DPIN) is a unique identification number assigned to designated partners. It serves as a crucial identifier for individuals assuming key roles and responsibilities within an LLP. In this blog post, we will delve into the validity of the DPIN, exploring its duration, renewal process, and the significance of maintaining an active DPIN.
Duration of DPIN Validity
A DPIN is valid for a lifetime once assigned to an individual. Unlike other identification numbers that may have an expiration date, such as a passport or driver’s license, a DPIN remains valid as long as the designated partner continues to be associated with the LLP. This implies that the DPIN does not require periodic renewal or revalidation, providing a consistent identifier throughout the designated partner’s tenure.
Transferability of DPIN
A DPIN is not transferable between individuals. It is associated with a specific designated partner and should not be used by anyone else. When a designated partner ceases to be associated with the LLP, either by resignation or removal, the DPIN remains with that individual and cannot be assigned or utilized by another person in the same or any other LLP.
Consequences of Inactive DPIN
While the DPIN does not require renewal, it is crucial to ensure that the DPIN remains active throughout the designated partner’s association with the LLP. If the DPIN becomes inactive due to non-compliance or any other reason, it can lead to legal complications and hinder the smooth functioning of the LLP. An inactive DPIN may result in the inability to undertake certain legal transactions or perform designated partner duties within the LLP.
Maintaining an Active DPIN
To maintain an active DPIN, designated partners must fulfill their statutory obligations. This includes filing annual returns, financial statements, and other required documents with the Registrar of Companies (RoC) within the prescribed timelines. Non-compliance with these requirements can result in penalties, prosecution, and potential disqualification as a designated partner, which may render the DPIN inactive.
Re-activation or Reinstatement of DPIN
If a DPIN becomes inactive or is disqualified due to non-compliance, the designated partner can apply for its re-activation or reinstatement. The process typically involves rectifying the non-compliance issues, paying any applicable penalties, and submitting the necessary documents to the RoC. Once the DPIN is re-activated, the designated partner can resume their role and responsibilities within the LLP.
Update of DPIN Information
It is essential for designated partners to keep their DPIN information updated. In case of any changes in personal details, such as name, address, or contact information, the designated partner must inform the RoC and update their DPIN records accordingly. This ensures accurate identification and communication within the LLP and helps maintain the integrity of the DPIN system.
For designated partners in LLPs, the Designated Partner Identification Number acts as a distinctive identity.
It remains valid for a lifetime and does not require periodic renewal. However, designated partners must ensure compliance with statutory requirements to maintain an active DPIN and avoid any legal repercussions. Keeping the DPIN information updated is also crucial for accurate identification within the LLP.