Section 7 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 7 requires every LLP to have at least two designated partners who are individuals, at least one of them resident in India, and sets out how they are chosen, how they consent, what is filed and the identification number they must hold. The 2021 Act changed the test for "resident in India" to 120 days during the financial year. If you are setting up an LLP, our LLP registration service covers this requirement from the start.
Every LLP must have at least two designated partners who are individuals, and at least one must be resident in India (7(1)). "Resident in India" means a stay in India of not less than one hundred and twenty days during the financial year (Explanation, as substituted in 2021). An individual must give prior consent before becoming a designated partner (7(3)), and the LLP must file the particulars with the Registrar within thirty days of the appointment (7(4)). Every designated partner must obtain a DPIN (7(6)). Breaches attract a penalty under section 10.
Section 7 at a glance
| Sub-section | What it provides |
|---|---|
| 7(1) | At least two designated partners who are individuals; at least one resident in India |
| 7(1) proviso | If all partners are bodies corporate, or partners are individuals and bodies corporate: at least two individuals who are partners or nominees of the bodies corporate act as designated partners |
| 7(1) Explanation | "Resident in India": stay of not less than 120 days during the financial year |
| 7(2) | Who is designated: as in the incorporation document, or by the LLP agreement |
| 7(3) | Prior consent of the individual, in the prescribed form and manner |
| 7(4) | Particulars filed with the Registrar within thirty days of appointment |
| 7(5) | Eligibility conditions and requirements as prescribed |
| 7(6) | DPIN from the Central Government; Companies Act, 2013, sections 153 to 159 apply mutatis mutandis |
Section 7(1): the number, the individual and the residence test
"Every limited liability partnership shall have at least two designated partners who are individuals and at least one of them shall be a resident in India."
Two requirements sit in that sentence: two designated partners, both individuals, and one of them a resident. "Designated partner" is defined in section 2(1)(j) as a partner designated under section 7 (see our section 2 articles).
The proviso for body corporate partners
Where all the partners are bodies corporate, or where some partners are individuals and some are bodies corporate, at least two individuals must act as designated partners. They may be partners of the LLP or nominees of the bodies corporate. So a company that is a partner acts through an individual nominee.
The Explanation: "resident in India"
"Resident in India" means a person who has stayed in India for a period of not less than one hundred and twenty days during the financial year.
What changed in 2021. Footnote 14 to the clean text records that this was substituted for "eighty-two days during the immediately preceding one year" by the 2021 Act (clause 4(a)). Before the amendment the test was eighty-two days in the preceding one year; the current text is 120 days during the financial year.
Two things the text does not say, so none can be read in: it does not say which financial year (the clause just reads "the financial year", without saying whether that is the LLP's year or the person's), and it does not say how the stay is to be proved. Check the LLP Rules and the official text for these.
Example. Priya and Neel are the two designated partners of Harbour Digital LLP. Priya stayed in India for 150 days in the financial year; Neel was abroad for most of it and stayed 60 days. Priya meets the test, so the LLP has at least one resident designated partner. The requirement in 7(1) is met on these facts.
Section 7(2): how designated partners are chosen
Subject to 7(1):
- (i)(a) If the incorporation document names who the designated partners are, those persons are designated partners on incorporation.
- (i)(b) If the incorporation document says that each of the partners from time to time is to be a designated partner, every partner is one.
- (ii) Otherwise, any partner may become a designated partner by and in accordance with the LLP agreement, and may cease to be one in accordance with the LLP agreement.
The incorporation document's contents are in section 11(2)(f), which requires it to state the name and address of the persons who are to be designated partners on incorporation (covered in our section 11 article).
Section 7(3): prior consent
"An individual shall not become a designated partner in any limited liability partnership unless he has given his prior consent to act as such to the limited liability partnership in such form and manner as may be prescribed." The consent comes first. The form and manner are prescribed; our guide on the consent letter of a designated partner looks at the document in practice.
Section 7(4): filing with the Registrar
Every LLP must file with the Registrar the particulars of every individual who has given his consent to act as designated partner, in the prescribed form and manner, within thirty days of his appointment. The thirty days run from appointment, not from consent.
Contravention of 7(4) draws a separate, lower penalty than the other sub-sections; see section 10 below.
Section 7(5): eligibility conditions
An individual eligible to be a designated partner must satisfy such conditions and requirements as may be prescribed. The section itself lists none; they are found in the rules.
Section 7(6): DPIN
Every designated partner must obtain a Designated Partner Identification Number (DPIN) from the Central Government, and sections 153 to 159 (both inclusive) of the Companies Act, 2013 apply mutatis mutandis for that purpose. The 2021 Act replaced the earlier reference to sections 266A to 266G of the Companies Act, 1956 (footnote 15; clause 4(b)). For the practical side, see designated partners: role, responsibilities and DPIN.
Consequences of default
Section 10 provides the penalties (covered in the article on section 10):
| Contravention | Penalty under section 10 |
|---|---|
| 7(1) | Penalty on the LLP and every partner (10(1)) |
| 7(4) | Penalty on the LLP and every designated partner (10(2)) |
| 7(5) | Penalty on the LLP and every partner (10(3)) |
Section 8 (liabilities of designated partners) and section 9 (vacancy within thirty days) work alongside this section; they are covered in the next article.
Need help with designated partners?
A wrong count, a missing consent or a late filing is easy to avoid at the start and harder to correct later. Our LLP registration team can help you choose designated partners, collect the consents and plan the residence test for the year.
Key takeaways
- At least two designated partners, both individuals, and at least one resident in India (7(1)).
- Resident means a stay of not less than 120 days during the financial year (substituted by the 2021 Act).
- Bodies corporate act through individual partners or nominees (proviso).
- Prior consent is needed; particulars go to the Registrar within thirty days of appointment (7(3), 7(4)).
- Every designated partner needs a DPIN, using Companies Act, 2013, sections 153 to 159 (7(6)).
Read next
- Sections 8 and 9: liabilities of and changes in designated partners
- Section 10: penalty for contravening sections 7 to 9
- Designated Partners in LLP: Role, Responsibilities and DPIN
- How to File DIR-3 KYC for LLP Designated Partners
Disclaimer: Based on the Limited Liability Partnership Act, 2008 as amended by the Limited Liability Partnership (Amendment) Act, 2021, as consulted on 1 October 2026. Forms, fees and procedure are set by the LLP Rules, 2009 as amended from time to time. This article is general information, not legal advice; check the official text before acting.