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Is there any difference between Managing & Designated Partner?

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Is there any difference between Managing & Designated Partner?
posted Jun 16, 2017 by Chetan Hindu

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Managing Partner

The highest formal job title given to a senior partner in charge of a firm's overall practice, management and day-to-day operations. A managing partner is roughly equivalent to a chief executive officer of a corporation in terms of duties and responsibilities, but in a partnership or small firm and not a corporation. This job title is commonly used in accounting and law firms.

Designated partner

“Designated partner” in reference to Limited Liability Partnership means any partner designated as such pursuant to section 7 of Limited Liability Partnership Act 2008. 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. In case if no partner is designated as such, or if at any time there is only one designated partner, each partner shall be deemed to be a designated partner of the LLP.

Provided that in case of a limited liability partnership in which all the partners are bodies corporate or in which one or more partners are individuals and bodies corporate, at least two individuals who are partners of such limited liability partnership or nominees of such bodies corporate shall act as designated partners.

So to conclude Designated Partners are partners who are responsible for managing the compliance under the LLP Act and Managing Partner are partners , who are managing the business of the Firm and therefore it is not necessary that a Designated Partner is also a Managing Partner & vice versa

answer Jun 17, 2017 by Swati Tyagi
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