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CA Foundation · Business Laws · The Limited Liability Partnership Act, 2008

Asha and Bhaskar, both residents of Pune, wish to form a business as a limited liability partnership. Under the LLP Act, 2008, what is the minimum number of members required to carry on the LLP?

An LLP needs a minimum of two members at incorporation. The Act sets no upper limit on members. Figures like three, five or seven apply to other entities such as companies, not to a limited liability partnership under the 2008 Act.

  1. ATwoCorrect
  2. BThree
  3. CFive
  4. DSeven

Explanation

An LLP must have at least two members at incorporation. If the number falls below two for more than six months and the remaining member carries on business, that member becomes personally liable for the LLP's obligations during that period. Three, five and seven relate to other forms such as private or public companies, so they are incorrect.

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