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CMA Intermediate · Business Laws and Ethics · Limited Liability Partnership Act, 2008

For a limited liability partnership to be incorporated under the LLP Act, 2008, the minimum number of persons who must subscribe their names to the incorporation document is:

Two or more persons associated for carrying on a lawful business with a view to profit must subscribe their names to the incorporation document. The Act sets two as the minimum number, and it does not require seven persons or any professional qualification for subscribers.

  1. ATwo persons associated for carrying on a lawful business with a view to profitCorrect
  2. BThree persons, of whom at least one is a resident in India
  3. CSeven persons associated for any lawful purpose
  4. DTwo persons, both of whom must be designated partners and chartered accountants

Explanation

Under section 11(1)(a), two or more persons associated for carrying on a lawful business with a view to profit subscribe their names to the incorporation document. The Act does not require three or seven persons in this provision. Being a professional or a designated partner is not a condition for subscribing.

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