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CA Intermediate · Corporate and Other Laws · The Limited Liability Partnership Act, 2008

Kaveri Tech LLP has two designated partners, Rohan and Sana. Sana, a resident Indian, resigns as designated partner, and the LLP has no other designated partner. Rohan, a resident in India, continues alone. What is the position regarding the LLP's compliance with designated partner requirements?

The LLP must have at least two individual designated partners, at least one resident in India. With only Rohan left, it is non-compliant and must appoint another designated partner. It is not automatically dissolved, and merely informing the Registrar does not remove the requirement.

  1. ANo issue arises because one designated partner is sufficient for an LLP
  2. BThe LLP must have at least two designated partners who are individuals, at least one of whom is resident in India, so it must appoint anotherCorrect
  3. CThe LLP automatically stands dissolved when the number of designated partners falls below two
  4. DThe LLP may continue indefinitely with Rohan, provided the Registrar is informed within 30 days

Explanation

Every LLP must have at least two designated partners who are individuals, with at least one resident in India. Falling below two is a default requiring a fresh appointment, not automatic dissolution. If no designated partner is appointed, every partner is deemed designated. Informing the Registrar does not cure the shortfall.

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